GSI Technology (NASDAQ:GSIT) Announces Quarterly Earnings Results, Misses Estimates By $0.06 EPS

Key Points

• GSI Technology reported a quarterly loss of $0.18 per share, missing estimates by $0.06; revenue of $6.02 million also fell short of expectations.
• Supply constraints, delayed shipments, and higher manufacturing costs pressured results. The company forecast Q3 revenue of $5 million–$6 million and gross margin of 38%–40%, with a possible recovery beginning in Q4.
• Product development advanced: Gemini-II is operating in a live monitoring project in Taiwan, while GRIN customer availability is expected by December 2026 and the Plato chip remains targeted for a March 2027 tape-out.

GSI Technology (NASDAQ:GSIT - Get Free Report) issued its quarterly earnings data on Thursday. The semiconductor company reported ($0.18) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.06), FiscalAI reports. GSI Technology had a negative net margin of 62.90% and a negative return on equity of 21.39%. The firm had revenue of $6.02 million for the quarter, compared to analyst estimates of $6.25 million.

Here are the key takeaways from GSI Technology's conference call:

• Gemini-II reached a commercial milestone: Taiwan’s Hsinchu County accepted the initial stage of the Smart Guardian Eye project, and the system is now providing live AI video monitoring and incident reports across about 20 cameras. An expansion to roughly 80 cameras is possible, but depends on a competitive procurement process.
• GRIN is progressing toward customer release: GSI said the AI development toolkit has cut some model-adaptation tasks to less than a week, from work that previously took about a month or longer. Initial customer availability is expected before the end of December 2026, with commercial release planned for the first half of calendar 2027.
• Plato remains on schedule: The next-generation APU is targeted for tape-out in March 2027, with initial sampling expected by late summer 2027; GSI says it is designed for inference below 10 watts. The company is discussing strategic partnerships to help develop and commercialize the chip, but no agreements have been signed.
• Near-term financial results face pressure from supply constraints and costs: Fiscal Q2 revenue was $6 million and gross margin was 48.5%, below guidance, as manufacturing costs rose and shipments were delayed by inventory shortages and longer lead times. GSI expects Q3 revenue of $5 million–$6 million and gross margin of about 38%–40%; it plans price increases, but said any recovery may begin in Q4.

GSI Technology Stock Performance

NASDAQ GSIT traded down $0.44 during trading hours on Thursday, reaching $3.20. 814,704 shares of the company's stock were exchanged, compared to its average volume of 1,090,664. The company's 50-day moving average is $4.94 and its two-hundred day moving average is $6.67. GSI Technology has a one year low of $3.07 and a one year high of $13.00. The company has a market capitalization of $122.98 million, a price-to-earnings ratio of -6.96 and a beta of 2.26.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on GSIT shares. Wall Street Zen upgraded shares of GSI Technology from a "strong sell" rating to a "sell" rating in a report on Saturday, October 10th. Weiss Ratings reissued a "sell (d-)" rating on shares of GSI Technology in a report on Thursday, October 15th. Needham & Company LLC restated a "buy" rating and issued a $9.00 price objective on shares of GSI Technology in a research report on Thursday, October 22nd. Finally, Williams Trading set a $9.00 price objective on GSI Technology in a research note on Monday, September 14th. One research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $9.00.

About GSI Technology

GSI Technology, Inc is a semiconductor company that develops and supplies high-performance memory and processing solutions. Its product portfolio has historically included static random-access memory (SRAM) devices, including synchronous SRAM products designed for applications requiring fast data access and high bandwidth.

The company also develops associative processing technology for data-intensive computing. Its Gemini Associative Processing Unit (APU) platform is designed to accelerate workloads such as artificial intelligence inference, natural-language processing, similarity search and other applications that involve searching large data sets.

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