AI chip company GSI Technology continues rally after launching new products

MW AI chip company GSI Technology continues rally after launching new products

By James Rogers

GSI shares are on pace for their highest close since July 2023

Shares of chip maker GSI Technology Inc., an increasingly popular artificial-intelligence play, were climbing 8.8% Wednesday - continuing a rally fueled by the launch of new server products this week.

GSI's shares $(GSIT)$ ended Tuesday's session up 35.1%, buoyed by the announcement of two new server products. The stock, which was trading at $5.02 at last check, is on pace for its highest close since July 21, 2023, when it ended trading at $5.19, according to Dow Jones Market Data.

The new Leda-E and Leda-S boards incorporate GSI's Gemini-I processor and are described by the company as high-capacity, low-power server products. GSI touts its 28-nanometer Gemini I processor as well suited to synthetic-aperture radar $(SAR)$ image collection and molecular research.

Related: Shares of GSI Technology, which sparked meme-like buzz, surge on new products

Founded in 1995, GSI designs and develops memory products for the telecommunications and networking industries. The company describes itself as a leading provider of static random-access memory (SRAM) semiconductor products.

GSI's stock has climbed 166.9% in the last 12 months, outpacing the S&P 500 index's SPX gain of 27.7%.

The chip maker sparked meme-like buzz last year, attracting attention from users posting on Reddit Inc. (RDDT) forums. With a market capitalization of $116.86 million, GSI is relatively small compared to original meme-stock darlings AMC Entertainment Holdings Inc. $(AMC)$ and GameStop Corp. $(GME)$

Related: Small cap GSI Technology generates meme-like buzz

GSI's efforts around AI-processor technology have attracted particular attention. Last year, the company announced a milestone for its Gemini-II processor, which is aimed at the AI market. The 16-nanometer Gemini-II chip will be generally available in 2024, GSI told MarketWatch.

Earlier this year GSI was awarded a $1.1 million contract to develop an artificial-intelligence chip for the U.S. Department of the Air Force.

-James Rogers

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April 03, 2024 13:27 ET (17:27 GMT)

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