MW AI-chip company GSI Technology on pace for highest close in nine months, lifted by new products
By James Rogers
GSI Technology's shares were continuing their rally Thursday, boosted by the company's launch of new server products
Shares of chip maker GSI Technology Inc. rose 17.4% Thursday, continuing a rally fueled by the launch of new server products this week.
The stock $(GSIT)$, which is trading at $5.94, is on pace for its highest close since July 14, 2023, when it closed at $5.96, Dow Jones Market Data show. GSI Technology's shares have been buoyed by Tuesday's announcement about its Leda-E and Leda-S boards, which incorporate the company's Gemini-I processor and are described as high-capacity, low-power server products. The company is also touting its 28-nanometer Gemini I processor as being well suited to synthetic-aperture radar, or SAR, image collection and molecular research.
Set against this backdrop, the stock is on pace for its longest winning streak since Feb, 29, 2024, when it rose for four straight trading days.
Related: Shares of GSI Technology, which sparked meme-like buzz, surge on new products
While companies like Nvidia Corp. $(NVDA)$ and Palantir Technologies Inc. (PLTR) have cemented themselves as artificial-intelligence plays in the eyes of Wall Street, GSI Technology is one of a number of lesser-known AI-related companies that have been garnering attention.
The chip maker sparked meme-like buzz last year, attracting attention from users posting on Reddit Inc. (RDDT) stock-market forums. With a market capitalization of $127.99 million, GSI Technology is relatively small compared with original meme-stock darlings AMC Entertainment Holdings Inc. $(AMC)$ and GameStop Corp. $(GME)$, which have market caps of $796.1 million and $3.48 billion, respectively. The company is also dwarfed by chip maker and AI heavyweight Nvidia, which has a market cap of $2.22 trillion, and Palantir, which has a market cap of $50.23 billion.
GSI Technology'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 Technology told MarketWatch.
Related: AI chip company GSI Technology continues rally after launching new products
Earlier this year, GSI was awarded a $1.1 million contract to develop an artificial-intelligence chip for the U.S. Department of Air Force.
GSI Technology's shares have risen 124.9% in 2024, outpacing the S&P 500's SPX gain of 10.1%.
-James Rogers
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(END) Dow Jones Newswires
April 04, 2024 13:40 ET (17:40 GMT)
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