GSI Technology's 2026 Q1 Earnings Call: Contradictions in Supply Chain Challenges and Sales Strategies

Supply chain issues and lead times, sales to KYEC and impact of lead times, supply chain issues and order patterns, and sales incentives and product focus are the key contradictions discussed in GSI Technology's latest 2026Q1 earnings call.



Revenue Growth and Strong SRAM Demand:
- GSI Technology reported net revenue of $6.3 million for Q1 2026, up 7% sequentially and 35% year-over-year.
- The growth was fueled by rising demand for its SRAM chips, driven by strong market momentum for leading AI processors.

Improved Profitability:
- The company achieved a 200 basis point sequential increase in gross margin, over 1,100 basis points compared to the prior year.
- This improvement was primarily due to product mix and benefits of scale from higher revenue on the fixed cost of revenues.

Supply Chain Challenges:
- Despite strong demand for high-performance SRAM chips, extended lead times due to supply constraints impact sales.
- This is attributed to suppliers moving assembly from China to Taiwan, causing lead time disruptions.

Gemini-II Chip Milestones:
- The evaluation of the second spin of the Gemini-II chip has been concluded, with all loans resolved, and the silicon is fully functional.
- This marks a significant milestone in the company's roadmap and sets the stage for broader market opportunities.