Corsair Gaming Plunges 19.88% on Missed Earnings, Revised Guidance Amid DDR5 Shortages

Corsair Gaming (NASDAQ: CRSR) fell to its lowest level since this month, with an intraday decline of 19.02% on Nov. 6. The stock has dropped 19.88% over three consecutive sessions, marking its steepest downturn in recent months amid earnings underperformance and revised financial forecasts.

The decline follows Q3 2025 earnings that missed Wall Street expectations, with non-GAAP EPS of $0.06 trailing the $0.09 consensus. Revenue of $345.8 million, up 13.7% year-over-year, fell short of estimates, compounded by a 6% net margin deficit. The company attributed the shortfall to $12 million in unexpected tariff costs since May 2025 and a $9.53 million quarterly loss. Revised full-year guidance now targets $1.425 billion to $1.475 billion in revenue, down from previous projections, citing DDR5 memory supply constraints and macroeconomic pressures.

Analyst sentiment remains divided, with Goldman Sachs cutting its price target to $6.50 while Barclays upgraded to “Strong-Buy” in August. Institutional investors, however, have adjusted stakes, with JPMorgan and BNP Paribas increasing holdings. Broader industry headwinds, including DDR5 shortages and competitive pressures, further cloud near-term prospects. Despite strategic initiatives in AI-integrated hardware and SIM racing, Corsair’s high valuation multiples and operational volatility persist as key challenges for investors.