Ashraf Eassa
Long/short equity, contrarian, independent research, tech

GSI Technology: Dirt Cheap With Substantial Upside As Lawsuit Concerns Subside

GSI Technology (NASDAQ:GSIT) is a semiconductor firm that specializes in the development of SRAM ("static random access memory") and low latency DRAM ("LLDRAM"). I believe that shares have rather attractive long-term upside in light of the outcome of a patent trial that Cypress Semiconductor (NASDAQ:CY) had filed against the firm. This pending lawsuit not only put pressure on the firm's revenues as customers exercised caution about using the GSIT's products, but it also led to outsized legal expenses relative to the firm's revenue base. While some concerns remain about the near-term TAM for GSIT's products in light of recent weak telco capex, particularly as the firm's SRAM sales are highly levered to the health of the...

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