There is a big difference between "just cheap" and "cheap for a reason", and I have my doubts as to which bucket best describes GSI Technology (NASDAQ:GSIT). While I do believe there is a solid argument to be made that GSI can regain share in the static random access memory (SRAM) market that it lost to Cypress (NASDAQ:CY) on IP litigation worries, Cypress isn't throwing in the towel on this fight.
The bigger concern I have is about market growth. Over the last decade and a half, SRAM has transitioned from a large, high-growth market with numerous competitors to a slower-growing market with fewer players and a much greater reliance on networking/telecom equipment. I do believe...
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