Core Insights - GSI Technology, Inc. has introduced the Gemini-II APU, which offers ultra-low power consumption and industry-leading performance for real-time drone workloads, targeting a market projected to reach $2.7 billion by 2030 [1][3]. Company Strategy - GSI Technology is focusing on high-growth AI edge processor markets, particularly in drones, where its architecture provides significant advantages in performance and power efficiency [1][3]. - The company has raised $50 million in equity to advance its roadmap for capturing opportunities in edge markets, emphasizing improvements in power efficiency, latency, and on-device intelligence [3]. Market Potential - The global edge AI processor market is expected to grow to $9.6 billion by 2030, driven by the transition of AI from data centers to purpose-built workloads at the edge [3]. - GSI Technology aims to leverage its established relationships with defense agencies and contractors to prioritize early edge AI deployment in drone and military vehicle markets [3]. Product Performance - The Gemini-II APU delivers GPU-class performance at only 15W, significantly lower than competitors, making it suitable for power- and size-constrained environments [2][3]. - A Cornell University study confirmed that GSI's APU architecture achieves GPU-class performance with over 98% lower energy consumption and can reduce total processing time by up to 80% compared to conventional CPUs [4].

Financial Data and Key Metrics Changes - The company reported net revenues of $6.4 million for the second quarter of fiscal 2026, compared to $4.6 million for the same period in fiscal 2025, and $6.3 million in the previous quarter [18] - Gross margin was 54.8% in the second quarter of fiscal 2026, up from 38.6% in the year-ago quarter but down from 58.1% in the preceding quarter [18] - The operating loss for the second quarter of fiscal 2026 was $3.2 million, an improvement from a loss of $5.6 million in the prior year period and a loss of $2.2 million in the previous quarter [19] - The net loss for the second quarter of fiscal 2026 was $3.2 million or $0.11 per diluted share, compared to a net loss of $2.2 million or $0.08 per diluted share for the same period in fiscal 2025 [20] Business Line Data and Key Metrics Changes - Sales to KYEC were $802,000 or 12.5% of revenues, compared to $650,000 or 14.3% in the same period a year ago [16] - Sales to Nokia were $200,000 or 3.1% of revenues, down from $812,000 or 17.8% in the same period a year ago [16] - Military defense sales accounted for 28.9% of second quarter shipments, down from 40.2% in the comparable period a year ago [16] - SigmaQuad sales represented 50.1% of second quarter shipments, up from 38.6% in the second quarter of fiscal 2025 [16] Market Data and Key Metrics Changes - The company is focusing on the military defense sector and edge applications, with significant interest in low power solutions for drones and military vehicles [10][12] - The Gemini II project has been approved for prototyping by an offshore defense contractor, indicating strong market validation [10] Company Strategy and Development Direction - The company aims to convert proof of concept projects into commercial customers and extend those relationships into large production programs [7] - The focus is on hardware and software development for Gemini II and the acquisition of necessary IP for the PLATO chip [6][12] - The company is prioritizing edge applications over data center solutions due to resource limitations and positive market feedback [73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of Gemini II, particularly in defense applications, and highlighted the importance of low power consumption [45] - The company is actively engaging with strategic partners for the PLATO chip, which is expected to tape out in early calendar 2027 [13] - Management noted that the recent Cornell University validation of their technology has generated increased interest from potential customers [86] Other Important Information - The company closed a $50 million equity financing to accelerate execution across hardware and software development [5] - The company had $25.3 million in cash and cash equivalents as of September 30, 2025, compared to $13.4 million at the end of the previous quarter [20] Q&A Session Summary Question: Has the company done any work with the auto industry on autonomous vehicles? - The company has not yet engaged with the auto industry but sees potential for future adaptation of their technology in that space [23] Question: Was the recent $50 million placement with a strategic investor? - The placement was not with a strategic investor and there is no required holding period for the shares [26] Question: Is there a plan to have Cornell validate the Gemini II technology? - Discussions are ongoing to get a Gemini II board to Cornell and other researchers for validation [30] Question: How is the company differentiating its APU versus GPU competitors? - The company emphasizes its low power consumption and competitive performance metrics compared to NVIDIA GPUs [45] Question: What is the total addressable market the company is looking at over the next five years? - The market is expected to be in the tens of billions, with the company well-positioned to address it due to its power profile and algorithm work [53] Question: How will the $50 million raise be allocated? - The allocation will include fixed costs for PLATO and will be distributed evenly between Gemini II and PLATO development [59]

Core Insights - GSI Technology's Associative Processing Unit (APU) has been validated by Cornell University researchers, demonstrating that its Compute-In-Memory (CIM) architecture can achieve GPU-level performance for large-scale AI applications while significantly reducing energy consumption [1][2][3] Group 1: Performance and Efficiency - The APU delivers GPU-class performance at a fraction of the energy cost, with over 98% lower energy consumption compared to GPUs on large datasets [2][6] - The APU's design allows it to perform retrieval tasks several times faster than standard CPUs, reducing total processing time by up to 80% [6] Group 2: Market Opportunities - The findings indicate substantial opportunities for GSI Technology as industries increasingly seek performance-per-watt improvements, particularly in Edge AI applications for robotics, drones, and IoT devices [3] - The APU is positioned to serve defense and aerospace applications where high performance is required under strict energy and cooling constraints [3] Group 3: Future Developments - GSI Technology's second-generation APU, Gemini-II, is expected to deliver approximately 10 times faster throughput and lower latency for memory-intensive AI workloads, further enhancing energy efficiency [4] - The upcoming Plato APU aims to provide even greater compute capability at lower power for embedded edge applications [4] Group 4: Research Validation - The Cornell study represents one of the first comprehensive evaluations of a commercial compute-in-memory device under realistic workloads, benchmarking the GSI Gemini-I APU against established CPUs and GPUs [2][4]

Investment Rating - The report maintains a "Recommended" rating for the humanoid robot industry, indicating that the industry index is expected to outperform the benchmark index by more than 10% [28]. Core Insights - The humanoid robot concept index increased by 1.96% from July 6 to July 11, 2025, outperforming the CSI 300 index by 1.15 percentage points. Year-to-date, the humanoid robot index has risen by 38.26%, surpassing the CSI 300 index by 33.17 percentage points [2][12]. - The report highlights a significant acquisition by Zhiyuan Robotics, which announced plans to acquire a 63.62% stake in Shangwei New Materials for approximately 2 billion yuan. This acquisition is expected to be a landmark case for the humanoid intelligence sector on the Sci-Tech Innovation Board [5][24]. - The report emphasizes the rapid advancements in the humanoid robot sector, driven by increased financing, product innovation, and technological breakthroughs, suggesting that the trend towards humanoid intelligence is irreversible [5]. Weekly Market Review - The humanoid robot index saw the highest weekly gain from Haosen Intelligent (+31.10%) and the largest decline from Zhongjing Electronics (-13.78%) [17][18]. - The report notes that the Shanghai government is focusing on creating a demonstration area for various applications of artificial intelligence, with plans to establish a humanoid robot innovation center [20]. Weekly Hotspots Policy Developments - Shanghai has approved 82 large models for various applications, aiming to enhance AI integration across multiple sectors, including manufacturing and logistics [20]. - The West Lake District in Hangzhou is set to establish a humanoid robot pilot base, projected to generate over 10 billion yuan in industry output by the end of 2027 [21]. Product and Technology Iteration - Magic Atom launched the high-dynamic bipedal humanoid robot MagicBot Z1, which integrates high-performance reliability, an open AI ecosystem, and diverse application scenarios [21]. - Figure's CEO announced plans to triple the production of humanoid robots from July to September 2025 due to successful early progress in their manufacturing facility [21]. Investment and Financing - Several companies in the humanoid robot sector have secured significant funding, including Kuawei Intelligent, which completed several hundred million yuan in Series A financing, and Xinghai Map, which raised over 100 million USD in two rounds of financing [22][23]. - Zhiyuan Robotics' acquisition of Shangwei New Materials is highlighted as a major investment move within the industry [24]. Key Company Announcements - Shengshi Technology plans to participate in a public auction for humanoid robot assets in France, with a maximum investment of 28 million euros [26]. - Wanma Co. announced that its high polymer ultra-high voltage insulation material project will reach an annual production capacity of 60,000 tons upon completion [26].

Core Viewpoint - The acquisition of Aldebaran's core assets by Shengshi Technology for €900,000 (approximately ¥7.5 million) is seen as a strategic move that could reshape the global humanoid robot market, providing Shengshi with a well-known brand and technology heritage [1][2][4]. Summary by Sections Acquisition Details - Shengshi Technology successfully acquired Aldebaran's core assets, including the Nao, Pepper, and Plato robot series, along with technical documents, patents, trademarks, domain names, source code, designs, and inventory [1][2]. - The total investment for Shengshi, including debt repayment and operational costs in France, is expected to be no more than €28 million (approximately ¥234 million) [2]. Background of Aldebaran - Aldebaran, founded in 2005, was a pioneer in the commercialization of humanoid robots, achieving significant sales and recognition globally [2][4]. - The company faced financial difficulties, leading to multiple ownership changes, including acquisition by SoftBank and later by the German URG, ultimately resulting in bankruptcy due to high operational costs and market challenges [4]. Strategic Rationale for Acquisition - Shengshi Technology aims to fill a critical gap in humanoid robotics, leveraging its existing expertise in AI and robotics to enhance its product offerings [5][7]. - The acquisition is viewed as a way to gain access to a mature platform, brand recognition, and technology, facilitating a faster entry into the humanoid robot market [5][7]. Future Prospects - The integration of Aldebaran's technology with Shengshi's AI capabilities is expected to create significant synergies, potentially expanding into various human-robot interaction scenarios [8][10]. - Aldebaran's brand recognition in Europe and globally is anticipated to serve as a key entry point for Shengshi into international markets, complementing its existing presence in regions like the Middle East and Africa [8][12]. Market Context - The Chinese robot market is projected to grow rapidly, with an expected annual growth rate of 23%, potentially doubling in size over the next four years [12]. - China currently holds a significant share of the global robot market, with a leading position in humanoid robot patents and product releases [12][14].

Company Overview - GSI Technology was established in 1995 and had its IPO in 2007[7] - The company has invested $150 million into APU development[7] - GSI Technology has 148 employees worldwide, with 86 dedicated to APU[6] - Insider ownership is at 27%[6] Financial Performance - FY 2025 annual revenue reached $205 million[6] - Cash and cash equivalents totaled $134 million as of March 31, 2025[6] - The company's market capitalization is $942 million[6] - Strategic cost-cutting is expected to generate annualized savings of approximately $35 million[39] - The sale and lease-back of Sunnyvale, CA HQ generated $113 million[39] Market and Product Strategy - The AI semiconductor TAM is projected to reach $312 billion by 2029[15] - The space semiconductor TAM is expected to grow to $48 billion by 2032[14] - GSI is targeting a >$100 million annual market opportunity in radiation-tolerant applications, with ASP up to $30K and 90%+ gross margin[18] - APU reduces operating costs by 80% and power usage by 90% compared to traditional solutions based on AWS benchmark with 1 Billion Dataset[29]

Core Viewpoint - GSI Technology, Inc. reported a significant improvement in its financial performance for the fourth fiscal quarter and the fiscal year ended March 31, 2025, with increased revenues and reduced net losses, driven by strong demand for its legacy SRAM chips and effective cost management [1][4]. Financial Performance Summary - **Fourth Quarter Results**: - Net revenues reached $5.9 million, a 14% increase year-over-year and a 9% increase sequentially [4][9]. - Gross margin improved to 56.1%, up from 51.6% in the same quarter last year [9]. - Operating loss was $(2.3) million, a reduction from $(4.5) million in the prior year [12]. - Net loss was $(2.2) million, or $(0.09) per diluted share, compared to $(4.3) million, or $(0.17) per diluted share, in the fourth quarter of fiscal 2024 [13]. - **Fiscal Year 2025 Results**: - Total net revenues for the fiscal year were $20.5 million, down from $21.8 million in fiscal 2024 [5]. - Gross margin for the year was 49.4%, compared to 54.3% in the previous year, primarily due to product mix and fixed costs [5]. - Operating expenses decreased to $21.0 million from $32.3 million in fiscal 2024, with R&D expenses reduced to $16.0 million from $21.7 million [6]. - The net loss for the fiscal year was $(10.6) million, or $(0.42) per diluted share, compared to $(20.1) million, or $(0.80) per diluted share, in fiscal 2024 [8]. Strategic Developments - The company secured an initial order for radiation-hardened SRAM from a North American prime contractor, with expectations for follow-on orders in fiscal 2026, which are anticipated to have a higher gross margin [4]. - GSI Technology is pursuing heritage status for its radiation-hardened SRAM, which will enhance market readiness and open new sales channels [4]. - The company is on track to deliver production-ready Gemini-II chips and Leda-2 boards by the end of the first quarter of fiscal 2026, with ongoing SBIR programs with the Space Development Agency and US Air Force Research Laboratory [4]. Cash and Equity Position - As of March 31, 2025, the company had $13.4 million in cash and cash equivalents, down from $14.4 million a year earlier [14]. - Working capital decreased to $16.4 million from $24.7 million at the same time last year, and stockholders' equity was $28.2 million, down from $36.0 million [14].