Rosen Law Firm Investigates GSI Technology Inc. Over Possible Securities Fraud Allegations

In a significant development for investors, the Rosen Law Firm, a prominent global legal entity focused on rights for investors, has initiated an investigation concerning potential securities claims on behalf of shareholders of GSI Technology Inc. (NASDAQ: GSIT). The implications of this inquiry stem from allegations suggesting that GSI Technology may have disseminated misleading business information to the public, a situation that could have serious ramifications for current and prospective investors.

Understanding the Allegations

As of February 3, 2026, concerns have escalated following claims posted on the investment community platform, Stockwits. The post alleged that GSI Technology may be concealing the fact that their chip did not successfully run the Gemma-3 algorithm as previously asserted, but instead only functioned during the earlier RAG phase. This insinuation raises questions regarding the chip's performance capacity, particularly in its apparent inability to support matrix multiplication, a critical feature necessary for handling advanced AI workloads.

The fallout from this revelation was swift: on February 4, GSI Technology’s stock saw a significant decline, dropping $1.08 or nearly 14.2%, to close at $6.52 per share. This drastic change has fueled the urgency for affected shareholders to seek recourse through potential class action litigation.

What It Means for Investors

For investors who purchased securities in GSI Technology, there may be a pathway to compensation without incurring direct costs, as the Rosen Law Firm operates on a contingency fee basis. This means victims of the alleged misleading information may recover losses sustained during this turbulent period in the market.

Prospective claimants are encouraged to join the class action by visiting the firm’s dedicated website or reaching out directly to attorney Phillip Kim at 866-767-3653 or via email for further information regarding the class action procedures. The firm emphasizes the value of understanding one’s legal rights in this context.

The Importance of Choosing the Right Legal Counsel

The Rosen Law Firm is renowned in the legal community for its expertise in securities class actions and shareholder derivative litigation. Notably, the firm has a strong track record, having achieved record settlements in high-profile cases, including one noted as the largest ever against a Chinese company. In 2017 alone, the firm was recognized as having the highest number of securities class action settlements. With accolades for its attorneys such as Laurence Rosen being termed a