A previously unknown name may be the next meme stock. Many people hadn’t heard of GSI Technology (NASDAQ:GSIT) stock when markets closed on Thursday, May 11. Nonetheless, shares began surging on the following day, ending the week far above where they had started.
Today, GSIT stock has powered up even further, demonstrating impressive gains in both pre-market and intraday trading. In just two days, GSI Technology has moved comfortably above penny stock levels. The fact it hasn’t reported any company-specific catalysts also suggests this sudden winning streak has been driven by meme stock momentum.
Does this mean that retail investors have found their latest favorite? Let’s take a closer look at GSIT stock and assess what investors need to know.
What’s Happening With GSIT Stock?
As of this writing, GSIT stock is up more than 30% for the day and looks primed to rise even further. But what’s far more impressive is how much it has climbed in the past few days. Shares are currently up more than 300% for the past five days. Most of this climb happened in just the past two. This winning streak has taken GSIT from trading at $1.64 per share on Thursday to the current price of more than $6.
What exactly is this company? GSI Technologies is based out of Sunnyvale, California and manufactures SRAM (static random access memory) semiconductor memory solutions. This makes sense, as chip companies are still dominating tech markets. However, throughout the semiconductor boom, GSIT stock didn’t garner much attention before. Now, though, it appears to have certainly caught the attention of the r/WallStreetBets crowd. MarketWatch reports:
“An influential meme stock trader, who goes by the name Obi and participates in the WallStreetBets group on Reddit as Major-Access2321, told MarketWatch that he sees meme-like parallels between GSI Technology and Top Financial Group Ltd. TOP, -7.23%. The Hong Kong-based trading firm’s stock skyrocketed more than 890% last month, before pulling back.”
Influential meme trader Obi also recently warned that popular meme stock Mullen Automotive (NASDAQ:MULN) had a new investor army behind it. If GSI’s gains continue, however, it may surpass Mullen and become the market’s new meme sensation.
Of course, that doesn’t make GSIT stock a buy right now. Investors should keep in mind that the company has a history of weak sales growth and revenue, even as demand for semiconductors has surged.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.