The Rosen Law Firm has initiated an investigation into potential securities violations by GSI Technology Inc. (NASDAQ: GSIT) following allegations that the company made materially misleading statements regarding its chip capabilities. According to claims surfaced on February 3, 2026, GSI's chip does not possess the necessary specifications to execute Gemma-3 AI workloads as previously represented, specifically lacking the required MAC units needed for matrix multiplication operations.
The disclosure of these allegations resulted in significant market impact, with GSIT shares declining 14.2% to close at $6.52 per share on February 4, 2026. The substantial single-day decline reflects investor concern regarding the accuracy of the company's prior technical disclosures and product performance claims.
The Rosen Law Firm is currently evaluating potential class action litigation to address investor losses stemming from the alleged misrepresentations. Investors who experienced losses in GSIT securities are encouraged to contact the firm to discuss their legal rights and potential recovery options. The investigation is ongoing as the firm gathers evidence regarding the timeline and scope of the alleged misleading statements.