SemiFive handles the entire process of building custom AI and system chips for its customers, from defining the specification through design, prototyping, packaging and testing. It earns money from design services, mass-production supply, and design-IP licensing through its subsidiary Analog Bits, with clients such as Hanwha Vision, FuriosaAI and Rebellions and rapidly growing sales in North America and Japan. In Q1 2026 revenue rose 137% and the company swung to a profit, it signed a single sales and supply contract in May, and by its own account it has 14 global customers with 59 more in negotiation, having set up a Japanese subsidiary in November 2025. What stands out lately is that the 137% revenue jump and the swing to profit, the expansion from design into recurring mass-production revenue, and a net-cash balance sheet are all strengths, but the company has only just crossed break-even so profits are thin and swing sharply from quarter to quarter, and the key thing to watch is whether earnings keep growing steadily each quarter.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue rose 8.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 136.8% higher than a year earlier.
- ROE is -25.5% (controlling-interest basis). It is below the sector average.
- Operating margin is -44.1%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder SiFive, Inc. 14.77% (corporate)
Controlling bloc incl. related parties 20.08%
With the controlling bloc holding 20%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- SemiFive designs custom AI and system chips on behalf of its customers.
- It does not own its own semiconductor fabs (foundries); instead it takes on the whole process, from defining a chip's specification through design, prototyping, packaging and testing.
- It makes money in three ways.
- First, design services (development work): it develops customers' chips for a fee.
- Second, mass-production supply: it has the chips it developed manufactured at a foundry and delivered to the customer, generating longer-term revenue.
- Third, design-IP licensing revenue through its subsidiary Analog Bits.
- Its customers include domestic and overseas AI-chip companies such as Hanwha Vision, FuriosaAI and Rebellions.
- Recently, sales in North America and Japan have been growing quickly.
- The latest close is ₩18,780 and the market cap is ₩639.0 billion.
- The price sits below both the 20-day line (₩22,540) and the 60-day line (₩32,417).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 32.7, a neutral level.
- The one-month change is -28.7%, the three-month change is -18.5%, and the price is -61.5% from its 52-week high.
- Relative strength versus the KOSDAQ is 51 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 49% of all stocks by strength.
- Over the past three months it edged out the index by 1.9%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The financials are typical of an early-growth company.
- On a full-year 2025 basis it was still loss-making.
- ROE (how much a company earns in a year on its equity) was -25.5% and the operating margin was -44.1%.
- As a result, a P/E ratio based on last year's earnings cannot be calculated because earnings were negative.
- The P/B ratio is 2.90x and the P/S ratio is 5.43x.
- The coffers, however, are ample.
- Net debt (total borrowings minus cash; negative means net cash) is roughly -₩64.9 billion, a net-cash position with more cash than debt.
- This reflects the funds raised through the listing.
- The debt ratio (debt relative to equity) is 140% and the current ratio is 230%, so short-term solvency is stable.
- Because it is not yet generating cash, the FCF yield (cash actually generated relative to market cap) is -1.7%, slightly negative.
- As a loss-making company, it is hard to judge valuation from last year's figures alone.
- The earnings trajectory after the swing to profit is what matters.
- The direction of growth is clear.
- Revenue rose for three straight years: ₩71.3 billion in 2023, ₩111.8 billion in 2024 and ₩121.0 billion in 2025.
- The 2025 growth rate of 8.2% slowed from the prior year (56.8%).
- The real change came in 2026.
- Q1 2026 revenue was ₩47.9 billion, a 137% surge from ₩20.2 billion a year earlier and a record high on a quarterly basis.
- In the same quarter both operating profit and net profit turned positive.
- In effect, the swing to profit in 2026 that the company flagged at the time of its listing was confirmed in the results from the very first quarter.
- The growth momentum comes from two places.
- First, the share of revenue from the most advanced 2nm-4nm processes climbed sharply from 5% in 2022 to 41.4% in Q3 2025, so high-value projects are increasing.
- Second, revenue that used to end at the design stage is now carrying through to mass-production supply, so recurring, longer-term revenue is starting to accumulate.
- New orders in Q1 alone came to ₩55.4 billion.
- New mass-production orders already reached 74% of last year's full-year mass-production order value.
- That said, because it has only just crossed break-even, quarterly earnings can swing widely.
- Recent developments center on results and orders.
- The Q1 2026 results confirmed a 137% revenue increase and a swing to profit.
- This was followed in May by a disclosure of a single sales and supply contract.
- It can be seen as a case of the contract structure - having developed chips mass-produced at a foundry and delivered - feeding through to revenue.
- The company also held an investor briefing (IR) in May to share the state of its business.
- By the company's official account, it has 14 global customers with 59 more in negotiation.
- In November 2025 it set up a Japanese subsidiary, continuing its overseas expansion.
- Going forward, mass-production projects such as AI security-camera chips and data-center AI chips are set to be reflected in revenue in sequence.
- Let us separate the strengths from the cautions.
- There are three strengths.
- First, an inflection in results has actually appeared: in Q1 2026 revenue rose 137% and the company swung to a profit.
- Second, the business is expanding from design services into mass-production supply, and recurring revenue is starting to accumulate.
- Third, being in a net-cash position, it has the financial capacity to keep funding growth investment.
- The cautions are just as clear.
- First, having only just crossed break-even, the scale of profit is still thin and can swing sharply from quarter to quarter.
- Second, on last year's earnings it was loss-making, so it is hard to measure value with a traditional P/E or P/B.
- Ultimately it comes down to how steadily profits grow from here.
- Third, results are tied to AI-chip demand and to the most advanced foundry process volumes, so they are exposed to swings in the industry cycle.
- In sum, the direction of the swing to profit has been confirmed.
- The key thing to watch is the phase in which it becomes clear whether that profit keeps growing steadily each quarter.
🔎 Valuation vs peers Inconclusive
Compared against listed companies in the semiconductor design-services and system-semiconductor design-house and design-IP businesses.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| AD Technology | 132.33x | 3.52x | 2.66% |
| Chips&Media | 42.91x | 3.01x | 7.01% |
On last year's earnings the company was loss-making, so it is hard to measure SemiFive with a P/E ratio. That is the crux of what makes the valuation hard to judge. As the fact that peers in the same design and design-house group - AD Technology trading in the 90x P/E range and the design-IP company Chips&Media in the 50x range - shows, this field tends to reflect growth expectations in high multiples relative to earnings. SemiFive's P/B of 2.98x and P/S of 5.43x also embed this growth premium. The decisive variable, though, is that in Q1 2026 the company swung to a profit alongside a 137% revenue increase. It can be seen neither as expensive simply because last year was loss-making, nor as cheap on the strength of a single first quarter of profit. Because the direction of the valuation will only be set once it is confirmed whether profits keep growing steadily each quarter, we hold judgment at this point.
Price history Close · MA20 · MA60
The latest close is ₩18,780 and the market capitalization is ₩639.0 billion. The price sits below its 20-day moving average (₩22,540) and below its 60-day moving average (₩32,417). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 32.7, a neutral level. The one-month change is -28.7%, the three-month change is -18.5%, and the position relative to the 52-week high is -61.5%. Relative strength versus the KOSDAQ is 51 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 52% of all stocks. Over the past three months it outpaced the index by 1.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +1.89% / 6M -25.01% / 12M -20.22%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 2.90x is above the sector median (1.99x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -25.5%, below the sector average (4.0%). The operating margin is -44.1%. The debt ratio is 140.2%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $47.3M | $74.1M | $80.2M | +8.17% ↓ slower |
| Operating profit | -$21.2M | -$15.2M | -$35.4M | — |
| Net profit | -$57.1M | -$192.8M | -$37.3M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $47.3M | $74.1M | $80.2M |
| Operating profit | — | — | -$21.2M | -$15.2M | -$35.4M |
| Net profit | — | — | -$57.1M | -$192.8M | -$37.3M |
| Revenue CAGR | 2-yr avg 30.23% | ||||
Revenue rose 8.2% year over year (2023 ₩71.3 billion → 2024 ₩111.8 billion → 2025 ₩121.0 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 3 years on record, revenue compound annual growth (CAGR) is 30.2%. The two-year revenue CAGR is 30.2%. In the most recent quarter (Q1 2026), revenue was 136.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue rose 8.2% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-20UpdateDisclosure of a single sales and supply contract. Under this contract developed chips are connected to foundry mass production and delivered, providing a basis for expanding mass-production supply revenue.Over the medium term, it supports a mass-production pipeline that extends beyond design services into recurring, longer-term revenue. Source
- 2026-05-15EarningsQ1 2026 report. Revenue of ₩47.9 billion, up 137% from ₩20.2 billion a year earlier, with operating and net profit both turning positive.A near-term positive as the swing to profit in 2026 flagged at the listing was confirmed in the results from the very first quarter. Source
- 2026-05-14IRInvestor briefing (IR) held. The company explained the state of its business to the market, including Q1 results and progress on mass production and overseas expansion.In a phase of surging results, it serves as a communication channel to formally convey the direction of the business and the order situation. Source
- 2025-12-29FilingNew listing on the KOSDAQ market. The offering price was set at ₩24,000, the top of the indicated band, and the proceeds are used to secure engineering staff and advanced technology and design IP.The listing put the company in a net-cash position, securing capacity for growth investment. The current price is below the offering price. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | ₩47.9 billion | ₩47.9 billion | Confirmed | link |
| Q1 2026 swing to net profit | net profit +₩1.3 billion, operating profit +₩0.1 billion | 1 | Confirmed | link |
| Offering price and listing date | ₩19,310 (base) | ₩24,000, 2025-12-29 | Confirmed | link |
| Estimated full-year 2026 net profit | — | — | Unverified | link |
Recent filings
- 2026-05-20Single supply/sales contract
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.