Why GCT Semiconductor Stock Popped - Then Dropped - After Its Satellite Deal

GCT Semiconductor Holding Inc. (NYSE:GCTS) shares fell 7.94% to $1.16 in after-hours trading on Thursday following the announcement of a licensing agreement with a major satellite communications provider.

According to Benzinga Pro, the stock closed the regular session at $1.26, up 27.13%.

5G Chipset Deal Targets Direct-to-Satellite Applications

GCT Semiconductor announced on Thursday that it licensed its 5G and 4G chipsets to one of the world’s largest satellite communications providers for integration into user equipment.

The company noted that the agreement enables global connectivity via satellite and terrestrial networks.

Shipments of 5G products are expected to begin in the second half of 2026.

John Schlaefer, CEO of the California-based fabless semiconductor company, said, “This collaboration positions both companies at the forefront of emerging and growing 5G-to-space networks that aim to deliver coverage globally, including underserved regions.”

According to the company’s official announcement, GCT Semiconductor will provide access to its chipset portfolio for use in multiple user devices, offering a complete product line for all use cases.

Trading Metrics, Technical Analysis

GCT Semiconductor has a market capitalization of $72.03 million and is trading between a 52-week low of $0.90 and a high of $2.47. Its Relative Strength Index (RSI) stands at 58.80.

Over the past 12 months, GCTS stock has seen a decline of 44.74%.

Currently, the stock is trading at about 22.93% of its 52-week range, placing it closer to its low than its high.

The considerable decline and weak positioning suggest that any recovery would need clear confirmation before investors make significant moves.

In January, HC Wainwright & Co. reiterated its Buy rating on GCT Semiconductor, setting a $3 price target, which represents a 158.62% upside potential from after-hours prices.

Benzinga’s Edge Stock Rankings indicate that GCTS has a negative price trend across all time frames.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.