Corsair Gaming (CRSR) Stock Forecast & Price Target

Corsair Gaming Inc. has demonstrated strong financial performance in its Gaming Components & Systems segment, achieving a year-over-year revenue growth of 20% in the first half of 2025, with notable contributions from both performance memory and other components. The company has reported a significant improvement in gross margin, reaching 26.9%, which is the highest since 2020, reflecting effective cost management and operational leverage, despite a slight revenue shortfall. With an expected tailwind for sales in the Gaming Components & Systems segment projected to continue growing by 20% year-over-year into 2025, Corsair is well-positioned to capitalize on the ongoing expansion of the global video game industry, valued at over $180 billion.

Corsair Gaming Inc. has faced inconsistent top-line results and a lack of operating leverage, contributing to margin degradation, with product development and SG&A costs comprising nearly 30% of revenue last year. The company’s AEBITDA margin has declined to 4.2% in 2024, down 230 basis points year-over-year and significantly below its 10-year average of 7.2%. Furthermore, forecasted growth in the gaming hardware market is coupled with a projected decline in entry-level PC gaming participants by 13% over the next five years, raising concerns about the company's ability to retain market share and manage competitive pressures effectively.