Silicon Motion price target lowered to $65 from $78 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Silicon Motion to $65 from $78 and keeps an Overweight rating on the shares. While memory is still moving higher, the rate of change is approaching a peak as supply catches up to demand, according to the firm, which notes that its cycle indicator has shifted out of “late-cycle” to “peak-cycle” for the first time since 2021. This phase-change has historically meant a challenging backdrop for forward returns in the memory semi group, the analyst added. The firm’s belief is that the next cyclical downturn will begin in 2025 and DRAM will stay oversupplied through 2026, exacerbated by inventory buildup, the analyst tells investors.