Silicon Motion price target raised to $80 from $75 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Silicon Motion to $80 from $75 and keeps a Buy rating on the shares post the Q4 report. The company expects to continue to gradually increase gross margins moving forward as it slowly works back to the 48%-50% levels, likely in early 2025, the analyst tells investors in a research note. The firm believes Silicon Motion is becoming an artificial intelligence play, saying new product design wins targeted at edge AI applications should boost revenues significantly exiting 2024 and into 2025. Hallum believes the company’s revenues are slated for “exponential growth” in 2025 and 2026 as Silicon Motion establishes itself “as a strong edge AI play.”