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. The firm believes Silicon Motionis becoming an AI play as new product design wins targeted at edge AI applications should boost revenues significantly exiting 2024 and into 2025. Silicon Motion is now sampling its enterprise chip solution to 12 customers within the data center and hyperscaler space, with already one design win and another expected to come the second half of 2024. Craig-Hallum highlights the company’s MonTitan enterprise solution is attractive vs peers as it offers higher performance at lower power consumption and ties in QLC support, which Silicon has extensive experience with. The firm believes revenues are slated for exponential growth in 2025 and 2026 as Silicon establishes itself as a strong edge AI play.