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Silicon Motion
(NASDAQ:SIMO)
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Rating:72Outperform
Price Target:
$362.00
▲(159.11% Upside)
Action:Reiterated
Date:06/04/26
The score is driven primarily by strong balance-sheet quality and an upbeat earnings outlook with guided growth and margin expansion. These positives are tempered by the biggest fundamental risk—negative TTM operating and free cash flow—and by technically extended momentum signals that increase near-term pullback risk. Valuation is reasonable on earnings but supported less by yield.
Positive Factors
Very strong balance sheet (zero debt)
Zero reported debt and a debt-to-equity of 0.0 give Silicon Motion durable financial flexibility. That reduces bankruptcy and refinancing risk, enables sustained R&D and capacity investments, supports dividends/returns and cushions cyclicality in NAND/SSD demand over the medium term.
Negative Factors
Negative operating and free cash flow
A reversal to negative operating and free cash flow weakens cash durability: it forces reliance on existing cash balances or external financing for working capital, R&D and customer ramps. Persistently weak cash conversion can constrain capital returns and limit strategic optionality over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong balance sheet (zero debt)
Zero reported debt and a debt-to-equity of 0.0 give Silicon Motion durable financial flexibility. That reduces bankruptcy and refinancing risk, enables sustained R&D and capacity investments, supports dividends/returns and cushions cyclicality in NAND/SSD demand over the medium term.
Read all positive factors
Silicon Motion (SIMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.14B
Dividend Yield2.22%
Average Volume (3M)825.07K
Price to Earnings (P/E)13.5
Beta (1Y)2.08
Revenue Growth36.05%
EPS Growth80.83%
CountryUS
Employees2,009
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)20.24
Shares Outstanding33,907,833
10 Day Avg. Volume594,384
30 Day Avg. Volume825,070
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)0.94
Price to Sales (P/S)0.88
P/FCF Ratio123.89
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$310.71Price Target Upside122.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)8.88
Revenue Forecast (FY)$1.64B
Silicon Motion Business Overview & Revenue Model
Company Description
Silicon Motion Technology Corporation (SIMO) is a prominent company specializing in the design, development, and distribution of NAND flash controllers, which are essential components for a wide array of solid-state storage devices. Their product ...
How the Company Makes Money
Silicon Motion makes money primarily by selling its controller ICs and related storage solution components to customers that manufacture SSDs and other NAND-flash-based storage products. Its core revenue stream is product revenue from NAND flash c...
Silicon Motion Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial narrative: record revenue, large YoY growth, expanding margins, explicit multi‑quarter sequential growth guidance, accelerating design wins and production ramps (MonTitan, boot drives, Ferri), and strategic NAND supplier relationships that help mitigate shortages. Notable risks remain — primarily severe NAND and DRAM supply/price pressure, elevated inventory and lower cash, delayed QLC availability, and component constraints — but management presented clear mitigation actions and confidence in securing supply and continuing share gains.Positive Updates
Record Quarterly Revenue and Strong Growth
Revenue of $342.1M in 1Q26, a sequential increase of 23% and a year-over-year increase of 105%, representing the company's highest quarterly revenue and coming in well above guidance.
Negative Updates
Severe Industry NAND Price and Supply Pressure
NAND prices rose sharply (management cited a sequential increase of ~55%–60% in 1Q26) and NAND/DRAM scarcity is expected to remain challenging through 2026 and 2027, pressuring end‑market unit volumes (smartphone and PC).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Growth
Revenue of $342.1M in 1Q26, a sequential increase of 23% and a year-over-year increase of 105%, representing the company's highest quarterly revenue and coming in well above guidance.
Read all positive updates
Company Guidance
Silicon Motion guided Q2 FY2026 revenue of $393M–$411M (implying ~15%–20% sequential growth), gross margin of 48.5%–49.5%, operating margin of 21%–22%, an effective tax rate of 19%, and stock‑based compensation/dispute expenses of $3.6M–$4.6M; management reiterated expectations for sequential growth throughout 2026 and a record‑revenue year with full‑year operating margin improving versus 2025 despite higher development spend. The guidance builds on 1Q26 results of $342.1M revenue (+23% QoQ, +105% YoY), 47.2% gross margin, 18.2% operating margin, EPS $1.58 and $210.9M cash (after a $16.9M dividend and inventory build); management also targets MonTitan to reach roughly 5%–10% of 2026 revenue, plans a PCIe‑6 MonTitan 4nm tape‑out in Q3, and stated ~50% gross margin is achievable.Silicon Motion Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
39
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06B | 885.63M | 803.55M | 639.14M | 945.92M | 922.10M |
| Gross Profit | 510.40M | 427.51M | 368.76M | 270.39M | 465.83M | 460.80M |
| EBITDA | 231.26M | 170.30M | 132.74M | 83.04M | 231.57M | 264.46M |
| Net Income | 169.97M | 122.71M | 89.25M | 52.87M | 172.51M | 200.00M |
Balance Sheet | ||||||
| Total Assets | 1.31B | 1.22B | 1.03B | 1.01B | 961.25M | 971.33M |
| Cash, Cash Equivalents and Short-Term Investments | 135.68M | 201.84M | 276.07M | 314.30M | 232.18M | 360.08M |
| Total Debt | 0.00 | 0.00 | 2.53M | 2.34M | 3.20M | 2.90M |
| Total Liabilities | 400.89M | 390.27M | 259.12M | 273.26M | 228.65M | 313.75M |
| Stockholders Equity | 906.12M | 830.74M | 773.75M | 734.70M | 732.60M | 657.58M |
Cash Flow | ||||||
| Free Cash Flow | -81.76M | 6.28M | 32.74M | 98.77M | 50.97M | 150.04M |
| Operating Cash Flow | -20.14M | 61.43M | 77.19M | 149.08M | 83.75M | 176.87M |
| Investing Cash Flow | -33.89M | -27.47M | -44.19M | -49.09M | -32.78M | -30.34M |
| Financing Cash Flow | -67.18M | -91.51M | -67.25M | -16.69M | -183.10M | -99.73M |
Silicon Motion Technical Analysis
Neutral
139.71
Price Trends
286.67
Negative
211.68
Positive
156.41
Positive
Market Momentum
0.82
Positive
41.17
Neutral
17.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIMO, the sentiment is Neutral. The current price of 139.71 is below the 20-day moving average (MA) of 311.42, below the 50-day MA of 286.67, and below the 200-day MA of 156.41, indicating a neutral trend. The MACD of 0.82 indicates Positive momentum. The RSI at 41.17 is Neutral, neither overbought nor oversold. The STOCH value of 17.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SIMO.
Silicon Motion Risk Analysis
Silicon Motion disclosed 37 risk factors in its most recent earnings report. Silicon Motion reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Silicon Motion Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $9.14B | 13.46 | 20.24% | 2.22% | 36.05% | 80.83% | |
72 Outperform | $3.89B | 233.27 | 2.44% | 2.27% | 3.11% | -54.05% | |
65 Neutral | $7.20B | -142.59 | -4.66% | ― | 25.14% | 70.00% | |
63 Neutral | $2.78B | -39.31 | -11.77% | ― | 28.12% | 34.98% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $4.51B | -93.94 | -3.47% | ― | 12.81% | -129.65% | |
57 Neutral | $4.39B | 147.66 | 1.37% | ― | 9.29% | ― |
* Technology Sector Average
SIMO
Silicon Motion
264.33
192.32
267.10%
IPGP
IPG Photonics
104.33
29.70
39.80%
POWI
Power Integrations
70.45
17.15
32.18%
SLAB
Silicon Laboratories
217.47
67.84
45.34%
SYNA
Synaptics
114.05
47.83
72.22%
AMBA
Ambarella
61.84
-7.54
-10.87%
Silicon Motion Corporate Events
Silicon Motion Sets Q2 2026 Earnings Release and Investor Call for Late July
Jul 8, 2026
Silicon Motion Technology Corporation announced on July 8, 2026 that it will release its second quarter 2026 financial results after the market closes on July 29, 2026, followed by an earnings conference call on July 30 at 8:00 a.m. Eastern Time. ...
Silicon Motion Posts Surging Q1 2026 Revenue on Embedded and AI-Linked Storage Demand
Apr 29, 2026
Silicon Motion reported strong first-quarter 2026 results on April 29, 2026, with net sales rising 23% sequentially and 105% year-on-year to $342.1 million, and GAAP earnings per diluted ADS increasing to $1.97. Growth was driven by surging demand...
Silicon Motion Confirms Next Quarterly Dividend Payment for May 21, 2026
Apr 24, 2026
Silicon Motion Technology Corporation, a leading designer of NAND flash controllers for solid-state storage serving server, PC, mobile, IoT, data-center, industrial and automotive markets, reiterated its position as a key supplier to major flash v...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.