Want to see SIMO full AI Analyst Report?
Top Page
Silicon Motion
(NASDAQ:SIMO)
Select Model
Select Model
Rating:69Neutral
Price Target:
$238.00
▼(-1.58% Downside)
Action:Downgraded
Date:08/01/26
The score is primarily supported by strong profitability and a conservative balance sheet, plus a very upbeat earnings outlook with accelerating revenue and margin guidance. Offsetting these positives are weak TTM cash conversion (negative operating and free cash flow) and unfavorable short-term technicals with the stock trading below its 20- and 50-day moving averages; valuation is reasonable but not enough to fully counter the cash-flow and trend risks.
Positive Factors
Accelerating revenue and margin expansion
Rapid revenue growth accompanied by gross margins above 50% and expanding operating margins indicates strong current demand and operating leverage. If management’s 2026 outlook holds, the higher-growth product mix should improve earnings power and provide resources for continued investment over the next several quarters.
Negative Factors
Negative operating and free cash flow
Negative operating and free cash flow weaken the quality of reported earnings and indicate that working-capital movements or investment needs are absorbing cash. Persistent pressure would reduce internally funded flexibility, constrain capital returns, and make the strong earnings trajectory less supportive of liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue and margin expansion
Rapid revenue growth accompanied by gross margins above 50% and expanding operating margins indicates strong current demand and operating leverage. If management’s 2026 outlook holds, the higher-growth product mix should improve earnings power and provide resources for continued investment over the next several quarters.
Read all positive factors
Silicon Motion (SIMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.25B
Dividend Yield0.9%
Average Volume (3M)758.44K
Price to Earnings (P/E)6.5
Beta (1Y)2.13
Revenue Growth69.56%
EPS Growth260.84%
CountryUS
Employees2,009
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)34.32
Shares Outstanding33,908,234
10 Day Avg. Volume804,880
30 Day Avg. Volume758,440
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)0.94
Price to Sales (P/S)0.88
P/FCF Ratio123.55
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue8.55
Enterprise Value/Gross Profit17.50
Enterprise Value/Ebitda38.72
Forecast
1Y Price Target
$366.25Price Target Upside51.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)11.19
Revenue Forecast (FY)$1.87B
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 NAND flash controller integrated circuits (ICs) and accompanying firmware/software IP that enable data to be stored, managed, corrected, and moved reliably on NAND flash memory. Its revenue model is ...
Silicon Motion Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed broad-based strength: record revenue, gross margins above 50%, robust segment-level growth (notably Ferri/Boot Drive and edge SSDs), and a clear multi-year growth roadmap with MonTitan and next-gen controllers. Headwinds center on industry-wide NAND/DRAM supply constraints, delayed high-density QLC availability, and some end-market softness (smartphones and PCs). Management provided confident near-term guidance (Q3 revenue and margin expansion) and reiterated expectations to more than double 2026 revenue and achieve >30% operating margins exiting the year. On balance, the positives — outsized revenue beats, margin expansion, rapid growth in high-ASP solution segments, and visible enterprise/AI ramp — outweigh the supply-related and macro lowlights.Positive Updates
Record Revenue and Strong Top-Line Growth
Q2 revenue of $451.0M, a sequential increase of 32% and year-over-year increase of 127%, marking the third consecutive quarter of record revenue. Company expects 2026 revenue to more than double year-over-year (>$100% YoY) and Q3 revenue guidance of $519M–$541M (up 15%–20% sequentially).
Negative Updates
Memory and NAND Supply Constraints and Pricing Pressure
Management expects NAND supply scarcity and elevated NAND/DRAM prices to persist likely until 2028 as new fabs come online; these shortages and price increases are pressuring OEM BOMs (notably low-end smartphones and PCs) and slowing some transitions in the market.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Q2 revenue of $451.0M, a sequential increase of 32% and year-over-year increase of 127%, marking the third consecutive quarter of record revenue. Company expects 2026 revenue to more than double year-over-year (>$100% YoY) and Q3 revenue guidance of $519M–$541M (up 15%–20% sequentially).
Read all positive updates
Company Guidance
Silicon Motion guided Q3 2026 revenue of $519–$541 million (up 15–20% sequentially), gross margin of 50–51%, operating margin of 27.5–28.5%, an effective tax rate of ~22%, and stock‑based compensation/dispute expenses of $14.9–$15.9 million; management reiterated 2026 will be a record year with revenue expected to more than double YoY (>100% growth) and said they expect to exit the year with operating margins above 30% while MonTitan enterprise SSDs should contribute roughly 5–10% of revenue exiting 2026.Silicon Motion Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.31B | 885.63M | 803.55M | 639.14M | 945.92M | 922.10M |
| Gross Profit | 641.93M | 427.51M | 368.76M | 270.39M | 465.83M | 460.80M |
| EBITDA | 290.13M | 170.30M | 132.74M | 83.04M | 231.58M | 264.42M |
| Net Income | 289.77M | 122.71M | 89.25M | 52.87M | 172.51M | 200.00M |
Balance Sheet | ||||||
| Total Assets | 1.61B | 1.22B | 1.03B | 1.01B | 961.25M | 971.33M |
| Cash, Cash Equivalents and Short-Term Investments | 74.37M | 201.84M | 276.07M | 314.30M | 232.18M | 360.08M |
| Total Debt | 59.18M | 0.00 | 2.53M | 2.34M | 3.20M | 2.90M |
| Total Liabilities | 558.38M | 390.27M | 259.12M | 273.26M | 228.65M | 313.75M |
| Stockholders Equity | 1.05B | 830.74M | 773.75M | 734.70M | 732.60M | 657.58M |
Cash Flow | ||||||
| Free Cash Flow | -120.45M | 6.29M | 32.74M | 98.77M | 50.95M | 150.04M |
| Operating Cash Flow | -66.64M | 61.36M | 77.09M | 149.08M | 83.89M | 174.70M |
| Investing Cash Flow | -26.07M | -27.40M | -44.09M | -49.09M | -32.94M | -28.16M |
| Financing Cash Flow | -8.15M | -91.51M | -67.25M | -16.69M | -183.10M | -99.73M |
Silicon Motion Technical Analysis
Negative
241.83
Price Trends
255.90
Negative
269.76
Negative
210.44
Positive
Market Momentum
-12.66
Positive
32.40
Neutral
11.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIMO, the sentiment is Negative. The current price of 241.83 is below the 20-day moving average (MA) of 258.73, below the 50-day MA of 255.90, and above the 200-day MA of 210.44, indicating a neutral trend. The MACD of -12.66 indicates Positive momentum. The RSI at 32.40 is Neutral, neither overbought nor oversold. The STOCH value of 11.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.03T | 12.13 | 91.77% | 0.06% | 256.33% | 884.73% | |
81 Outperform | $214.63B | 80.27 | 16.22% | 0.10% | 30.62% | ― | |
79 Outperform | $672.92B | 5.65 | 100.17% | 0.01% | 134.05% | 421.22% | |
78 Outperform | $1.60T | 41.91 | 43.91% | 0.77% | 48.69% | 99.97% | |
69 Neutral | $7.25B | 6.48 | 32.04% | 0.90% | 69.56% | 260.84% | |
63 Neutral | $41.19B | 106.90 | 6.90% | 2.36% | 20.93% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
SIMO
Silicon Motion
222.30
131.36
144.44%
AVGO
Broadcom
337.80
0.01
<0.01%
MRVL
Marvell
244.76
163.85
202.50%
MCHP
Microchip
77.15
14.30
22.75%
MU
Micron
913.67
715.43
360.88%
SKHY
SK Hynix
143.25
-24.76
-14.74%
Silicon Motion Corporate Events
Silicon Motion Raises Annual Dividend 15% After Strong Multi-Year Performance
Oct 16, 2026
On October 16, 2026, Silicon Motion announced a 15% increase in its annual cash dividend to $2.30 per American Depositary Share, up from $2.00 in 2025, reflecting three years of strong financial performance. The dividend will be distributed in fou...
Silicon Motion Sets October 29 Conference Call for Q3 2026 Results
Oct 8, 2026
Silicon Motion Technology Corporation announced on October 8, 2026, that it will release its third quarter 2026 financial results after the market closes on October 28, 2026. The company will host an earnings conference call on October 29, 2026, a...
Silicon Motion Shareholders Approve Director Re-elections and Auditor at 2026 AGM
Sep 22, 2026
Silicon Motion Technology Corporation held its 2026 Annual General Meeting of Shareholders on September 22, 2026, with 135,372,262 of 135,632,940 issued ordinary shares represented in person or by proxy, establishing a quorum. Shareholders voted o...
Silicon Motion Closes $1.15 Billion Zero-Coupon Convertible Notes Offering
Aug 14, 2026
On August 13, 2026, Silicon Motion Technology Corporation closed a private offering of $1.15 billion aggregate principal amount of 0.00% Convertible Senior Notes due 2031 to qualified institutional buyers under Rule 144A. The issuance, which inclu...
Silicon Motion Prices Upsized $1 Billion Zero-Coupon Convertible Notes Due 2031
Aug 11, 2026
On August 10, 2026, Silicon Motion Technology Corporation priced an upsized private offering of $1.0 billion aggregate principal amount of 0.00% convertible senior notes due 2031 to qualified institutional buyers under Rule 144A, increasing the de...
Silicon Motion Unveils $800 Million Zero-Coupon Convertible Notes Offering Due 2031
Aug 10, 2026
On August 10, 2026, Silicon Motion Technology Corporation announced an opportunistic capital-raising plan via a private offering of $800 million in 0.00% convertible senior notes due 2031 to qualified institutional buyers under Rule 144A, with an ...
Silicon Motion Posts Record Q2 2026 Revenue as AI-Focused Storage Shift Pays Off
Jul 30, 2026
Silicon Motion reported strong financial results for the quarter ended June 30, 2026, with net sales rising to $451.0 million, up 32% sequentially and 127% year-on-year, and GAAP diluted EPS climbing to $3.99. Gross margin improved to 50.2% and op...
Silicon Motion Confirms Next Quarterly Dividend in Ongoing $2.00 per ADS Payout Program
Jul 24, 2026
Silicon Motion Technology Corporation confirmed on July 24, 2026 that it will proceed with the next installment of its previously declared annual cash dividend program. The company’s board had approved on October 27, 2025 an annual dividend ...
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.