Silicom Ltd (SILC)
NASDAQ:SILC
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Silicom
(NASDAQ:SILC)
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Rating:62Neutral
Price Target:
$51.00
▲(77.70% Upside)
Action:Reiterated
Date:05/02/26
The score reflects solid balance-sheet resilience and a constructive near-term outlook from the latest call (raised guidance and design-win traction), partially offset by weak profitability/cash-flow consistency and a negative P/E. Technically, momentum is strong but appears overbought, adding near-term pullback risk.
Positive Factors
Strong balance sheet & liquidity
Silicom’s large liquidity position and no debt provide durable financial flexibility to fund inventory builds, R&D and customer ramps without near-term refinancing. This buffer supports multi-quarter product development and execution risk while the company pursues design wins and market expansion.
Negative Factors
Sustained multi‑year losses
Silicom’s persistent operating and net losses have eroded returns and equity, limiting self‑funded growth capacity. Continued losses increase reliance on cash reserves and make long‑term investor confidence contingent on achieving consistent margin improvement and positive operating cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet & liquidity
Silicom’s large liquidity position and no debt provide durable financial flexibility to fund inventory builds, R&D and customer ramps without near-term refinancing. This buffer supports multi-quarter product development and execution risk while the company pursues design wins and market expansion.
Read all positive factors
Silicom (SILC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$258.66M
Dividend YieldN/A
Average Volume (3M)20.95K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth14.63%
EPS Growth0.37%
CountryUS
Employees260
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-2.01
Shares Outstanding5,706,142
10 Day Avg. Volume18,089
30 Day Avg. Volume20,945
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)0.71
Price to Sales (P/S)1.35
P/FCF Ratio-25.05
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue3.80
Enterprise Value/Gross Profit12.43
Enterprise Value/Ebitda-20.80
Forecast
1Y Price Target
$28.00Price Target Upside-2.44% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.88
Revenue Forecast (FY)$82.58M
Silicom Business Overview & Revenue Model
Company Description
Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for a range of servers, server-based systems, and communications devices in the United States, North America, I...
How the Company Makes Money
Silicom primarily makes money by selling specialized networking hardware products to other businesses (B2B), typically as components or integrated platforms that customers incorporate into their own systems and branded solutions. Key revenue strea...
Silicom Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call communicated accelerating core revenue growth (Q1 revenue +33% YoY), strengthening design-win momentum with several material customer wins, improving operating and net loss metrics, and a strong balance sheet that supports inventory builds and investments. Key risks noted include ongoing inventory build-up to mitigate memory lead-time constraints, still-negative quarterly profitability (albeit improved), modest gross margin pressure, customer/geographic concentration, and timing uncertainty for AI inference revenue (expected more meaningfully in 2027). On balance, the positive operational momentum, upgraded guidance and tangible design wins significantly outweigh the highlighted risks.Positive Updates
Strong Revenue Growth
Total revenue of $19.1 million in Q1 2026, up 33% year-over-year (from $14.4M in Q1 2025). Management highlighted an acceleration in YoY growth from 17% in the prior quarter to 33% this quarter and noted the quarter was well ahead of guidance.
Negative Updates
Still Operating at a Loss
Despite improvements, the company remained unprofitable in Q1: operating loss of $1.9M and net loss of $1.5M (non-GAAP), with a negative EPS of $0.25.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenue of $19.1 million in Q1 2026, up 33% year-over-year (from $14.4M in Q1 2025). Management highlighted an acceleration in YoY growth from 17% in the prior quarter to 33% this quarter and noted the quarter was well ahead of guidance.
Read all positive updates
Company Guidance
Silicom guided second-quarter revenue of $20.0–$21.0 million (implying up to ~40% year‑over‑year growth at the high end) and full‑year 2026 revenue of $82–$83 million (≈33% YoY), following a strong Q1 print of $19.1 million (33% YoY) that materially exceeded prior midpoint guidance (which assumed ~18% YoY) and represented an acceleration from 17% YoY last quarter; management reaffirmed a 7–9 design‑win target for 2026 and has already secured 4, including a customer whose expected annual spend was more than doubled from ~$4M to $8–10M (with incremental revenue already in Q1), a Tier‑1 cybersecurity win with initial orders >$1M (expected to ramp to ~2x), a streaming customer initial >$1M order with 5‑year purchases forecast at $12M (and potential work that could more than double related networking revenues from the ~$25–30M range), and a European encryption design win of ~$3M per year with an initial ~$1M commitment (Silicom’s third post‑quantum cryptography win); Q1 non‑GAAP gross profit was $5.7M (30% gross margin), operating expenses $7.6M, operating loss $1.9M (improved from $2.4M a year ago), net loss $1.5M and loss per share $0.25 (vs $0.37), while the balance sheet shows working capital and marketable securities of ~$109M (including ~$63M inventory and ~$63M cash/marketable securities) with no debt and a 12‑month geographic mix of North America 76%, Europe & Israel 14%, Far East/ROW 10%.Silicom Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
74
Positive
Cash Flow
44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 61.93M | 58.11M | 124.13M | 150.58M | 128.46M |
| Gross Profit | 18.93M | 16.60M | 28.69M | 51.96M | 44.39M |
| EBITDA | -10.61M | -11.07M | -616.00K | 22.34M | 15.49M |
| Net Income | -11.48M | -13.71M | -26.41M | 18.31M | 10.54M |
Balance Sheet | |||||
| Total Assets | 152.52M | 150.41M | 167.73M | 216.20M | 219.60M |
| Cash, Cash Equivalents and Short-Term Investments | 48.11M | 72.14M | 54.93M | 34.75M | 37.55M |
| Total Debt | 10.52M | 6.47M | 5.95M | 7.84M | 9.19M |
| Total Liabilities | 35.03M | 22.57M | 19.47M | 36.90M | 61.14M |
| Stockholders Equity | 117.49M | 127.84M | 148.26M | 179.29M | 158.46M |
Cash Flow | |||||
| Free Cash Flow | -3.35M | 17.36M | 30.80M | -6.18M | -1.51M |
| Operating Cash Flow | -2.16M | 18.29M | 31.93M | -4.09M | 1.08M |
| Investing Cash Flow | -12.42M | -4.28M | -7.52M | 8.27M | 16.77M |
| Financing Cash Flow | -1.66M | -9.88M | -7.97M | -1.05M | -9.78M |
Silicom Technical Analysis
Positive
28.70
Price Trends
30.44
Positive
24.21
Positive
20.16
Positive
Market Momentum
4.13
Positive
62.11
Neutral
25.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SILC, the sentiment is Positive. The current price of 28.7 is below the 20-day moving average (MA) of 41.66, below the 50-day MA of 30.44, and above the 200-day MA of 20.16, indicating a bullish trend. The MACD of 4.13 indicates Positive momentum. The RSI at 62.11 is Neutral, neither overbought nor oversold. The STOCH value of 25.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SILC.
Silicom Risk Analysis
Silicom disclosed 50 risk factors in its most recent earnings report. Silicom reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Silicom Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $227.93M | 73.64 | -3.82% | ― | 7.22% | 46.78% | |
62 Neutral | $258.66M | -12.72 | -9.30% | ― | 14.63% | 0.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $142.43M | -3.04 | 4.39% | ― | -4.37% | 76.76% | |
56 Neutral | $111.50M | -27.50 | -3.58% | ― | 9.13% | 81.23% | |
54 Neutral | $89.93M | -8.92 | -23.40% | ― | -12.17% | 18.82% |
* Technology Sector Average
SILC
Silicom
45.33
30.43
204.23%
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111.01%
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AIRG
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7.10
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FKWL
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3.03
-1.00
-24.81%
Silicom Corporate Events
Silicom Wins Key AI Inference PoC Deal With Tier-1 Hyperscaler Focus
May 5, 2026
Silicom announced on May 5, 2026 that a pioneering AI inference acceleration provider has chosen its high-performance, inference-specific solution for a proof-of-concept aimed mainly at Tier-1 hyperscalers. To support the PoC, scheduled for the se...
Silicom to Present, Meet Investors at 21st Annual Needham Tech Conference
May 5, 2026
Silicom Ltd., an Israel-based provider of high-performance networking and data infrastructure solutions for cloud, data center and edge environments, supplies server adapters, AI NICs, FPGA-based smart cards, PQC accelerators, white label switches...
Silicom’s Q1 2026 Revenue Jumps 33% as Core Business Hits Growth Inflection Point
Apr 30, 2026
Silicom reported on April 30, 2026 that its core networking and data infrastructure business reached an inflection point in the first quarter, with Q1 2026 revenues climbing 33% year over year to $19.1 million. Despite this growth, the company pos...
Silicom Sets June 3, 2026 AGM to Vote on Executive Pay, RSUs and Auditor Appointment
Apr 28, 2026
Silicom Ltd. has called its Annual General Meeting of Shareholders for June 3, 2026, in Kfar Sava, Israel, with shareholders of record as of April 29, 2026, entitled to vote. The agenda includes the re‑election of director Yeshayahu (“...
Silicom Secures $3M-Per-Year FPGA SmartNIC Design Win With European Secure Communications Leader
Apr 15, 2026
On April 15, 2026, Silicom Ltd. announced a significant design win with a European provider of advanced encryption and secure communication solutions that require top-tier protection for sensitive information. The customer chose Silicom’s FP...
Silicom Sets April 30, 2026 Date to Report Q1 Results and Host Investor Call
Mar 31, 2026
Silicom Ltd., a high-performance networking and data infrastructure specialist serving cloud, data center and edge markets, detailed its role as a backbone provider for critical technologies including AI inference, SD-WAN, SASE, cyber security and...
Silicom Publishes Audited 2025 Financials and Confirms Effective Internal Controls
Mar 16, 2026
On March 16, 2026, Silicom Ltd. filed a Form 6-K announcing the release of its audited consolidated financial statements and management’s review for the year ended December 31, 2025, together with an auditor’s opinion on both the finan...
Silicom Wins Major Global Streaming Provider as Network Adapter Customer
Mar 12, 2026
On March 12, 2026, Silicom Ltd. reported that one of the world’s largest streaming service providers has selected a high-speed Silicom network adapter for deployment in its proprietary streaming infrastructure. The customer has already place...
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.