Silicon Motion (SIMO) AI Stock Analysis

• Market Cap: $3.84B
• Dividend Yield: 2.22%
• Average Volume (3M): 419.74K
• Price to Earnings (P/E): 38.9
• Beta (1Y): 1.92
• Revenue Growth: -2.26%
• EPS Growth: 9.74%
• Country: US
• Employees: 1,819
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.00
• Shares Outstanding: 33,983,670
• 10 Day Avg. Volume: 734,107
• 30 Day Avg. Volume: 419,742
• PEG Ratio: 0.04
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 55.53
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 3.74
• Enterprise Value/Gross Profit: 7.89
• Enterprise Value/Ebitda: 26.88
• 1Y Price Target: $120.71
• Price Target Upside: 4.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $125.00 ▲(8.39% Upside)

SIMO scores well on strong technical momentum and a constructive earnings outlook with confident guidance. The balance sheet is a key support, but the overall score is held back by weakened cash conversion/negative free cash flow and a relatively high P/E, which increases sensitivity to any execution or demand risks highlighted on the call.

Positive Factors

Balance Sheet Strength

Virtually no debt and historically low leverage provide durable financial flexibility. This supports continued R&D, capacity spending, dividends or buybacks and cushions semiconductor cyclicality, reducing solvency risk and enabling strategic investments over the next 2–6 months.

Product / Technology Leadership

Leadership in PCIe 5 controllers and QLC-focused solutions aligns the company with secular demand for higher-capacity, higher-performance SSDs. That technical advantage supports sustainable share gains in client, enterprise and AI-driven storage markets over the medium term.

Revenue Diversification & Market Expansion

Design wins in automotive and the MonTitan enterprise push (targeting ~5–10% revenue by 2026–27) diversify end markets beyond consumer SSDs. This reduces exposure to singular cycles and opens structurally higher-value, longer lifecycle revenue streams.

Negative Factors

Weakened Cash Generation

A material decline in cash conversion and slightly negative free cash flow increases funding risk for capex, product ramp and shareholder returns. If sustained, weaker cash flow constrains strategic flexibility despite a strong balance sheet and can pressure investment pacing.

Margin Compression & Cyclicality

Gross and net margins remain solid but are down from cycle peaks, indicating reduced pricing power or higher costs. In a cyclical semiconductor market, sustained margin compression would lower returns on capital and heighten sensitivity to demand shocks over the medium term.

Supply Constraints & Geopolitical Risk

Projected NAND shortages and rising memory prices can restrict ability to fulfill demand or raise input costs, squeezing margins. Combined with geopolitical/tariff uncertainty and resource constraints for enterprise scaling, this limits predictable, stable growth execution.

Silicon Motion Business Overview & Revenue Model

Company Description

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. It offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. It markets its controllers under the SMI brand; enterprise-grade SSDs under the Shannon Systems brand; and single-chip industrial-grade SSDs under the Ferri SSD, Ferri-eMMC, and Ferri-UFS brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs. It operates in Taiwan, the United States, South Korea, China, Malaysia, Singapore, and internationally. Silicon Motion Technology Corporation was founded in 1995 and is based in Hong Kong, Hong Kong.

How the Company Makes Money

Silicon Motion generates revenue primarily through the sale of its NAND flash memory controllers and related products. The company has a diversified revenue model, with key revenue streams coming from the sale of SSD controllers, mobile storage solutions, and other semiconductor products. Significant partnerships with leading memory manufacturers and OEMs (original equipment manufacturers) enhance its market presence and drive sales. Additionally, Silicon Motion benefits from the growing demand for high-performance storage solutions across various sectors, including consumer electronics, enterprise data centers, and industrial applications, contributing to its overall earnings.

Silicon Motion Financial Statement Overview

Summary

Silicon Motion exhibits strong revenue growth and operational efficiency with a solid balance sheet. Despite a decline in free cash flow, the company's financial health remains robust due to zero debt and substantial cash reserves. The stability in profitability and healthy margins position the company well within the semiconductor industry, though improvements in cash flow generation would enhance its financial standing.

Income Statement

Silicon Motion has demonstrated solid revenue growth with a significant increase from $639 million in 2023 to $803 million in 2024. The gross profit margin improved to 46.1%, indicating effective cost management. However, net profit margin remained relatively stable at around 11.3%, suggesting room for improvement in profitability. EBIT and EBITDA margins are healthy, at 11.5% and 14.9% respectively, showing good operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with zero debt as of 2024, reducing financial risk. The equity ratio is high, at approximately 75%, indicating a strong capital structure. Return on equity is solid at 11.7%, reflecting efficient use of equity capital. The company’s liquidity position remains robust with significant cash reserves.

Cash Flow

Free cash flow experienced a decline from $98.8 million in 2023 to $32.7 million in 2024, raising concerns about cash generation. However, operating cash flow remains positive, indicating the company’s ability to generate cash from operations. The operating cash flow to net income ratio is stable, reflecting consistent cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	798.33M	803.55M	639.14M	945.92M	922.10M	539.52M
Gross Profit	378.34M	368.76M	270.39M	465.83M	460.80M	260.16M
EBITDA	111.11M	132.74M	83.04M	231.57M	264.46M	99.33M
Net Income	96.45M	89.25M	52.87M	172.51M	200.00M	79.75M
Balance Sheet
Total Assets	1.14B	1.03B	1.01B	961.25M	971.33M	742.06M
Cash, Cash Equivalents and Short-Term Investments	198.58M	276.07M	314.30M	232.18M	360.08M	342.96M
Total Debt	0.00	2.53M	2.34M	3.20M	2.90M	3.06M
Total Liabilities	303.22M	259.12M	273.26M	228.65M	313.75M	184.32M
Stockholders Equity	833.79M	773.75M	734.70M	732.60M	657.58M	557.74M
Cash Flow
Free Cash Flow	-4.36M	32.74M	98.77M	50.97M	150.04M	97.11M
Operating Cash Flow	54.06M	77.19M	149.08M	83.75M	176.87M	115.89M
Investing Cash Flow	-58.07M	-44.19M	-49.09M	-32.78M	-30.34M	-20.78M
Financing Cash Flow	-92.14M	-67.25M	-16.69M	-183.10M	-99.73M	-73.91M

Silicon Motion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 115.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIMO, the sentiment is Positive. The current price of 115.32 is above the 20-day moving average (MA) of 95.20, above the 50-day MA of 92.30, and above the 200-day MA of 76.34, indicating a bullish trend. The MACD of 6.12 indicates Negative momentum. The RSI at 70.24 is Negative, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIMO.

Silicon Motion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIMO	76 Outperform	$3.84B	38.93	11.88%	2.22%	-2.26%	9.74%
SLAB	68 Neutral	$4.80B	-54.90	-8.00%	―	47.10%	64.29%
POWI	62 Neutral	$2.30B	132.24	2.53%	2.27%	10.50%	-52.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYNA	60 Neutral	$3.20B	-72.45	-3.16%	―	13.24%	-129.14%
IPGP	58 Neutral	$3.21B	126.68	1.22%	―	-7.49%	―
AMBA	56 Neutral	$2.98B	―	-13.92%	―	48.08%	51.23%

Silicon Motion Corporate Events

Silicon Motion Sets February 4 Call for Q4 2025 Earnings

On January 9, 2026, Silicon Motion Technology Corporation announced that it will release its fourth-quarter 2025 financial results after the market closes on February 3, 2026, and will host an earnings conference call on February 4 at 8:00 a.m. Eastern Time, with pre-registration required for participation and a simultaneous webcast on the company’s website. The scheduled disclosure of quarterly earnings and accompanying call signals an upcoming update on the company’s financial performance and operating trends, which will be closely watched by investors and industry stakeholders given Silicon Motion’s prominent position in the global solid-state storage and NAND controller markets.

The most recent analyst rating on (SIMO) stock is a Buy with a $125.00 price target. To see the full list of analyst forecasts on Silicon Motion stock, see the SIMO Stock Forecast page.

Silicon Motion Reports Strong Q3 2025 Financial Results and Declares Dividend

Silicon Motion Technology Corporation reported a significant financial performance for the third quarter of 2025, with net sales increasing by 22% quarter-over-quarter and 14% year-over-year, reaching $242 million. The company experienced robust growth across its product lines, particularly in eMMC and UFS controllers, driven by a recovering smartphone market and increased market share. The automotive segment also saw growth due to product diversification and new customer acquisitions. The company’s strategic investments in product and market diversification are beginning to yield results, positioning it for sustainable long-term growth. The board declared a $2.00 per ADS annual dividend, with the first installment scheduled for November 26, 2025.

The most recent analyst rating on (SIMO) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on Silicon Motion stock, see the SIMO Stock Forecast page.

Silicon Motion Declares Annual Dividend Amid Improved Business Outlook

On October 27, 2025, Silicon Motion Technology Corporation announced an annual cash dividend of $2.00 per ADS, to be paid in four quarterly installments of $0.50 each. This decision reflects the company’s improved business performance and normalized margins, as well as a positive outlook for the memory industry. The dividend payments are scheduled with specific record and payment dates, starting from November 2025 through August 2026. The company emphasizes its commitment to distributing a significant portion of its strong cash flow to shareholders, indicating a stable financial position and confidence in long-term growth opportunities.

The most recent analyst rating on (SIMO) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on Silicon Motion stock, see the SIMO Stock Forecast page.