Silicon Motion (SIMO)
NASDAQ:SIMO
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Silicon Motion
(NASDAQ:SIMO)
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Rating:75Outperform
Price Target:
$292.00
▲(109.00% Upside)
Action:Reiterated
Date:05/02/26
The score is driven by a very strong balance sheet and attractive valuation, supported by upbeat earnings-call guidance for accelerating growth and margin expansion. The main offsets are negative TTM operating/free cash flow (a notable financial quality risk) and overbought technical conditions that raise near-term pullback risk.
Positive Factors
Strong Balance Sheet
Effectively no debt and a strong equity base give Silicon Motion durable financial flexibility to fund R&D, capacity builds, dividends and customer ramps without near-term refinancing. This lowers insolvency risk across semiconductor cycles and supports multi-quarter strategic investments.
Negative Factors
Negative Operating & Free Cash Flow
A marked reversal to negative operating and free cash flow reduces internal funding for inventory, development and dividends. Sustained cash conversion weakness could force tighter working-capital management, reduce strategic optionality, or require external financing over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
Effectively no debt and a strong equity base give Silicon Motion durable financial flexibility to fund R&D, capacity builds, dividends and customer ramps without near-term refinancing. This lowers insolvency risk across semiconductor cycles and supports multi-quarter strategic investments.
Read all positive factors
Silicon Motion (SIMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.05B
Dividend Yield2.22%
Average Volume (3M)1.03M
Price to Earnings (P/E)3.5
Beta (1Y)2.03
Revenue Growth36.05%
EPS Growth80.83%
CountryUS
Employees1,819
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)20.24
Shares Outstanding33,907,833
10 Day Avg. Volume1,210,987
30 Day Avg. Volume1,030,292
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 Cap1.04
Enterprise Value/Revenue7.87
Enterprise Value/Gross Profit16.36
Enterprise Value/Ebitda49.89
Forecast
1Y Price Target
$257.86Price Target Upside84.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)8.46
Revenue Forecast (FY)$1.60B
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 PC...
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 23, 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 | 167.38M | 123.21M | 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 | -81.68M | 6.28M | 32.74M | 98.77M | 50.97M | 150.04M |
| Operating Cash Flow | -19.71M | 61.43M | 77.19M | 149.08M | 83.75M | 176.87M |
| Investing Cash Flow | -34.23M | -27.47M | -44.19M | -49.09M | -32.78M | -30.34M |
| Financing Cash Flow | -67.74M | -91.51M | -67.25M | -16.69M | -183.10M | -99.73M |
Silicon Motion Technical Analysis
Positive
139.71
Price Trends
162.22
Positive
140.30
Positive
113.72
Positive
Market Momentum
30.21
Positive
68.52
Neutral
49.69
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 139.71 is below the 20-day moving average (MA) of 220.73, below the 50-day MA of 162.22, and above the 200-day MA of 113.72, indicating a bullish trend. The MACD of 30.21 indicates Positive momentum. The RSI at 68.52 is Neutral, neither overbought nor oversold. The STOCH value of 49.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.77B | 215.30 | 2.44% | 2.27% | 3.11% | -54.05% | |
75 Outperform | $8.05B | 3.54 | 20.24% | 2.22% | 36.05% | 80.83% | |
67 Neutral | $7.14B | -108.41 | -4.66% | ― | 25.14% | 70.00% | |
65 Neutral | $3.45B | -42.07 | -13.00% | ― | 37.15% | 37.41% | |
62 Neutral | $4.60B | -83.31 | -3.47% | ― | 12.81% | -129.65% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $4.51B | 764.02 | 1.37% | ― | 9.29% | ― |
* Technology Sector Average
SIMO
Silicon Motion
252.92
189.37
298.00%
IPGP
IPG Photonics
113.33
47.88
73.16%
POWI
Power Integrations
68.28
18.07
36.00%
SLAB
Silicon Laboratories
216.46
91.60
73.36%
SYNA
Synaptics
123.64
61.43
98.75%
AMBA
Ambarella
76.69
13.10
20.60%
Silicon Motion Corporate Events
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...
Silicon Motion Sets April 29 Earnings Call for First-Quarter 2026 Results
Apr 10, 2026
Silicon Motion Technology Corporation, a leading supplier of NAND flash controllers for SSDs and embedded storage used across servers, PCs, smartphones, IoT, industrial and automotive markets, operates globally with key bases in Taiwan, the U.S. a...
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.