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Silicon Motion Technology
🏹 Trader: | BRS 64 Forming View all →
$8.8B
Market Cap
25.5
P/E
0.93
PEG
14.5%
ROCE
15.3%
ROE
0.00
D/E
10.5%
OPM
-27.7%
% from 52W High
94
α RS
🔍 SIMO is showing a high-conviction setup because it matches 4 of 37 tracked screener presets and RS Rating is 94 (top decile vs market). Net: Partial signal stack, not a recommendation. ? Conviction RS Rating
Sources
Conviction 4/37 · RS Rating 94
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📈 Price History
Ratio Health
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By Category
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About

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices and related devices in China, Japan, Singapore, Taiwan, Korea, the United States, and internationally.

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📈 Growth Pattern
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📊 MIXED Record Q1 revenue of $342.1M driven by eMMC/UFS, Ferri-series, and Boot Drive growth.
Revenue & Profitability
Q1 2026 non-GAAP revenue was $342.1 million, up 23% sequentially and 105% year-over-year. Gross margin was 47.2%, above guidance; operating margin was 18.2%; EPS was $1.58. Operating expenses rose to $99.2 million due to investments in enterprise products. The company ended the quarter with $210.9 million in cash. Q2 2026 guidance calls for revenue of $393 million-$411 million (15%-20% sequential growth).
Outlook
Management expects the NAND shortage to persist through 2026 and 2027, with NAND prices rising sharply (55%-60% sequentially in Q1). DRAM and substrate (ABF) constraints also weigh on the industry. Smartphone and PC unit volumes are projected to decline over 10% in 2026, especially in the low end, but AI adoption continues to drive strong demand for enterprise storage solutions.
Growth Drivers
Growth is driven by market share gains in mobile eMMC/UFS (outpacing smartphone decline), ramp of MonTitan enterprise controllers with five Tier 1 CSP customers (three Asian, two US), and expansion of Boot Drive storage with a leading AI GPU manufacturer and telecom/TPU customers. In client SSD, PCIe Gen5 displacement and a new 4-channel DRAM-less controller are boosting ASPs and share. Ferri-series automotive is benefiting from NAND maker exits.
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Q1 gross margin was 47.2% (above guidance of 46%-47%), with operating margin at 18.2% (above guidance). For Q2, gross margin is expected to improve to 48.5%-49.5% and operating margin to 21%-22%, driven by higher revenue and favorable mix (MonTitan, PCIe Gen5). Management sees 50% gross margin as achievable and expects full-year operating margin to improve over 2025 despite higher investments.
Key Risks
Key risks include ongoing NAND and DRAM shortages through 2027, which could constrain supply and elevate costs. Smartphone and PC unit declines (over 10%) may pressure volumes. Tightness in ABF substrate supply poses a manufacturing risk. Additionally, competitive pressure and rapid technology changes are ongoing risks mentioned in the safe harbor.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-30
Record Q2 revenue and gross margin were driven by strong growth in embedded, automotive, and enterprise segments, with Ferri and boot drive solutions now nearly 30% of revenue. Outlook remains robust, with Q3 and full-year 2026 guidance calling for continued double-digit growth and margin expansion.
Q1 2026 Q1 2026 2026-04-29
Record Q1 2026 revenue and profitability were driven by strong growth in embedded, automotive, and AI storage solutions, with continued market share gains and robust guidance for sequential growth and margin expansion throughout the year.
Q4 2025 Q4 2025 2026-02-04
Q4 2025 saw revenue and margin outperformance, driven by strong demand and new product launches. 2026 is expected to be a record year, with sequential growth, despite NAND/DRAM supply constraints and rising prices. Key segments include eMMC/UFS, client SSD, and enterprise solutions.
Q3 2025 Q3 2025 2025-10-31
Q3 2025 saw 22% revenue growth and margin expansion, driven by strong demand for new controllers and AI-related storage. Guidance for Q4 points to continued growth, with robust performance across eMMC, UFS, SSD, automotive, and enterprise segments.
Q2 2025 Q2 2025 2025-07-31
Q2 2025 results exceeded guidance with 19.3% sequential revenue growth and strong margins, driven by robust demand across mobile, SSD, automotive, and enterprise segments. Outlook remains positive with a $1 billion revenue run rate targeted by year-end and continued margin expansion expected.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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