Track market-moving stories before they get noisy

Key Takeaways Silicon Motion aligned security controls and processes with EU CRA incident-reporting requirements.SIMO enhanced vulnerability monitoring, coordinated disclosure, remediation and incident reporting procedures.SIMO launched a security reporting channel for stakeholders to report suspected product vulnerabilities. Silicon Motion Technology Corporation (SIMO - Free Report) has strengthened its product cybersecurity framework by reaching an initial milestone in its compliance program for the European Union’s Cyber Resilience Act (CRA). The milestone underscores the company’s strategy to improve product security alongside its expanding presence in artificial intelligence (AI), data center and edge computing markets.

Silicon Motion has aligned its product security controls and internal processes with the CRA’s incident-reporting requirements while enhancing its vulnerability-handling capabilities. It has reinforced security management and due diligence for third-party hardware and software components, continuous vulnerability monitoring, coordinated disclosure and remediation, and incident escalation and reporting procedures.

The company has also launched a dedicated security vulnerability reporting channel that allows customers, end users and other stakeholders to report suspected issues directly. This initiative supports the timely identification and resolution of vulnerabilities across its portfolio, including enterprise and edge SSD controllers, enterprise boot drive solutions, embedded eMMC and UFS controllers, Ferri solutions for automotive and Physical AI applications, and display interface products.

As connected devices and AI infrastructure increasingly depend on secure hardware and software, Silicon Motion’s focus on product security and post-market vulnerability management could enhance the reliability and competitiveness of its storage solutions.

How Are Competitors Advancing in Cybersecurity?Silicon Motion faces competition from Micron Technology, Inc. (MU - Free Report) and Western Digital Corporation (WDC - Free Report) . Micron Technology continues to focus on cybersecurity by integrating security features such as secure boot, hardware root of trust and encryption into its products. The company uses the NIST Cybersecurity Framework to guide its broader cybersecurity programs and risk management. Micron Technology has strengthened security measures for its SSDs and provides channels for reporting potential product security issues.

Western Digital is advancing its cybersecurity efforts by integrating post-quantum cryptography into its Ultrastar hard drives. The technology includes secure boot and firmware protection to help improve device security and protect AI data. Western Digital plans to expand its post-quantum cryptography capabilities across additional enterprise hard drive product lines over time to enhance data protection and hardware security.

SIMO’s Price Performance, Valuation and EstimatesSilicon Motion shares have skyrocketed 202% over the past year compared with the industry’s growth of 206.8%.

Image Source: Zacks Investment Research

Going by the price/earnings ratio, the company's shares currently trade at 17.42 forward earnings, higher than 11.95 for the industry.

Image Source: Zacks Investment Research

Earnings estimates for 2026 have increased 31.6% to $11.16 over the past 60 days, while those for 2027 have increased 50.3% to $16.34.

Image Source: Zacks Investment Research

Silicon Motion stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways SIMO launched MonTitan SSD RDK to address demanding storage needs of Agentic AI workloads.PerformaShape enables precise workload management, predictable quality of service and persistent memory.SIMO integrates PerformaShape into PCIe 5.0 and 6.0 controllers to support scalable AI storage solutions. Silicon Motion Technology Corporation (SIMO - Free Report) has strengthened its footprint in the evolving artificial intelligence (AI) infrastructure market by introducing its MonTitan SSD Reference Design Kit (RDK). The new platform is designed to deliver high performance, predictable latency and sustained data processing to meet the demanding storage requirements of Agentic AI workloads.

Silicon Motion has incorporated its next-generation PerformaShape technology into the platform to enhance SSD quality of service by enabling more precise management of complex and rapidly changing workloads. The solution enables enterprise SSDs to serve as a persistent memory layer for applications such as KV cache offload and autonomous AI agents, while performance monitoring and NVMe TP4176 API support help maintain predictable quality of service under the complex and rapidly changing workloads of multi-agent and multi-tenant AI environments.

The company has integrated PerformaShape into its SM8366 PCIe 5.0 and SM8466 PCIe 6.0 enterprise SSD controllers, providing SSD manufacturers with a scalable foundation for developing AI-focused storage solutions. The MonTitan RDK can help simplify product development, shorten the time to market, and support the growing storage needs of AI servers and data centers.

The launch underscores Silicon Motion’s strategy to capitalize on the rising storage requirements of AI infrastructure. As AI workloads become increasingly data-intensive and latency-sensitive, the company’s controller technology and focus on predictable SSD performance could support greater adoption of its enterprise storage solutions.

How Are Competitors Advancing in the AI Space?Silicon Motion faces competition from Seagate Technology Holdings plc (STX - Free Report) and Micron Technology, Inc. (MU - Free Report) . Seagate is strengthening its position in AI infrastructure by advancing high-capacity storage solutions for data centers. The company introduced its next-generation Mozaic 4+ platform and continues to advance HAMR technology to address the massive data storage requirements of AI workloads. Seagate’s high-capacity HDD technology could benefit from rising demand for cost-efficient, large-scale storage.

Micron is expanding in AI infrastructure with advanced memory and storage solutions, including HBM4, high-capacity server memory and PCIe Gen6 SSDs. The company is enhancing its product portfolio to address the performance, bandwidth and capacity requirements of next-generation AI training and inference workloads. Micron’s agreement with Anthropic strengthens its position in the growing AI market by supporting advanced memory and storage needs.

SIMO’s Price Performance, Valuation and EstimatesSilicon Motion shares have skyrocketed 198% over the past year compared with the industry’s growth of 181.4%.

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Going by the price/earnings ratio, the company's shares currently trade at 16.1 forward earnings, higher than 11.36 for the industry.

Image Source: Zacks Investment Research

Earnings estimates for 2026 have increased 33.3% to $11.16 over the past 60 days, while those for 2027 have increased 56.4% to $16.34.
Image Source: Zacks Investment Research

Silicon Motion stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Opportunistic capital raise with proceeds intended to enhance financial flexibility and support growth initiatives
TAIPEI, Taiwan and MILPITAS, Calif., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion”), a global leader in designing and marketing NAND flash controllers for solid-state storage devices (“SSDs”), today announced its intention to offer, subject to market and other conditions, $800,000,000 aggregate principal amount of 0.00% convertible senior notes due 2031 (the “Notes”) in a private offering to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Silicon Motion also expects to grant the initial purchasers of the Notes an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $120,000,000 aggregate principal amount of Notes.

The Notes will be senior, unsecured obligations of Silicon Motion. The Notes will not bear regular interest, and the principal amount of the Notes will not accrete. The Notes will mature on August 15, 2031, unless earlier repurchased, redeemed or converted. Prior to the close of business on the business day immediately preceding May 15, 2031, holders of the Notes will have the right to convert their Notes upon the satisfaction of specified conditions and during certain periods. On or after May 15, 2031 until the close of business on the second scheduled trading day immediately preceding the maturity date, the Notes will be convertible at the option of the holders at any time regardless of these conditions. Silicon Motion will settle each conversion by paying the principal amount (or, if less, the conversion value) of the Notes in cash, and any conversion value in excess of the principal amount will be settled in cash, American depositary shares of Silicon Motion (the “ADSs”), each representing four ordinary shares of Silicon Motion, par value $0.01 per share, or any combination thereof, at Silicon Motion’s election.

Silicon Motion may redeem the Notes for cash at its option, in whole but not in part, in connection with certain tax-related events. In addition, the Notes will be redeemable, in whole or in part (subject to certain limitations), for cash, at Silicon Motion’s option, on or after August 20, 2029 if the last reported sale price of the ADSs equals or exceeds 130% of the conversion price for a specified period of time and certain other conditions are satisfied. The redemption price, in each case, will be equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date. Holders of the Notes will have the right to require Silicon Motion to repurchase their Notes upon the occurrence of a fundamental change (as defined in the indenture governing the Notes) or on August 15, 2029, in each case, at a cash repurchase price equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the applicable repurchase date. The initial conversion rate and other terms of the Notes will be determined at the pricing of the offering.

Silicon Motion intends to use the net proceeds from the offering for general corporate purposes and to repay amounts outstanding under its credit agreement. Pending the use of the net proceeds from this offering as described above, Silicon Motion may invest the net proceeds in short-term, investment grade, interest-bearing securities.

The offer and sale of the Notes, the ADSs, if any, issuable upon conversion of the Notes, and the ordinary shares represented thereby, have not been, and will not be, registered under the Securities Act, or any other securities laws, and the Notes, any such ADSs and ordinary shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the Notes, the ADSs, if any, issuable upon conversion of the Notes, or the ordinary shares represented thereby, nor will there be any offer, solicitation or sale of the Notes, any such ADSs or ordinary shares, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.

About Silicon Motion Technology Corporation

Silicon Motion Technology Corporation (NasdaqGS: SIMO) is the global leader in supplying NAND flash controllers for SSDs. The company ships more SSD controllers than any other supplier worldwide for servers, PCs, and other edge devices, and is also the leading merchant provider of eMMC and UFS embedded storage controllers used in smartphones, IoT products, and automotive applications.

Silicon Motion also delivers customized, high-performance controller solutions for Enterprise SSDs, Enterprise boot drives, Edge SSDs, Embedded UFS & eMMC, and Ferri solutions for automotive. Its controllers and storage solutions are designed to power the world’s most advanced AI Infrastructure, Edge AI, and Physical AI, combining high performance, low power, and proven reliability.

Forward-Looking Statements

This press release includes forward-looking statements, including statements regarding the anticipated terms of the Notes being offered, the completion, timing and size of the proposed offering and the intended use of the proceeds. Forward-looking statements represent Silicon Motion’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those indicated in, or implied by, the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of the ADSs and risks relating to Silicon Motion’s business, including those described in documents Silicon Motion files from time to time with the U.S. Securities and Exchange Commission, including Silicon Motion’s Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2026. Silicon Motion may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the offering or the Notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Silicon Motion does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.

Silicon Motion Investor Contacts:

Key Takeaways SIMO posted record $451M revenue, up 127% year over year, with expanding margins and earnings growth.Silicon Motion expects more Tier 1 customers for MonTitan SSD controllers as AI storage demand grows.SIMO forecasts third-quarter revenue of $519M-$541M, targeting another record year in 2026. Silicon Motion Technology (SIMO - Free Report) shares have declined 21.1% over the past month despite the company delivering record financial results and raising expectations for another quarter of strong growth. The pullback comes after a sharp rally that has left the stock up more than 170% year to date, suggesting that investors may have been locking in profits or reassessing valuation rather than reacting to deteriorating business fundamentals.

The company's latest earnings report painted a very different picture from its recent stock-price performance. Revenue more than doubled from a year ago, margins expanded and management highlighted growing opportunities in AI infrastructure, enterprise storage and automotive applications. While near-term concerns surrounding memory pricing and consumer demand remain, Silicon Motion's long-term growth drivers appear intact.

Companies such as Western Digital (WDC - Free Report) and Marvell Technology (MRVL - Free Report) are expanding their presence across enterprise storage and AI infrastructure, underscoring the growing importance of high-performance storage technologies as cloud computing, generative AI and data-center investments continue to accelerate.

Why SIMO Is Still Delivering Strong GrowthSilicon Motion reported another outstanding quarter for the three months ended June 30, 2026. Revenue jumped 127% year over year and 32% sequentially to a record $451 million. Gross margin expanded to 50.2% from 47.7% a year earlier, while operating margin improved to 22.4% from 11.2%. Non-GAAP earnings climbed to $2.43 per ADS, comfortably exceeding expectations. 

Growth remained broad-based across the business. SSD controller revenue increased 50%-55% year over year, while embedded eMMC and UFS controller sales nearly doubled. Ferri and Boot Drive storage solutions delivered the strongest performance, with sales surging more than 1,600% from the prior-year quarter as adoption accelerated across automotive and enterprise applications.

Management attributed the performance to continued market share gains as NAND manufacturers increasingly rely on third-party controller suppliers while focusing more resources on high-bandwidth memory and other AI-related products. The company also benefited from higher adoption of newer UFS controllers and improving demand for edge SSD products, supporting higher average selling prices and expanding profitability.

Silicon Motion's AI Expansion Takes ShapeEnterprise storage is becoming an increasingly important growth engine for Silicon Motion. During the second quarter, the company's MonTitan enterprise SSD controllers entered commercial production with two Tier 1 customers. Management expects another five Tier 1 customers to begin production during the second half of 2026, expanding its presence across hyperscale data centers and enterprise storage markets.

Management believes AI infrastructure is creating substantial demand for enterprise SSD controllers that deliver low-latency storage for GPU- and CPU-intensive workloads. Initial deployments are focused on TLC NAND-based compute storage applications, while additional QLC-based enterprise products are expected to begin ramping later this year as higher-capacity storage solutions gain traction.

The company is also investing in future technology leadership. Silicon Motion plans to complete the tape-out of its next-generation 4-nanometer PCIe Gen6 enterprise controller during 2026 and has already secured multiple design wins with flash manufacturers and cloud service providers. Management expects these products to become meaningful growth contributors beginning in 2028.

Beyond enterprise storage, Ferri automotive and enterprise boot drive solutions continue expanding rapidly as the company diversifies into AI infrastructure, industrial systems and automotive applications. This broadening product portfolio reduces Silicon Motion's historical dependence on smartphones and consumer storage devices.

Can Higher NAND Costs Slow SIMO?Despite the favorable operating trends, investors continue monitoring several meaningful risks. Management acknowledged that rising NAND and DRAM prices are increasing the cost of smartphones and PCs, making many consumer devices less affordable. The company expects smartphone shipments to decline 10%-15% during 2026, although it still anticipates growth in its mobile business through continued market share gains and increasing adoption of higher-value UFS controllers.

The latest equity research report also identifies memory cost inflation, customer concentration, supply constraints and geopolitical uncertainty as ongoing challenges. Enterprise expansion depends on successful qualification and production ramps across multiple Tier 1 customers, while continued growth requires sustained demand for AI infrastructure and enterprise storage solutions.

Importantly, none of these factors were identified by management as the direct cause of the stock's recent 21.1% decline. Given Silicon Motion's exceptional year-to-date performance, the recent pullback appears more consistent with normal profit-taking and valuation adjustments following a substantial rally than with weakening operating fundamentals.

Where SIMO's Growth Story Could Go NextSilicon Motion's growth profile continues shifting toward higher-value enterprise and industrial markets. Enterprise SSD controllers, automotive storage products and Ferri Boot Drive solutions are becoming larger contributors to revenue, while PCIe Gen5 SSD controllers are supporting a richer product mix and higher average selling prices. Although adoption of PCIe Gen5 has progressed more slowly than initially expected, management continues gaining market share across NAND manufacturers and module makers.

The company also sees PCIe Gen6 controllers as its next major growth opportunity. Multiple design wins with hyperscalers and cloud service providers provide additional confidence that enterprise storage could become an increasingly meaningful revenue contributor over the next several years.

Management expects the momentum to continue during the current quarter. Third-quarter revenue is projected between $519 million and $541 million, representing sequential growth of 15%-20%, while the company remains on track to deliver record annual revenue exceeding 100% year-over-year growth in 2026.

If enterprise storage, automotive applications and AI infrastructure continue expanding as expected, these businesses could increasingly offset cyclical weakness in smartphones and consumer electronics.

What SIMO's Ranking Signals SuggestSilicon Motion currently sports a Zacks Rank #1 (Strong Buy), reflecting favorable earnings estimate revisions following another quarter of earnings and revenue outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.  However, the stock also has a Momentum Score of A, indicating improving earnings momentum and positive estimate revisions that have historically supported near-term stock performance.

The company, however, has a Value Score of F and a VGM Score of D, suggesting the shares trade at a premium valuation after their sharp advance this year. Those weaker Style Scores do not necessarily indicate deteriorating fundamentals. Instead, they imply that investors are already assigning a higher valuation to Silicon Motion's expanding AI infrastructure, enterprise storage and automotive growth opportunities.

Taken together, Silicon Motion's strong earnings momentum, expanding enterprise business and improving estimate revisions continue supporting its long-term investment story. While higher memory prices and weaker smartphone demand could create periodic volatility, the company's growing exposure to AI infrastructure, enterprise SSD controllers and next-generation storage technologies provides multiple avenues for sustained growth beyond the current cycle.

Business Highlights

Second quarter of 2026 sales increased 32% Q/Q and increased 127% Y/Y   SSD controller sales: 2Q of 2026 increased 5% to 10% Q/Q and increased 50% to 55% Y/YeMMC+UFS controller sales: 2Q of 2026 increased 15% to 20% Q/Q and increased 95% to 100% Y/YFerri & Boot Drive solutions sales: 2Q of 2026 increased 110% to 115% Q/Q and increased 1,690% to 1,695% Y/Y Financial Highlights

 2Q 2026 GAAP2Q 2026 Non-GAAP• Net sales$451.0 million 
(+32% Q/Q, +127% Y/Y)$451.0 million 
(+32% Q/Q, +127% Y/Y)• Gross margin50.2%
50.2%
• Operating margin22.4%
23.1%
• Earnings per diluted ADS$3.99
$2.43
* Please see reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.

TAIPEI, Taiwan and MILPITAS, Calif., July 30, 2026 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company,” “we” or similar terms) today announced its financial results for the quarter ended June 30, 2026. For the second quarter of 2026, net sales (GAAP) increased sequentially to $451.0 million from $342.1 million in the first quarter of 2026. Net income (GAAP) also increased sequentially to $136.1 million, or $3.99 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $66.8 million, or $1.97 per diluted ADS (GAAP), in the first quarter of 2026

For the second quarter of 2026, net income (non-GAAP) increased sequentially to $83.1 million, or $2.43 per diluted ADS (non-GAAP), from net income (non-GAAP) of $53.8 million, or $1.58 per diluted ADS (non-GAAP), in the first quarter of 2026.

All financial numbers are in U.S. dollars unless otherwise noted.

Second Quarter of 2026 Review

“Our shift from a consumer-focused NAND flash controller maker to a diversified leader in controllers and storage solutions — from AI infrastructure to the edge — is accelerating rapidly,” stated Wallace Kou, President & CEO of Silicon Motion. “The second quarter delivered exceptional growth in revenue, gross margin, and operating margin — powered by our Embedded eMMC & UFS business, our Enterprise and Edge SSD controller business, and our rapidly growing storage solutions business focusing on Ferri for Automotive & Enterprise Boot Drives. The first two quarters delivered a record-breaking start to the year, and we expect that momentum to continue into the second half. With our ongoing product and market expansion, we are building a resilient platform for sustainable, high-quality revenue and profitability growth for years to come.”

Key Financial Results

(in millions, except percentages and per ADS amounts)
GAAPNon-GAAP2Q 20261Q 20262Q 20252Q 20261Q 20262Q 2025Revenue$451.0
$342.1
$198.7
$451.0
$342.1
$198.7
Gross profit
$226.2
$161.3
$94.7
$226.3$161.4
$94.7
Percent of revenue50.2%47.1%47.7%50.2%47.2%47.7%Operating expenses$125.1
$109.1
$72.4
$122.1
$99.2
$69.3
Operating income
$101.1
$52.2
$22.3
$104.2
$62.2
$25.3
Percent of revenue22.4%15.3%11.2%23.1%18.2%12.8%Earnings per diluted ADS$3.99
$1.97
$0.49
$2.43
$1.58
$0.69

Other Financial Information

(in millions)2Q 20261Q 20262Q 2025Cash, cash equivalents and restricted cash—end of period$181.8
$210.9
$282.3
Routine capital expenditures$5.8
$13.2
$7.4
Dividend payments$16.9
$16.9
$16.7
Bank loans$59.2
--
--

During the second quarter of 2026, we had $7.7 million of capital expenditures, including $5.8 million for the routine purchases of testing equipment, software, design tools and other items, and $1.9 million for building construction and improvements.

Returning Value to Shareholders

On October 27, 2025, our Board of Directors declared a $2.00 per ADS annual cash dividend to be paid in quarterly installments of $0.50 per ADS. On May 21, 2026, we paid $16.9 million to Silicon Motion shareholders as the third installment of the annual cash dividend. The fourth installment of our annual dividend is scheduled to be paid on August 20, 2026 to all Silicon Motion shareholders of record as of the close of business on August 6, 2026.

   Business Outlook

“SIMO is drawing on its leading NAND controller technology and unmatched industry relationships to broaden its product portfolio and addressable markets from AI infrastructure to the edge. We've built this foundation over the past several years through investments in leading embedded eMMC and UFS products, our high-performance 6nm PCIe5 edge SSD controller portfolio, our new MonTitan enterprise/AI SSD PCIe5 and in-development PCIe6 controllers, and our rapidly expanding lineup of Ferri and Enterprise Boot Drive storage solutions. Today we are exceptionally well positioned across every AI market, including AI data center, AI server, edge AI, and physical AI.”

“Based on our current backlog and customer forecasts, we expect continued strong top-line growth through the rest of the year. Although many of our consumer businesses face real headwinds from current NAND pricing and supply, we have never been better positioned as a company. We are on track to deliver the highest annual revenue in our company's history, growing more than 100% year-over-year, and we're still in the early stages of bringing our new enterprise/AI infrastructure products into the mix,” stated Mr. Kou.

For the third quarter of 2026, management expects:

($ in millions, except percentages)GAAPNon-GAAP AdjustmentNon-GAAPRevenue$519 to $541
+15% to 20% Q/Q
+114% to 124% Y/Y--$519 to $541
+15% to 20% Q/Q
+114% to 124% Y/YGross margin49.9% to 50.9%Approximately $0.3*50.0% to 51.0%Operating margin24.4% to 25.7%Approximately $14.9 to $15.9**27.5% to 28.5% * Projected gross margin (non-GAAP) excludes $0.3 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $14.9 million to $15.9 million of stock-based compensation and dispute-related expenses.

Conference Call & Webcast:
The Company’s management team will host a conference call at 8:00 a.m. Eastern Time on July 30, 2026.

Conference Call Details
Participants must register in advance to join the conference call using the link provided below. Conference access details, including dial-in information and a unique access PIN, will be provided in the confirmation email received upon registration.

Participant Online Registration:
https://register-conf.media-server.com/register/BIe2be1a4a643c47708d5248b81964b23d

A webcast of the call will be available on the Company's website at www.siliconmotion.com.

Discussion of Non-GAAP Financial Measures

To supplement the Company’s unaudited consolidated financial results calculated in accordance with GAAP, the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;the ability to better identify trends in the Company’s underlying business and perform related trend analysis;a better understanding of how management plans and measures the Company’s underlying business; andan easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures. The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

Foreign exchange loss (gain) consists of remeasurement gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items, which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.

Silicon Motion Technology CorporationConsolidated Statements of Income(in thousands, except percentages and per ADS data, unaudited)  For Three Months Ended For Six Months Ended Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30, 2025
 2026
 2026
 2025
 2026
 ($) ($) ($) ($) ($)Net sales198,675 342,105 451,001 365,167 793,106Cost of sales103,988 180,845 224,784 192,113 405,629Gross profit94,687 161,260 226,217 173,054 387,477Operating expenses
Research & development58,147 86,240 104,654 113,173 190,894Sales & marketing7,093 13,288 13,064 14,208 26,352General & administrative7,118 9,528 7,385 13,578 16,913Operating income22,329 52,204 101,114 32,095 153,318Non-operating income (expense)
Interest income, net2,706 1,617 1,390 5,635 3,007Foreign exchange gain (loss), net(3,302) 16 (381)
 (2,929)
 (365)
Realized/Unrealized gain (loss) on investments, net(1,051) 21,759 74,727 2,245 96,486Others, net1 - - 1 -Subtotal(1,646) 23,392 75,736 4,952 99,128Income before income tax20,683 75,596 176,850 37,047 252,446Income tax expense4,372 8,797 40,738 1,273 49,535Net income16,311 66,799 136,112 35,774 202,911 Earnings per basic ADS0.49 1.98 4.01 1.06 6.00Earnings per diluted ADS0.49 1.97 3.99 1.06 5.97 Margin Analysis:
Gross margin47.7%
 47.1%
 50.2%
 47.4%
 48.9%
Operating margin11.2%
 15.3%
 22.4%
 8.8%
 19.3%
Net margin8.2%
 19.5%
 30.2%
 9.8%
 25.6%
Additional Data:
Weighted avg. ADS equivalents33,557 33,678 33,908 33,596 33,793Diluted ADS equivalents33,562 33,916 34,097 33,681 34,006 Silicon Motion Technology CorporationReconciliation of GAAP to Non-GAAP Operating Results(in thousands, except percentages and per ADS data, unaudited)  For Three Months Ended For Six Months Ended Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30,2025
 2026
 2026
 2025
 2026
($) ($) ($) ($) ($)Gross profit (GAAP)94,687 161,260 226,217 173,054 387,477Gross margin (GAAP)47.7%
 47.1%
 50.2%
 47.4%
 48.9%
Stock-based compensation (A)- 134 74 73 208Gross profit (non-GAAP)94,687 161,394 226,291 173,127 387,685Gross margin (non-GAAP)47.7%
 47.2%
 50.2%
 47.4%
 48.9%
 Operating expenses (GAAP)72,358 109,056 125,103 140,959 234,159Stock-based compensation (A)(175)
 (8,240)
 (3,344)
 (4,913)
 (11,584)
Dispute related expenses(2,841)
 (1,604)
 320 (3,118)
 (1,284)
Operating expenses (non-GAAP)69,342 99,212 122,079 132,928 221,291 Operating profit (GAAP)22,329 52,204 101,114 32,095 153,318Operating margin (GAAP)11.2%
 15.3%
 22.4%
 8.8%
 19.3%
Total adjustments to operating profit3,016 9,978 3,098 8,104 13,076Operating profit (non-GAAP)25,345 62,182 104,212 40,199 166,394Operating margin (non-GAAP)12.8%
 18.2%
 23.1%
 11.0%
 21.0%
 Non-operating income (expense) (GAAP)(1,646) 23,392 75,736 4,952 99,128Foreign exchange loss (gain), net3,302 (16) 381 2,929 365Realized/Unrealized loss (gain) on investments, net1,051 (21,759) (74,727) (2,245) (96,486) Non-operating income (expense) (non-GAAP)2,707 1,617 1,390 5,636 3,007 Net income (GAAP)16,311 66,799 136,112 35,774 202,911Total pre-tax impact of non-GAAP
adjustments7,369 (11,797) (71,248) 8,788 (83,045)Income tax impact of non-GAAP adjustments(670) (1,153) 18,281 (1,280) 17,128Net income (non-GAAP)23,010 53,849 83,145 43,282 136,994 Earnings per diluted ADS (GAAP)$0.49
 $1.97
 $3.99
 $1.06
 $5.97
Earnings per diluted ADS (non-GAAP)$0.69
 $1.58
 $2.43
 $1.28
 $4.01
 Shares used in computing earnings per diluted ADS (GAAP)33,562 33,916 34,097 33,681 34,006Non-GAAP adjustments18 221 154 33 188Shares used in computing earnings per diluted ADS (non-GAAP)33,580 34,137 34,251 33,714 34,194 (A)Excludes stock-based compensation as follows:
Cost of sales- 134 74 73 208Research & development55 4,788 1,630 3,058 6,418Sales & marketing79 2,007 863 941 2,870General & administrative41 1,445 851 914 2,296 Silicon Motion Technology CorporationConsolidated Balance Sheets(In thousands, unaudited)  Jun. 30, Mar. 31, Jun. 30, 2025 2026 2026 ($) ($) ($)Cash and cash equivalents208,043 135,677 74,367Accounts receivable, net220,924 220,445 323,638Inventories208,005 515,250 673,042Restricted assets – current70,308 71,268 103,918Prepaid expenses and other current assets68,040 58,915 41,526Total current assets775,320 1,001,555 1,216,491Long-term investments19,620 51,823 127,403Property and equipment, net208,826 224,553 232,805Other assets29,997 29,077 28,532Total assets1,033,763 1,307,008 1,605,231 Accounts payable37,455 94,503 103,338Loans- - 59,183Income tax payable17,370 31,440 37,969Accrued expenses and other current liabilities134,377 225,260 281,716Total current liabilities189,202 351,203 482,206Other long-term liabilities55,620 49,683 76,177Total liabilities244,822 400,886 558,383Shareholders’ equity788,941 906,122 1,046,848Total liabilities & shareholders’ equity1,033,763 1,307,008 1,605,231 Silicon Motion Technology CorporationCondensed Consolidated Statements of Cash Flows(in thousands, unaudited)  For Three Months Ended For Six Months Ended Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30, 2025
 2026
 2026
 2025
 2026
 ($) ($) ($) ($) ($)Net income16,311 66,799 136,112 35,774 202,911Depreciation & amortization7,445 8,954 9,273 14,670 18,227Stock-based compensation175 8,374 3,418 4,986 11,792Investment losses (gain) & disposals1,053 (21,733) (74,684) (2,256) (96,417)Changes in operating assets and liabilities(42,258) (93,619) (137,899) (20,176) (231,518)Net cash provided by (used in) operating activities(17,274) (31,225) (63,780) 32,998 (95,005) Purchase of property & equipment(15,551) (18,221) (7,733) (27,212) (25,954)Proceeds from disposal of properties- 87 - 13 87Net cash provided by (used in) investing activities(15,551) (18,134) (7,733) (27,199) (25,867) Dividend payments(16,746) (16,918) (16,922) (33,702) (33,840)Share repurchases(21) - - (24,312) -Bank loan- - 59,183 - 59,183Net cash provided by (used in) financing activities(16,767) (16,918) 42,261 (58,014) 25,343 Net increase (decrease) in cash, cash equivalents & restricted cash(49,592 (66,277 (29,252 (52,215 (95,529Effect of foreign exchange changes124 80 170 161 250Cash, cash equivalents & restricted cash—beginning of period331,747 277,081 210,884 334,333 277,081Cash, cash equivalents & restricted cash—end of period282,279 210,884 181,802 282,279 181,802
About Silicon Motion:

We are the global leader in supplying NAND flash controllers for solid state storage devices.  We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications.  We also supply customized high-performance hyperscale data centers and specialized industrial and automotive SSD solutions.  Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs.  For further information on Silicon Motion, visit us at www.siliconmotion.com.

Forward-Looking Statements:
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customers’ businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customers’ business taking into account the ongoing U.S.-China tariffs and trade disputes; other factors beyond our control such as natural disasters, terrorism, civil unrest, war, including conflicts in the Middle East, threats to the Strait of Hormuz and global energy supply routes, and the ongoing Russia-Ukraine War, and pandemics, epidemics and other health emergencies; the continuing tensions between Taiwan and China, including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our Board of Directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; the risk that the anticipated benefits from our PCIe 5 controller products, including higher average selling prices, may not be maintained or may be less than expected; the risk that our anticipated market share gains across our product lines and penetration of enterprise end markets may not materialize as expected or on the anticipated timeline; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2026. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

Silicon Motion Investor Contacts:

TAIPEI, Taiwan and MILPITAS, Calif., July 24, 2026 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”), a global leader in designing and marketing NAND flash controllers for solid state storage devices, confirms today its quarterly cash dividend.

On October 27, 2025, the Board of Directors of the Company declared payment of an annual dividend of US$2.00 per ADS1, equivalent to US$0.50 per ordinary share, which will be paid in four quarterly installments of $0.50 per ADS, equivalent to US$0.125 per ordinary share. According to the previously announced record and payment dates, the next quarterly installment will be paid on August 20, 2026 to all shareholders of record on August 6, 2026. Our depository bank’s DR Books will be closed for issuance and cancellation on August 6, 2026.

The declaration and payment of future cash dividends are subject to the Board's continuing determination that the payment of dividends is in the best interests of the Company’s shareholders and are in compliance with all laws and agreements of the Company applicable to the declaration and payment of cash dividends.

ABOUT SILICON MOTION:

We are the global leader in supplying NAND flash controllers for solid state storage devices. We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications. We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.com.

FORWARD-LOOKING STATEMENTS:

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; other factors beyond our control such as nature disasters, terrorism, civil unrest, war, including conflicts in the Middle East, threats to the Strait of Hormuz and global energy supply routes, and the ongoing Russia-Ukraine War, and pandemics, epidemics and other health emergencies; the continuing tensions between Taiwan and China, including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our Board of Directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; the risk that the anticipated benefits from our PCIe 5 controller products, including higher [average selling prices], may not be maintained or may be less than expected; the risk that our anticipated market share gains across our product lines and penetration of enterprise end markets may not materialize as expected or on the anticipated timeline; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2026. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

Investor Contact:Investor Contact:Tom SepenzisSelina HsiehVice President of Investor Relations & StrategyInvestor RelationsE-mail: [email protected] E-mail: [email protected]   Media Contact: Minnie Lin Director of Marketing Communication Department E-mail: [email protected]   
1 One ADS is equivalent to four ordinary shares.

Key Takeaways SIMO has gained 307.4% in the past year, outpacing its industry and peers, AMD and IBM.Silicon Motion expects Q2 2026 revenues of $393M-$411M, up 15%-20% sequentially.SIMO's SSD controller ramps and fabless model support growth in AI, cloud and automotive. Silicon Motion Technology Corporation (SIMO - Free Report) has gained a stellar 307.4% over the past year compared with the industry’s growth of 221.9%. It has also outperformed peers like Advanced Micro Devices, Inc. (AMD - Free Report) and International Business Machines Corporation (IBM - Free Report) . While Advanced Micro has gained 284.2%, IBM has lost 1% over the same period. 

One-Year SIMO Stock Price Performance

Image Source: Zacks Investment Research

SIMO Buoyed by Health Portfolio TractionSilicon Motion has strengthened its position as the leading independent supplier of client SSD (solid-state drive) controllers to module makers, serving many of the top manufacturers across the United States, Taiwan and China. The company has worked closely with NAND flash vendors to develop proprietary controller technologies that address the limitations of 3D NAND architecture, enabling it to maintain a competitive edge. With initial shipments of its 3D SSD controllers already underway, Silicon Motion expects these products to become a key growth driver over the coming year as its flash partners continue expanding 3D NAND production capacity.

The company has also begun mass production of PCIe NVMe client SSD controllers for its flash partners, positioning itself to benefit from growing SSD demand and favorable industry dynamics. Further strengthening its portfolio, Silicon Motion introduced the industry's first PCIe Gen5 client SSD controller, the SM2508, built on TSMC's advanced 6nm EUV process. The controller delivers up to 50% lower power consumption than comparable 12nm solutions while offering as much as 1.7 times greater power efficiency than PCIe Gen4 SSDs.

Beyond client SSDs, Silicon Motion continues to broaden its market reach by expanding SSD controller programs with PC OEMs and increasing shipments of eMMC and UFS controllers for smartphones, automotive systems and IoT devices. The company is also preparing to launch its next-generation enterprise-class SSD controllers, which should further diversify its growth opportunities. Its eMMC business is showing encouraging signs of recovery, reinforcing the strength of its embedded storage portfolio. As the market shifts from legacy eMMC 4.5 to the more advanced eMMC 5.1 standard, Silicon Motion expects rising demand for its latest eMMC controllers to provide another meaningful avenue for growth.

Fabless Business Model Provides a Competitive AdvantageSilicon Motion operates under a fabless business model, concentrating on the design and development of semiconductor chips while outsourcing manufacturing to leading foundries such as TSMC. This approach significantly reduces capital expenditure by eliminating the need to invest in costly fabrication facilities. As a result, the company can rapidly adopt the latest manufacturing technologies, improve profitability through higher margins and dedicate greater resources to research, innovation and product development instead of managing manufacturing operations.

The company is well-positioned to benefit from several high-growth end markets, including artificial intelligence (AI), high-performance computing (HPC), cloud data centers, automotive storage and smartphones and other mobile devices. These markets continue to expand, creating substantial opportunities for the company. We believe Silicon Motion's broadening customer base, coupled with its continued focus on developing innovative storage controller solutions, will support sustained revenue growth in the years ahead.

Image Source: Zacks Investment Research

SIMO Offers Bullish GuidanceFor the second quarter of 2026, Silicon Motion expects revenues in the range of $393 million to $411 million, representing sequential growth of 15% to 20% and year-over-year growth of 98% to 107%. Management expects continued momentum through 2026, supported by new product ramps, expanding enterprise opportunities and sustained market share gains across its core businesses.

Estimate Revision TrendEarnings estimates for Silicon Motion for 2026 have moved up 88.7% to $8.87 over the past year, while the same for 2027 have increased 88.4% to $10.87. The positive estimate revision depicts optimism about the stock’s growth potential.

Image Source: Zacks Investment Research

End NoteWith solid fundamentals and healthy revenue-generating potential, driven by robust demand trends, Silicon Motion appears to be a solid investment proposition. Further, a strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements are driving more value for customers. An asset-light fabless semiconductor model, solid growth exposure to AI, cloud and automotive markets, with increasing market share in SSD and mobile controllers and continuous innovation in storage technologies are key growth drivers for the company.

The stock has a long-term earnings growth expectation of 53.6% and delivered a trailing four-quarter average earnings surprise of 18.6%. Silicon Motion sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Riding on a robust earnings surprise history and favorable Zacks Rank, Silicon Motion appears primed for further stock price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.

Silicon Motion Technology (NASDAQ:SIMO) had its price target raised to $400 from $230 by Wedbush, which reiterated an ‘Outperform’ rating, citing stronger forward estimates and a higher valuation multiple reflecting improving growth visibility.

Shares of Silicon Motion added almost 5% at $337 on the news.  

Wedbush said it is raising its outlook as it updates its model to better reflect “improving opportunities and shifts in fundamentals,” noting that both earnings estimates and the multiple have been increased to align with SIMO’s expected growth profile.

The firm pointed to a more constructive view on client SSD demand, driven by a combination of higher assumed market share and improving average selling prices tied to new product cycles.

It also highlighted next-generation Gen 5 PCIe controllers as a key pricing driver, noting they are being sold at a premium versus prior-generation products.

Wedbush added that SIMO’s share gains are expected to become more visible in the second half of the year as newer 4-channel mainstream controllers ramp across NAND manufacturers. The company’s share is currently around 30%, according to the note.

On enterprise storage, Wedbush highlighted growing traction for the MonTitan platform, which is beginning to ship in limited volumes and is expected by the company to reach mid-single-digit to low-double-digit percentages of revenue by the end of 2026.

The firm also sees potential upside into 2027 driven by strengthening demand from enterprise customers and emerging neocloud and AI infrastructure requirements.

In embedded, Wedbush pointed to continued opportunities across automotive and data center-related products, including expanding content in networking and boot drive applications, with additional wins referenced at large infrastructure and search-related customers.

The firm raised its estimates for 2026 and 2027 to $1.64 billion and $2.09 billion in revenue respectively, alongside higher EPS forecasts, reflecting stronger assumed growth across SSD, embedded, and enterprise segments.

Despite the more optimistic outlook, Wedbush noted its revised model may still understate potential upside, particularly if NAND pricing remains supportive, enterprise adoption accelerates, and share gains continue in key regions such as China.