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Certification validates that the company's automotive cybersecurity engineering and management processes meet internationally recognized requirements

, /PRNewswire/ -- Silicon Motion Technology Corporation (NasdaqGS: SIMO), a global leader in designing and marketing NAND flash controllers for solid-state storage devices, today announced that it has earned ISO/SAE 21434:2021 Automotive Cybersecurity Process Certification from SGS-TÜV Saar. The certification independently validates that Silicon Motion's automotive cybersecurity development and management processes meet the requirements of ISO/SAE 21434, the internationally recognized standard for cybersecurity engineering in road vehicles. This achievement demonstrates the company's ability to systematically identify, assess and manage cybersecurity risks throughout the automotive product lifecycle, reinforcing its commitment to delivering secure and reliable automotive storage solutions.

ISO/SAE 21434 Automotive Cybersecurity Process Certification ISO/SAE 21434 was developed to address the growing cybersecurity risks created by increasingly connected and software-defined vehicles. It provides a structured framework for identifying, assessing and managing cybersecurity risks throughout the lifecycle of automotive electrical and electronic systems. The standard also provides a recognized engineering framework that supports compliance with UNECE UN Regulation No. 155 (UN R155), including its Cyber Security Management System (CSMS) requirements for vehicle type approval in the European Union. By establishing common processes, responsibilities and documentation requirements, ISO/SAE 21434 helps automakers and suppliers integrate cybersecurity into product development, meet evolving regulatory expectations and respond effectively to emerging threats.

"As a leading provider of automotive storage solutions with more than a decade of industry experience, Silicon Motion recognizes that cybersecurity is fundamental to the development of next-generation connected and software-defined vehicles," said Nelson Duann, Senior Vice President of Edge and Automotive Storage Business at Silicon Motion. "Earning this certification reflects our commitment to embedding cybersecurity throughout the product lifecycle and delivering secure, reliable and automotive-grade storage solutions that help customers meet evolving cybersecurity requirements."

"ISO/SAE 21434 establishes a rigorous, internationally recognized benchmark for managing cybersecurity risks throughout the automotive product lifecycle," said Robert Chang, C&P Division VP of SGS Taiwan. "By earning this process certification, Silicon Motion has demonstrated that its automotive cybersecurity development and management processes meet this high standard, underscoring the company's capabilities and commitment to secure and reliable product development for the global automotive industry."

Silicon Motion will continue to advance its automotive cybersecurity capabilities and deliver a comprehensive portfolio of secure and reliable storage solutions for connected, software-defined and AI-powered vehicles. Through ongoing innovation and close collaboration with partners across the global automotive ecosystem, the company remains committed to advancing trusted storage technologies for the future of intelligent mobility. For more information, visit Silicon Motion Automotive Solutions.

About Silicon Motion

Silicon Motion Technology Corporation (NasdaqGS: SIMO) is the global leader in supplying NAND flash controllers for solid-state storage devices. 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 eMMC and UFS devices, and Ferri solutions for automotive and Physical AI applications. Its controllers and storage solutions combine high performance, power efficiency and proven reliability to support AI infrastructure, Edge AI and Physical AI applications.

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SOURCE Silicon Motion Technology Corporation

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 gained 186.1% in the past year, supported by strong fundamentals and robust demand trends.Its NAND controller strength, PCIe Gen5 adoption and broader OEM engagements are key growth drivers.The fabless model supports R&D, operating flexibility and exposure to AI, cloud and automotive growth. Silicon Motion Technology Corporation (SIMO - Free Report) has gained a stellar 186.1% over the past year compared with the industry’s growth of 195.5%. It has outperformed peers like International Business Machines Corporation (IBM - Free Report) but lagged Advanced Micro Devices, Inc. (AMD - Free Report) . While IBM is down 5.6%, Advanced Micro has soared 201.4% over this period. 

One-Year SIMO Stock Price Performance

Image Source: Zacks Investment Research

Portfolio Strength: SIMO’s Competitive AdvantageSilicon Motion is benefiting from its strong position in the NAND flash controller market, expanding customer engagements and continued product innovation. The company is a leading merchant supplier of client SSD controllers to module makers, serving major customers across the United States, Taiwan and China.

Its close collaboration with NAND flash manufacturers is a key strength. Silicon Motion has developed proprietary controller technologies to improve the performance, reliability and power efficiency of advanced 3D NAND solutions. Growing adoption of these controllers, coupled with continued expansion in 3D NAND capacity, should support SSD controller revenues.

The company is also witnessing solid momentum in PCIe NVMe client SSD controllers. Its SM2508 PCIe Gen5 client SSD controller, built on TSMC’s 6-nanometer EUV process, offers significantly improved power efficiency and performance over earlier-generation solutions. Increasing adoption of PCIe Gen5 across PCs and other high-performance computing applications is expected to create incremental growth opportunities.

Silicon Motion is also expanding its footprint beyond traditional client SSDs. The company continues to broaden engagements with PC OEMs while strengthening its eMMC and UFS controller portfolio for smartphones, automotive applications and IoT devices. The upcoming launch of next-generation enterprise SSD controllers should further widen its addressable market and increase exposure to higher-value storage applications.

An improving demand for eMMC products is supporting the embedded storage business. The continued transition toward newer eMMC standards, including eMMC 5.1, will likely provide additional opportunities for controller sales.

Fabless Business Model: SIMO’s X-FactorSilicon Motion’s fabless business model offers a key advantage. By focusing on semiconductor design while outsourcing production to foundry partners such as TSMC, the company can limit capital expenditure requirements and quickly adopt advanced process technologies.

This asset-light structure allows Silicon Motion to devote greater resources to research and development while maintaining operating flexibility. Access to leading-edge manufacturing nodes also helps improve performance, power efficiency and product economics, strengthening the company’s competitive position.

Silicon Motion appears well-positioned to capitalize on rising storage demand across AI, high-performance computing, cloud data centers, automotive systems, smartphones and connected devices. Its expanding customer base, diversified product portfolio and continued innovation remain key catalysts for top-line growth.

The company’s scale further reinforces its market position. Silicon Motion has shipped more than 5 billion controllers cumulatively over the past decade and averages more than 750 million NAND controller shipments annually. This broad installed base and extensive industry experience should help the company benefit from the long-term growth in global data generation and storage requirements.

Image Source: Zacks Investment Research

Estimate Revision TrendEarnings estimates for Silicon Motion for 2026 have moved up 134.9% to $11.16 over the past year, while the same for 2027 has increased 187.2% to $16.34. The positive estimate revision depicts bullish sentiment 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 14%. 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 (SIMO +2.17%) is one of the most promising memory chip stocks that you probably haven't heard of. It has more than doubled this year, but its market cap is still below $10 billion.

The growth stock has also dropped by roughly 30% from its all-time high, but that price action is all the more jarring due to the company's fundamentals. Here's what investors should know about Silicon Motion before determining if it is a buying opportunity.

Image source: Getty Images.

NAND flash controllers enable AI infrastructure Silicon Motion produces NAND flash controllers, which are essential components for solid-state drives because they let companies scale up agentic AI. The company works with some of the largest memory makers, including Micron, Sandisk, SK Hynix, and Samsung. When each of these companies reports record sales and optimistic forecasts, it's a clear indication of how well Silicon Motion will perform in its upcoming quarter.

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For instance, the company delivered 127% year-over-year revenue growth in its second quarter, along with a 32% sequential boost in sales. CEO Wallace Kou also told investors to expect "high-quality revenue and profitability growth for years to come."

Those results came as memory-chip makers crushed expectations, raised guidance, and told investors about their multiyear deals with large customers. With those tailwinds for Silicon Motion's key customers, it's no surprise that the company delivered excellent second-quarter results.

The dip has resulted in a more compelling valuation The company's fundamentals have continued to improve. Not only are sales up significantly, but it's also delivering higher net margins. Profits more than doubled sequentially, lifting its net profit margin to 30.2% in the process.

These results don't jibe with the slide the stock has taken over the past couple of months. Silicon Motion now trade at a 30 price-to-earnings ratio (P/E). That's a nearly identical valuation to the S&P 500 despite the former achieving much higher growth than the average company in the index.

Kou told investors that he expects the business's momentum to continue through the second half of the year. The company has only become stronger, but recent stock price movements do not reflect that reality.

It's important to consider that top memory-chip makers like Micron and Sandisk recently delivered quarterly results that crushed their guidance. Silicon Motion is currently anticipating revenue growth of up to 124% year-over-year and up to 20% sequentially. It's reasonable to assume that it will outpace its forecasts just as its top customers have done.

Micron told investors in its fiscal 2026 second-quarter report to expect revenues of $33.5 billion at the midpoint in its fiscal 2026 third quarter. Once the company's results arrived, Micron actually showed $41.46 billion in revenue.

If Silicon Motion delivers a similar beat, its current average valuation will become even more compelling. That could result in a big spike when the company reports earnings in late October.

The memory chip trade has multiple years left Silicon Motion hinted at multiple years of growth, and top customers like Micron and Sandisk have been signing multiyear sales deals with tech giants. However, the biggest recent news came from Samsung, which has made a set of deals that lock in buyers for 70% of its chip capacity through 2031.

These long-term deals will intensify and prolong the memory chip shortage and increase the need for Silicon Motion's NAND flash controllers.

These deals demonstrate that AI isn't a one- or two-year story. The growth stocks that are riding this momentum can continue to outpace the S&P 500 for another decade or more. Physical AI will further boost the demand for memory chips and all of the necessary components for AI infrastructure.

Silicon Motion is well positioned to benefit, yet the stock remains under the radar. Those two factors are key reasons the stock looks like a buy at current levels.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Silicon Motion (SIMO - Free Report) .

Silicon Motion currently has an average brokerage recommendation (ABR) of 1.09, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 11 brokerage firms. An ABR of 1.09 approximates between Strong Buy and Buy.

Of the 11 recommendations that derive the current ABR, 10 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 90.9% and 9.1% of all recommendations.

Brokerage Recommendation Trends for SIMO

Check price target & stock forecast for Silicon Motion here>>>

The ABR suggests buying Silicon Motion, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is SIMO Worth Investing In?In terms of earnings estimate revisions for Silicon Motion, the Zacks Consensus Estimate for the current year has increased 2.6% over the past month to $11.16.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Silicon Motion. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Silicon Motion may serve as a useful guide for investors.

Silicon Motion (SIMO - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, SIMO crossed above the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Over the past four weeks, SIMO has gained 25.5%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.

Looking at SIMO's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 6 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on SIMO for more gains in the near future.

Silicon Motion (SIMO - Free Report) closed the last trading session at $268.9, gaining 1.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $368.4 indicates a 37% upside potential.

The average comprises 10 short-term price targets ranging from a low of $325.00 to a high of $450.00, with a standard deviation of $36.94. While the lowest estimate indicates an increase of 20.9% from the current price level, the most optimistic estimate points to a 67.4% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

But, for SIMO, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in SIMOAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, six estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 27%.

Moreover, SIMO currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much SIMO could gain, the direction of price movement it implies does appear to be a good guide.

Offering includes the exercise in full of the initial purchasers' option to purchase an additional $150 million principal amount of Notes Offering includes the exercise in full of the initial purchasers' option to purchase an additional $150 million principal amount of Notes

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%.

Image Source: Zacks Investment Research

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:

Memory chip stocks have won investors' attention thanks to the artificial intelligence (AI) boom. Micron Technology and Sandisk have produced tremendous gains over the past year, and investors are scouring the market for smaller memory chipmakers that can outpace the S&P 500.

Silicon Motion Technology (SIMO +8.64%) may be a worthy candidate. This chip stock has almost tripled in value year-to-date, but its market cap is still under $10 billion and its valuation metrics are reasonable given its growth efforts. All of the growth is driven by fundamentals, and the company's guidance implies that revenue growth will continue to accelerate.

Image source: Getty Images.

NAND flash controllers are a critical part of the memory boom Silicon Motion Technology supplies NAND flash controllers, which act as the brains behind solid-state storage devices and systems that use NAND flash memory. These NAND flash controllers are central parts of Sandisk's storage products, which have been flying off the shelves due to the AI boom.

The company also lists Micron, SK Hynix, and Samsung as customers. Each of these memory chipmakers has posted superb revenue growth and optimistic guidance in recent quarters, and Silicon Motion Technology has been a major beneficiary.

Revenue more than doubled year over year in Silicon Motion Technology's second quarter results. Sales increased by 32% sequentially and smashed guidance in the process. The company also forecast up to $541 million in Q3 sales, representing a 20% sequential improvement.

Silicon Motion Technology is already posting impressive results while staying under the radar. Its fundamental growth is fueled by the leaders of the AI boom, who are securing multi-year deals with their biggest customers.

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Momentum is expected to continue Silicon Motion Technology CEO Wallace Kou told investors that they expect momentum to "continue into the second half" of 2026 and that the company is "building a resilient platform for sustainable, high-quality revenue and profitability growth for years to come."

It further dispels concerns about a cyclical downturn for memory chips. The AI boom is still in its early innings, with agentic AI, humanoid robots, and self-driving vehicles on the horizon. The company said in its Q2 press release that it is "well positioned across every AI market, including AI data center, AI server, edge AI, and physical AI."

Incredible guidance and an upbeat outlook for future quarters suggest that Silicon Motion Technology can continue to outperform the S&P 500. Few companies can compete with Silicon Motion Technology's product portfolio and customer connections. This company is an example of focusing on strengthening fundamentals rather than believing investors missed out on the rally just because shares have almost tripled over the past year.

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Five Nasdaq-listed companies share the same deadline this week: all go ex-dividend on August 6, 2026. To collect the upcoming payment, investors need to own shares before the ex-date begins, which means the last day to buy is today, August 5, 2026. Miss it, and the next likely window is a full quarter away.

Quick refresher on the mechanics: the ex-dividend date is the cutoff. Buy before that date, and you are on the record book for the payment. Buy on the ex-date or after, and the seller keeps the dividend. The payment date is simply when cash hits your account, typically a week or two later. Just remember: the dividend date gets you in line for the payout, but it does not make the stock a buy on its own.

Wintrust Financial (WTFC) Wintrust Financial (NASDAQ:WTFC | WTFC Price Prediction) is the highest-quality income name in this group. The Rosemont, Illinois regional bank pays a $0.55 quarterly dividend with a $2.20 annualized rate, translating to a 1.32% forward yield at the current $163.28 price. The ex-date is August 6, 2026, with payment on August 20, 2026. Buy by market close on August 5 to qualify.

Coverage looks excellent. Wintrust earns $12.44 in trailing EPS, so the $2.20 annual payout is a payout ratio in the mid-teens. The company delivered its sixth consecutive quarter of record net income in Q2 and raised the quarterly dividend from $0.50 to $0.55 in early 2026, a 10% bump. Shares are up 16.7% year to date, and the stock trades at a modest 13x earnings.

Silicon Motion Technology (SIMO) Silicon Motion Technology (NASDAQ:SIMO) designs NAND flash controllers and pays a $0.50 quarterly dividend on its ADS, or $2.00 annualized. On the current $268.49 price, that is a 0.79% yield. The dividend goes ex on August 6, 2026 and pays August 20, 2026.

The yield is thin because the stock has run: SIMO is up 184.1% year to date on the back of an AI storage cycle that lifted Q2 revenue 127% year over year. Coverage is exceptional. Trailing EPS runs $8.55, and non-GAAP Q2 EPS came in at $2.43, dwarfing the $0.50 quarterly commitment. Payout ratio sits comfortably below a quarter of earnings.

Franklin Electric (FELE) Franklin Electric (NASDAQ:FELE), the Fort Wayne-based maker of fuel and water pumping systems, declared its $0.28 quarterly dividend on July 27, 2026. The ex-date is August 6, 2026, with payment August 20, 2026. Annualized at $1.12, the forward yield is 1.04% on a $109.92 share price.

The same investor newsletter that told subscribers to buy Amazon in 2002, Netflix in 2004, and Nvidia in 2005 still publishes two new stock picks every month. Over 23 years, Motley Fool's Stock Advisor has more than quadrupled the S&P 500. New members get this month's picks, the Top 10 Rankings, and a 30-day money-back guarantee. Click here to unlock their next top stocks while new members are still being accepted.

FELE raised the quarterly payout from $0.265 to $0.28 in early 2026, extending a multi-decade streak of increases. Trailing EPS of $3.48 covers the $1.12 annual payout roughly three times over. Q2 adjusted EPS beat at $1.55, and management raised full-year guidance to $4.50 to $4.70. The stock trades at a full 31x trailing earnings, so investors are paying up for the reliability.

TriMas (TRS) TriMas (NASDAQ:TRS), a Michigan-based maker of packaging and aerospace components, pays a token $0.04 quarterly dividend, or $0.16 annualized. At $40.51, that works out to a 0.39% yield. The stock goes ex-dividend on August 6, 2026, with payment set for August 13, 2026, one of the quickest payout windows in this group.

The payout itself is well covered. Trailing EPS of $1.49 and FY2026 guidance of $1.60 to $1.70 in adjusted EPS make the $0.16 annual dividend a small obligation. The catch is growth: TRS has held the dividend flat for years, so this is more of a modest capital-return feature than a growth-of-income story. Shares are up 14.4% year to date.

Eagle Bancorp (EGBN) Eagle Bancorp (NASDAQ:EGBN), a Maryland community bank, is the weakest name here and carries the clearest risk flag. The quarterly dividend was slashed from $0.165 to $0.01 earlier in 2026, a 94% reduction. The August 6, 2026 ex-date and August 17, 2026 payment are confirmed, but the annualized $0.04 payout yields just 0.14%.

The Bottom Line All five ex-dates are confirmed for August 6, 2026, which makes today the buy-by deadline. Look past the single quarterly payment: WTFC and FELE are the best-covered dividend growers, SIMO is a low-yield technology story on a hot streak, TRS is a token payer, and EGBN is a credit turnaround story wearing a dividend label. Miss the ex-date, and the next likely window is roughly November.

If You'd Bought Amazon When the Motley Fool Said To…In September 2002, Stock Advisor told subscribers to buy Amazon. In December 2004, Netflix. In April 2005, Nvidia. The newsletter still publishes two new stock picks every month — and over 23 years, has more than quadrupled the S&P 500. Here's how to get this month's picks:

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Five years from now, you'll probably wish you'd bought this month's picks. Don't miss them.

Contact [email protected] for any questions or corrections.

TAIPEI, Taiwan--(BUSINESS WIRE)-- #AIStorage--Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion”), a global leader in designing and marketing NAND flash controllers for solid-state storage devices, today announced it will showcase its latest storage innovations for AI Factory, Edge AI, and Physical AI applications at Future of Memory and Storage (FMS) 2026, taking place August 4 to 6 in Santa Clara, California, at Booth #315. As AI evolves beyond large language model training toward Ag.

SIMO is posting record revenue, expanding margins and growing AI and enterprise storage exposure as investors weigh its premium valuation.

TAIPEI, Taiwan--(BUSINESS WIRE)-- #DataCenterStorage--Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion”), a global leader in designing and marketing NAND flash controllers for solid-state storage devices, today announced it will showcase its latest storage innovations for AI Factory, Edge AI, and Physical AI applications at Future of Memory and Storage (FMS) 2026, taking place August 4 to 6 in Santa Clara, California, at Booth #315. As AI evolves beyond large language model training toward Ag.

Silicon Motion Technology (SIMO -0.59%) left little doubt about memory chip demand when it reported second-quarter results. It was reasonable for bullish investors to expect outperformance after Micron more than quadrupled its year-over-year revenue, but the results still caught some people off guard.

It wasn't just a win for Silicon Motion. Q2 results imply that growth will continue throughout the year and stretch beyond 2026. Here's what investors should know.

Image source: Getty Images.

Analyzing the results Silicon Motion specializes in key memory products, including NAND flash controllers, eMMC and UFS controllers, and solid-state drives. Back when the company reported Q1 results, it told investors to expect up to $411 million in Q2 sales.

Now that Q2 results are in, Silicon Motion reported $451 million in sales, a 127% year-over-year increase. Crushing guidance came along with a 32% sequential growth rate.

It's not surprising to see that Silicon Motion did well in this quarter since multiple chipmakers and tech giants have also delivered solid results. It's also not surprising that the company anticipates up to 20% sequential growth in Q3. After all, Micron offered a similar forecast.

Memory demand is set to grow beyond 2026 The results and guidance were solid but expected. However, Silicon Motion CEO Wallace Kou shared an unexpected key detail in the Q2 press release.

He said that Silicon Motion is "building a resilient platform for sustainable, high-quality revenue and profitability growth for years to come."

That "years to come" bit is the most important part. It implies that growth won't fizzle out after 2026 but that Silicon Motion will build on this momentum in 2027 and beyond. It's a major blow to the bearish thesis that the cyclical nature of the memory industry will catch up with chipmakers.

Silicon Motion isn't the only memory chipmaker with sights set beyond 2026. Micron told investors in its fiscal 2026 Q3 results that it executed "transformational strategic customer agreements" that provide multiple years of revenue visibility.

Sandisk CEO David Goeckeler also mentioned a new business model "built on multi-year customer engagements backed by firm financial commitments" when it announced fiscal 2026 Q3 results at the end of April. Investors can expect an update when the company reports fiscal 2026 Q4 results in August. Given Micron's successful use of this business model and Silicon Motion's multiyear narrative, it's feasible for Sandisk to confirm multiyear deals in August.

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Physical AI hasn't entered the scene yet Artificial intelligence (AI) models like ChatGPT and Claude have dominated the headlines, while physical AI remains in its early stages. Autonomous vehicles and humanoid robots are bound to become big hits once the technology is mastered, and all of this physical AI will require memory chips.

Grand View Research projects a 38.2% compound annual growth rate (CAGR) for the humanoid robot market through 2033. That's just for one physical AI product. Self-driving vehicles are another major catalyst that can boost the demand for memory products for multiple years.

Elon Musk is vying for market share in both of these opportunities. Tesla (TSLA +0.76%) is working on its Optimus bots and robotaxi fleet. That's why it was very notable when he praised Micron twice during Tesla's earnings call.

Meanwhile, tech giants have either raised their capital expenditure targets or boosted the lower end of their guidance. Capital will continue to flow into AI infrastructure in the pursuit of compelling opportunities. Silicon Motion and other memory chipmakers are positioned to benefit from this trend for multiple years.

AI models and agentic AI can still boost demand for memory chips, but once physical AI enters the scene, chip prices can surge even higher.

Key Takeaways Silicon Motion reported Q2 revenues of $451M, up 127% year over year with EPS above estimates. SIMO's MonTitan enterprise SSD controller entered production with two Tier 1 customers.Silicon Motion expects 2026 revenues to more than double as enterprise products expand. Silicon Motion Technology Corporation (SIMO - Free Report) used its second-quarter 2026 earnings call to highlight a rapid shift toward AI infrastructure and storage solutions, as management emphasized growth beyond traditional NAND controller markets. Executives pointed to enterprise, automotive and AI-related products as key contributors to the company’s changing revenue mix.

The company also raised its near-term outlook, citing strong demand across multiple product lines and continued customer adoption of newer solutions. Management’s commentary focused on product diversification, margin expansion and longer-term opportunities in AI-driven storage.

SIMO Expands Beyond Consumer StorageSIMO reported second-quarter revenues of $451 million, up 32% sequentially and 127% year over year. Revenues beat the Zacks Consensus Estimate of $403.6 million. Non-GAAP earnings per ADS were $2.43, which surpassed the consensus mark of $2.13. Gross margin reached 50.2%.

CEO Chia-Chang Kou said the company is moving from a consumer-focused NAND flash controller business toward a broader portfolio spanning AI infrastructure, enterprise storage and edge applications. He highlighted growth in embedded eMMC and UFS products, SSD controllers and storage solutions.

Management noted that Ferri automotive and enterprise Boot Drive solutions more than doubled sequentially in the quarter and represented nearly 30% of revenues, compared with 4% a year earlier.

Silicon Motion Builds AI Storage PipelineSilicon Motion said its MonTitan enterprise SSD controller business entered commercial production during the quarter with two Tier 1 customers. Management expects five additional Tier 1 customers to ramp in the second half of 2026.

Kou explained that initial MonTitan contributions are centered on TLC-based solutions supporting AI compute storage applications, including near-GPU and near-CPU storage use cases. The company expects QLC-based solutions to become more meaningful later as NAND availability improves.

The CFO said MonTitan remains on track to contribute 5% to 10% of total revenues exiting 2026. Management expects TLC solutions to drive early growth, with broader QLC adoption developing over time.

SIMO Sees Strength in Enterprise DemandSIMO’s management emphasized that enterprise-focused products are becoming increasingly important as AI infrastructure demand expands. The company said its Boot Drive business is gaining traction across DPU, GPU, switch and server-related applications.

Kou said the company’s DRAM-less enterprise Boot Drive solutions provide advantages in cost, security and performance for emerging AI infrastructure applications. He added that Silicon Motion does not currently see significant competition from NAND makers or module suppliers in this market.

During Q&A, a JPMorgan analyst asked about the size and competitive outlook for Boot Drives. Management responded that demand is expanding because server racks require many Boot Drive units, creating a sizable opportunity as AI infrastructure scales.

Silicon Motion Raises Near-Term OutlookSilicon Motion guided third-quarter revenues in the range of $519 million to $541 million, representing 15% to 20% sequential growth and 114% to 124% year-over-year growth. Non-GAAP operating margin is expected to be in the range of 27.5% to 28.5%.

CFO Jason Tsai said third-quarter growth should come from nearly all product segments, led by Ferri automotive solutions, enterprise Boot Drives and MonTitan enterprise SSD controllers. Gross margin is expected to remain elevated due to a stronger mix of higher-value products.

Management also said 2026 revenues are expected to more than double year over year, supported by new enterprise products, expanding market share and a broader customer base.

SIMO Navigates Memory ConstraintsSIMO executives discussed industry supply pressures, noting that rising NAND and DRAM prices are creating challenges for consumer electronics markets. Management expects NAND supply constraints to continue while new capacity additions develop.

Kou said smartphone demand remains challenged, particularly in lower-end devices affected by higher memory costs. However, he noted that Silicon Motion continues to benefit from market share gains and increased adoption of newer UFS controllers.

A Wedbush analyst questioned gross margin durability given the company’s embedded business mix. Tsai responded that MonTitan and PCIe 5 controller growth are helping offset margin pressure from other product categories.

Silicon Motion Maintains Long-Term FocusSilicon Motion’s management presented its strategy around creating a more balanced business with exposure across AI data centers, enterprise storage, automotive and edge applications. Executives emphasized that newer markets should provide longer product cycles and greater visibility.

The company continues investing in next-generation controllers, including PCIe Gen 6 technology. Management said it expects these products to support future growth as AI infrastructure requirements evolve.

Zacks Rank and Style Scores SignalsSilicon Motion carries a Zacks Rank #1 (Strong Buy), indicating favorable earnings estimate revision trends under the Zacks Rank methodology. The Zacks Rank focuses on the direction and magnitude of earnings estimate revisions and is designed to help identify stocks with stronger near-term performance potential. You can see the complete list of today’s Zacks #1 Rank stocks here.

The stock has a Value Score of D, Growth Score of F, Momentum Score of A and a VGM Score of F. Zacks Style Scores evaluate characteristics such as valuation, growth and momentum, with higher grades indicating stronger relative attributes. A stock’s Zacks Rank can change as analysts update earnings estimates following quarterly results.
 

Silicon Motion Technology (SIMO +21.66%) shares launched 34.3% higher on Wednesday morning after the company reported strong Q2 2026 results. By 2:30 p.m. ET, the surge had faded significantly but the stock was still up by a respectable 13.7%.

Boot drives and automotive take over The numbers were legitimately strong. Revenue hit $451 million against expectations of $403 million. Adjusted earnings reached $2.43 per share versus the $2.11 analyst consensus. Revenue more than doubled year over year. Making the controllers that manage data storage in everything from smartphones to AI servers turns out to be a lucrative business in this era of soaring data storage costs.

The real story is how quickly Silicon Motion's business mix is changing. A year ago, the Ferri automotive and enterprise boot drive solutions segment represented 4% of revenue. In Q2 2026, it hit 30%. That business more than doubled from the last quarter, driven by outrageous demand for storage in AI server infrastructure.

Image source: Getty Images.

CEO Wallace Kou explained that AI servers need up to 40 boot drives per server rack. Silicon Motion has carved out a niche here because NAND makers consider the volumes too small to bother with. Meanwhile, the company's long-standing relationships give it access to NAND supply even during shortages.

MonTitan enterprise SSD controllers also started shipping to customers in Q2. Management expects this high-margin product line to reach 5% to 10% of revenue by year-end, scaling up from essentially zero to over $50 million in quarterly revenue in six months. Ambitious, but the backlog seems to support it.

Silicon Motion guided Q3 revenue up another 15% to 20% to a midpoint of $530 million. Management believes operating margins can exceed 30% by the end of the year.

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The downside of tripling quickly So why did the stock give back 20 percentage points of gains by mid-afternoon? Simple math. Silicon Motion shares have more than tripled over the past year. The stock is down 29% over the past month even after today's jump. At some point, "beat and raise" becomes "yeah, but we already knew this was going well." Investors are trying to find the right valuation for this surprising growth phenom.

Silicon Motion delivered exactly what investors wanted. Today's price action suggests investors are balancing strong operational execution against valuation concerns after an extended rally.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Silicon Motion Technology Corporation (SIMO) Q2 2026 Earnings Call Transcript

Key Takeaways SIMO's Q2 2026 revenues jumped 127% year over year, beating estimates on broad-based storage demand.SIMO saw strong growth in SSD, eMMC UFS and Ferri solutions, led by automotive and enterprise adoption.Silicon Motion forecast Q3 non-GAAP revenues of $519-$541M with 50-51% gross margin guidance. Silicon Motion Technology Corporation (SIMO - Free Report) reported strong second-quarter 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate.

The leading developer of microcontroller integrated circuits for NAND flash storage devices delivered a robust 127% year-over-year revenue growth, supported by healthy demand for Embedded Multi-Media Card and Universal Flash Storage controllers, expanding adoption of Enterprise and Edge SSD controllers, and rapid growth in Ferri storage solutions for automotive and enterprise applications.

Net IncomeOn a GAAP basis, net income in the reported quarter improved to $136.1 million or $3.99 per American depositary share (ADS) from $16.3 million or 49 cents per ADS in the prior-year quarter, primarily due to higher net sales and gain on investments.

Non-GAAP net income was $83.1 million or $2.43 per ADS compared with $23 million or 69 cents per ADS in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of $2.13 per ADS.

RevenuesQuarterly revenues increased to $451 million from the year-ago quarter’s tally of $198.7 million, driven by broad-based strength across the company's storage controller and storage solutions businesses. The top line beat the Zacks Consensus Estimate of $403.6 million.

Management noted that in the second quarter of 2026, sales of SSD controllers increased 50-55% year over year. Embedded Multi-Media Card + Universal Flash Storage (eMMC+UFS) sales increased 95-100%, driven by strong demand for embedded storage controllers used in smartphones, IoT devices and other applications, while revenues in Ferri & Boot Drive solutions were up a stellar 1,690-1,695% year over year, fueled by rapid adoption of automotive and enterprise boot drive storage solutions.

Other DetailsDuring the quarter, non-GAAP gross profit totaled $226.3 million, up from $94.7 million in the year-ago quarter, with respective margins of 50.2% and 47.7%. Non-GAAP operating expenses increased to $122.1 million from the prior-year figure of $69.3 million. Non-GAAP operating income increased to $104.2 million from $25.3 million on higher revenues, with margins of 23.1% and 12.8%, respectively.

Cash Flow & LiquidityAs of June 30, 2026, Silicon Motion had cash and cash equivalents of $74.4 million and $59.2 million in loans. The company utilized $63.8 million for operations during the reported quarter compared with a cash utilization of $17.3 million in the prior-year quarter. In the second quarter of 2026, capital expenditure totaled $7.7 million. This included $5.8 million for the routine purchase of testing equipment, software, design tools and other goods and another $1.9 million for building construction and improvements.

OutlookFor third-quarter 2026, management expects non-GAAP revenues in the range of $519-$541 million. Non-GAAP gross margin is expected to be in the range of 50-51%. Non-GAAP operating margin is projected between 27.5% and 28.5%.

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

Upcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting growth of 21.92% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 19.86%. The company delivered an average earnings surprise of 8.31% in the last four reported quarters.

Motorola Solutions, Inc. (MSI - Free Report) is set to release second-quarter 2026 earnings Aug. 5. The Zacks Consensus Estimate for earnings is pegged at $3.86 per share, implying growth of 8.12% from the year-ago reported figure.

Motorola has a long-term earnings growth expectation of 9.47%. The company delivered an average earnings surprise of 5.17% in the last four reported quarters.

HubSpot, Inc. (HUBS - Free Report) is scheduled to release second-quarter 2026 earnings on Aug. 5. The Zacks Consensus Estimate for earnings is pegged at $3.02 per share, suggesting growth of 37.9% from the year-ago reported figure.

HubSpot has a long-term earnings growth expectation of 20.84%. The company delivered an average earnings surprise of 4.97% in the last four reported quarters.

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
--
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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:

Key Takeaways SIMO to report Q2 2026 earnings on July 29 with consensus sales of $403.6 million and EPS of $2.13.SIMO expanded enterprise SSD shipments and saw steady demand from AI infrastructure investments.Silicon Motion gained from broader controller adoption and PCIe Gen5 SSD demand across key markets. Silicon Motion Technology Corporation (SIMO - Free Report) is scheduled to report second-quarter 2026 earnings after the closing bell on July 29. The Zacks Consensus Estimate for sales and earnings is pegged at $403.6 million and $2.13 per share, respectively. Earnings estimates for SIMO for 2026 have increased 7.1% to $8.96 over the past 60 days, and those for 2027 have increased 14.6% to $11.98.

SIMO Estimate Trend
Image Source: Zacks Investment Research

Earnings Surprise HistoryThe leading NAND flash controller designer has a modest trailing four-quarter earnings surprise history, having exceeded expectations on three occasions. It delivered a four-quarter earnings surprise of 18.61%, on average. In the last reported quarter, the company delivered an earnings surprise of 20.61%.

Image Source: Zacks Investment Research

Earnings WhispersOur proven model predicts a likely earnings beat for SIMO for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Silicon Motion currently has an ESP of +7.68% and sports a Zacks Rank #1. You can see the the complete list of today’s Zacks #1 Rank stocks here.

Factors Shaping Upcoming ResultsDuring the quarter, Silicon Motion has strengthened its enterprise storage business through the production ramp of its MonTitan enterprise SSD controller, which supported commercial shipments to customers. The company also benefited from steady demand for enterprise boot drive solutions as cloud service providers continued investing in artificial intelligence (AI) infrastructure and next-generation data centers. Healthy customer demand, an improving product mix and strong business visibility are expected to have supported revenue growth in the second quarter of 2026.

Silicon Motion's embedded storage business continued to gain market share through broader adoption of its eMMC and UFS controllers, driven by new customer wins and expanding product adoption. Healthy demand for PCIe Gen5 SSD controllers is likely to have supported shipments across client and enterprise markets as customers upgraded to higher-performance storage platforms. These trends are likely to have a positive impact on the June-quarter revenues.

During the quarter under review, Silicon Motion benefited from expanding customer programs across cloud, enterprise and industrial markets, supporting broader adoption of its storage controller solutions. Ongoing production ramps and commercial shipments across multiple applications, along with the company's broad customer base and diversified storage portfolio, are expected to have strengthened revenue contributions during the second quarter.

Price PerformanceOver the past year, SIMO has surged 244.6% compared with the industry’’s growth of 195.6%. It has outperformed peers like Marvell Technology, Inc. (MRVL - Free Report) , but underperformed Western Digital Corporation (WDC - Free Report) over this period. While Marvell has gained 157.4%, WDC jumped 646.2%.

Image Source: Zacks Investment Research

Key Valuation MetricFrom a valuation standpoint, Silicon Motion appears to be trading at a premium relative to the industry and above its mean. Going by the price/earnings ratio, the company shares currently trade at 25.36 forward earnings, higher than 12.38 for the industry and the stock’s mean of 19.

Image Source: Zacks Investment Research

Investment ConsiderationsSilicon Motion is well-positioned to benefit from long-term growth in the global storage industry as increasing data generation, AI adoption and digital transformation continue to drive demand for faster and more efficient storage solutions. The company's strong technology expertise and focus on innovation provide a solid foundation for sustainable revenue and earnings growth.

The company’s disciplined execution, long-standing customer relationships and continued investment in advanced controller technologies reinforce its competitive position. These strengths should enable the company to capitalize on evolving storage requirements and support sustainable long-term shareholder value.

End NoteSilicon Motion's long-term growth prospects remain encouraging, supported by favorable trends in the storage semiconductor industry. Its consistent execution, expanding presence in higher-value storage markets and ability to address evolving customer requirements reinforce its growth outlook. As demand for advanced storage solutions continues to rise across multiple end markets, the company is well-positioned to deliver sustainable financial performance. With favorable industry trends, a strong technology portfolio and a Zacks Rank #1, SIMO remains an attractive investment choice for long-term investors.

Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.

With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.

In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.

Should You Consider Silicon Motion?The final step today is to look at a stock that meets our ESP qualifications. Silicon Motion (SIMO - Free Report) earns a #1 (Strong Buy) two days from its next quarterly earnings release on July 29, 2026, and its Most Accurate Estimate comes in at $2.29 a share.

Silicon Motion's Earnings ESP sits at +7.68%, which, as explained above, is calculated by taking the percentage difference between the $2.29 Most Accurate Estimate and the Zacks Consensus Estimate of $2.13. SIMO is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

SIMO is just one of a large group of Computer and Technology stocks with a positive ESP figure. STMicroelectronics (STM - Free Report) is another qualifying stock you may want to consider.

STMicroelectronics, which is readying to report earnings on October 22, 2026, sits at a Zacks Rank #1 (Strong Buy) right now. Its Most Accurate Estimate is currently $0.43 a share, and STM is 87 days out from its next earnings report.

For STMicroelectronics, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.39 is +9.32%.

SIMO and STM's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

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.

4.97K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SIMO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.