
SIMO Stock Forecast & Price Target
SIMO Analyst Ratings
Bulls say
Silicon Motion Technology Corp has demonstrated robust performance in its SSD controller segment, with the 8-channel SSD controller achieving over 35% sequential growth and now contributing more than 10% of overall SSD revenue, driven by market share gains and increased average selling prices (ASPs). The company's SSD controllers revenue is estimated at $90 million for the recent quarter, marking a 1.8% quarter-over-quarter increase, indicating a steady demand in the sector. The favorable market dynamics, particularly the 'China memory de-coupling dynamic' and the anticipated adoption of UFS 4.1 in mainstream applications by CY26, suggest a positive trajectory for continued revenue growth and market presence.
Bears say
Silicon Motion Technology Corp anticipates a sequential decline in operating expenses for the fourth quarter; however, an increase in operational expenses alongside a decrease in gross margins is projected to negatively impact earnings per share despite a revenue increase. The company's guidance for third quarter revenues is set at $223.5 million, marking a 12.5% quarter-over-quarter increase and a 5.2% year-over-year increase, which, while higher than previous estimates, is accompanied by lower gross margin expectations. The anticipated non-GAAP gross margin of 48.5% falls short of both internal and market estimates, indicating potential profitability challenges amidst revenue growth.
This aggregate rating is based on analysts' research of Silicon Motion Technology and is not a guaranteed prediction by Public.com or investment advice.
SIMO Analyst Forecast & Price Prediction
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