Silicon Motion Technology (SIMO) Company Report

Silicon Motion is approaching a $1 billion revenue run rate, driven by its core Client SSD (50%-60% of revenue) and Mobile Controller (30%-40% of revenue) businesses, alongside rapidly growing Ferri Automotive (projected 10% of revenue by 2026) and Enterprise MonTitan (projected 5%-10% of revenue by 2026-2027) segments.
The company anticipates significant growth from its Enterprise MonTitan PCIe Gen 5 controllers, which are ramping from 2026, and the emerging boot drive business with NVIDIA, offering ASPs scaling up to north of $100 for high-density drives. Gen 6 silicon for enterprise is expected in H2 2026.
Management forecasts the global NAND supply shortage to continue for at least two years (2026-2027), but Silicon Motion expects minimal impact due to its strong OEM and NAND maker relationships, with over 50% of its business tied to NAND maker projects.
Silicon Motion aims for long-term operating margins of 25%+ while maintaining gross margins at 48%-50%. The company's capital allocation prioritizes dividends (currently $2 per share), share buybacks, and strategic acquisitions.

1 day ago

Transcript

Silicon Motion Highlights Growth Drivers and Market Share Gains at UBS Conference

SIMO

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Silicon Motion is approaching a $1 billion revenue run rate, with Client SSDs contributing 50%-60% of total revenue, mobile controllers 30%-40%, Ferri Automotive projected to reach 10% of revenue by 2026, and Enterprise MonTitan 5%-10% of total revenue by 2026-2027.
The company's Enterprise MonTitan product line, featuring PCIe Gen5 controllers, has secured two tier-one customer design wins expected to ramp from 2026, with a total of six customers. Additionally, boot drive solutions for NVIDIA's BlueField-3 and BlueField-4 are ramping up, with ASPs potentially scaling to over $100 for higher densities, contributing significant revenue upside.
CEO Wallace Kou expects the NAND supply shortage to persist for at least two years (2026-2027) due to high demand, but Silicon Motion's business is largely insulated as over 50% is related to NAND maker projects and 70% to OEMs.
Silicon Motion anticipates its Client SSD market share for PCIe Gen 5 to reach 50% or higher, an increase from its current 30% for Gen 4, driven by multiple design wins.
CFO Jason Tsai noted that gross margins are within the historical 48%-50% range, and operating margins are currently 19%-20%, with a long-term target of 25%+. The company's capital allocation strategy includes dividends, share buybacks, and strategic acquisitions.

1 day ago

Transcript

Silicon Motion Nears $1 Billion Revenue Run Rate, Highlights Growth Drivers and Financial Targets

SIMO

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Silicon Motion (SIMO) is approaching a $1 billion revenue run rate, driven by its four major product lines: client SSDs (50-60% of revenue), mobile controllers (30-40%), Ferriero Automotive (expected to reach 10% of revenue by 2026), and enterprise MonTitan.
The enterprise MonTitan product line, including boot drives for AI, is projected to contribute 5-10% of revenue by 2026-2027, with strong design wins and high average selling prices (ASPs) for solutions ranging from $20 to over $100 per unit.
SIMO anticipates its client SSD market share to grow to 40% or higher with the ramp-up of PCIe Gen 5 controllers, which have secured design wins with over 90% of module makers and multiple NAND makers.
Despite an expected NAND supply shortage through 2026 and 2027, Silicon Motion foresees a "rather small" impact on its business due to strong OEM projects and new design wins, while maintaining gross margin targets of 48-50% and long-term operating margin targets of 25%+.

1 day ago

Transcript

Silicon Motion Announces Strong Q3 2025 Results and Positive Q4 Guidance

SIMO

Earnings

Guidance Update

Product Launch

Silicon Motion reported Q3 2025 Non-GAAP revenue of $242.0 million, marking a 22% sequential increase, and diluted EPS of $1.00, up from $0.69 in the prior quarter.
The company projects Q4 2025 Non-GAAP revenue between $254 million and $266 million, an expected 5% to 10% sequential increase, with anticipated gross margins of 48.5% to 49.5% and operating margins of 19.0% to 20.0%.
SSD controller sales and eMMC+UFS controller sales both increased 20% to 25% quarter-over-quarter in Q3 2025.
The new high-performance PCIe 5.0 SSD controller, SM2508, contributed 15% of client SSD revenue in Q3 2025 after beginning early shipments in Q3 2024.

Oct 31, 2025, 12:00 PM

Presentation

Silicon Motion Technology Corporation Reports Strong Q3 2025 Results and Positive Q4 Outlook

SIMO

Earnings

Guidance Update

Revenue Acceleration/Inflection

Silicon Motion Technology Corporation reported strong Q3 2025 results, with sales increasing 22% to $242 million, exceeding guidance, and non-GAAP earnings per ADS of $1.
The company provided a positive Q4 2025 outlook, projecting revenue to increase 5%-10% to $254 million-$266 million, with gross margins expected between 48.5%-49.5% and operating margins between 19%-20%.
Growth was driven by eMMC and UFS revenue, which was up over 20% sequentially, and client SSD revenue, also up more than 20% sequentially, with PCIe Gen5 controller revenue growing 45% sequentially.
Management is confident in exceeding a $1 billion annual revenue run rate this quarter, fueled by strong demand in legacy businesses and new automotive and enterprise products.
The MonTitan enterprise storage products are anticipated to contribute 5%-10% of total revenue by late 2026 or 2027, benefiting from AI inference demand and HDD shortages.

Oct 31, 2025, 12:00 PM

Transcript

Silicon Motion Technology Corporation Reports Strong Q3 2025 Results and Positive Q4 Outlook

SIMO

Earnings

Guidance Update

New Projects/Investments

Silicon Motion Technology Corporation reported strong Q3 2025 revenue of $242 million, a 22% sequential increase, exceeding guidance, with gross margins at 48.7% and operating margins at 15.8%.
The company provided Q4 2025 revenue guidance of $254 million to $266 million, representing a 5% to 10% sequential increase, with expected gross margins between 48.5% and 49.5% and operating margins between 19% and 20%.
Growth is driven by PCIe Gen5 controllers (client SSD revenue up >20% sequentially), eMMC/UFS business (up >20% sequentially), and expanding automotive and enterprise (MonTitan, boot drives) segments. Management is confident in exceeding an annual revenue run rate of over $1 billion in Q4 2025, with automotive projected to represent at least 10% of revenue and MonTitan 5% to 10% of revenue by late 2026 or 2027.

Oct 31, 2025, 12:00 PM

Transcript

Silicon Motion Technology Corporation Reports Strong Q3 2025 Results and Provides Q4 2025 Guidance

SIMO

Earnings

Guidance Update

Revenue Acceleration/Inflection

Silicon Motion Technology Corporation reported Q3 2025 non-GAAP revenue of $242 million, a 22% sequential increase, exceeding guidance, with non-GAAP gross margin at 48.7% and non-GAAP EPS of $1.00.
The company provided Q4 2025 non-GAAP revenue guidance of $254 million to $266 million, representing a 5% to 10% sequential increase, with non-GAAP gross margin expected between 48.5% and 49.5% and non-GAAP operating margin between 19% and 20%.
Key growth drivers include strong sequential increases in eMMC and UFS revenue (over 20%) and client SSD revenue (over 20%), with PCIe Gen5 controller revenue growing 45% sequentially in Q3 2025.
Silicon Motion expects its MonTitan enterprise products to contribute 5% to 10% of revenue by late 2026 or 2027 and the automotive business to represent at least 10% of revenue by 2026-2027. The company anticipates exceeding an annual revenue run rate of over $1 billion in Q4 2025.
AI-driven demand is causing NAND, DRAM, and HDD supply shortages and price increases expected to continue through 2026. An arbitration hearing was held, with oral closing arguments scheduled for March 2026.

Oct 31, 2025, 12:00 PM

Transcript

Silicon Motion Technology Corporation Announces Q3 2025 Results and Q4 2025 Outlook

SIMO

Earnings

Guidance Update

Dividends

Silicon Motion Technology Corporation reported GAAP net sales of $242.0 million for the third quarter of 2025, marking a 22% increase quarter-over-quarter and a 14% increase year-over-year.
GAAP earnings per diluted ADS for Q3 2025 were $1.16, while non-GAAP earnings per diluted ADS were $1.00.
The company saw strong growth in its eMMC and UFS products, driven by a rebounding smartphone market, and its PCIe5 client SSD controller sales grew 45% quarter-over-quarter.
For the fourth quarter of 2025, management expects revenue to be between $254 million and $266 million, representing a 5% to 10% sequential increase and a 33% to 39% year-over-year increase.
The Board of Directors declared a $2.00 per ADS annual cash dividend, to be paid in quarterly installments of $0.50 per ADS, with the first installment payable on November 26, 2025.

Oct 31, 2025, 10:01 AM

6-K

Silicon Motion Announces Annual Cash Dividend

SIMO

Dividends

Silicon Motion Technology Corporation (SIMO) announced an annual cash dividend of $2.00 per ADS.
This dividend will be paid in four quarterly installments of $0.50 per ADS.
The anticipated record and payment dates for these installments are from November 2025 to August 2026.
CEO Wallace Kou stated that the business has rebounded, margins have normalized, and distributing a meaningful portion of strong cash flow to shareholders remains a priority.

Oct 27, 2025, 8:12 PM

6-K

Earnings Transcripts

Quarterly earnings call transcripts for Silicon Motion Technology.

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