Silicon Motion Technology wins huge price target raise from this analyst

Roth Capital analyst Suji Desilva raised his target on Silicon Motion Technology (Silicon Motion Technology Stock Quote, Chart, News, Analysts, Financials NASDAQ:SIMO) to $250.00 from $140.00, maintaining a “Buy” rating after what he called a very strong first quarter and a sharply higher second-quarter outlook.

Desilva said Silicon Motion, which develops NAND flash controllers for SSDs used in PCs, data centres, smartphones and automotive systems, is positioned for a solid 2026 revenue ramp tied to AI infrastructure demand.

Silicon Motion reported first-quarter revenue of $342.1-million, up 23% sequentially and ahead of consensus near $300-million. EPS of $1.58 was $0.30 ahead of the Street, helped by stronger revenue and better gross margin.

Desilva said growth was led by eMMC/UFS controllers and a roughly 200% sequential increase in Ferri SSD and boot-drive revenue as new AI infrastructure programs began to ramp.

For the second quarter, Silicon Motion guided revenue of $393-million to $411-million, up 15% to 20% sequentially and well ahead of consensus at $307.3-million. The company also guided gross margin to rebound to 48.5% to 49.5% as higher-margin products become a larger part of the mix.

Desilva said the outlook appears sustainable, supported by AI infrastructure boot drives and the second-half ramp of the company’s MonTitan enterprise SSD platform. He also said Silicon Motion should benefit from its NAND controller position in a tighter memory market, with share gains possible in notebooks and smartphones as programs migrate from captive NAND suppliers.

He expects accelerating growth in the second half of 2026 as AI boot-drive programs expand and MonTitan ramps across two current customers, with five additional customer ramps expected later in the year.

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