Silicon Motion Technology (SIMO) surged 5.68% during intraday trading on Tuesday, marking a significant rebound for the storage chip maker.

The price recovery comes as the storage chip sector shows signs of stabilization, with peer Micron Technology gaining 4.66% and lifting overall sector sentiment. The rebound appears to be a technical recovery following multiple consecutive sessions of profit-taking pressure after the stock had previously surged over 50% in a single week.

Analysts have been providing coverage on Silicon Motion and other technology companies, with the company's strong fundamentals remaining intact. Silicon Motion delivered Q1 results that beat expectations across the board, with profits doubling and forward guidance raised, fueled by surging AI storage demand. The company has noted that under the AI wave, global storage chips face severe supply-demand imbalance, supporting the stock's fundamental outlook.