Overview

• Silicon Motion Q2 2025 revenue rises 19% Q/Q, beats analyst expectations, per LSEG data

• GAAP net income declines Q/Q despite revenue growth

Outlook

• Silicon Motion targets $1 bln revenue run rate by end of 2025

• Company expects Q3 2025 revenue between $219 mln and $228 mln

• Silicon Motion sees Q3 2025 gross margin at 48% to 49%

• Company anticipates stronger second half of 2025

Result Drivers

• PCIE5 CLIENT SSD CONTROLLERS - Sales grew over 75% Q/Q due to AI-at-the-edge PCs and white box AI server makers, per CEO Wallace Kou

• EMMC AND UFS CONTROLLERS - Strong growth driven by better-than-anticipated smartphone sales and market share gains

• SSD SOLUTIONS - Sales decreased 45% to 50% Y/Y, indicating challenges in the segment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Silicon Motion Technology Corp is $90.00, about 14% above its July 29 closing price of $77.43

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX6Dp7dC

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)