Shares of Silicon Motion Technology (NASDAQ: SIMO) skyrocketed 9.94% in pre-market trading on Wednesday following the company's release of impressive first-quarter 2025 financial results that significantly surpassed analyst expectations.

The semiconductor company reported adjusted earnings per ADS of $0.60, handily beating the consensus estimate of $0.45. Revenue for the quarter came in at $166.49 million, also topping the Street's forecast of $162.69 million, despite a 12.1% year-over-year decline. The strong performance demonstrates Silicon Motion's resilience and effective management strategies in the face of challenging market conditions.

Silicon Motion's gross margin improved to 47.1% in Q1 2025, up from 45.8% in the previous quarter, indicating enhanced operational efficiency. The company also announced a new $50 million share repurchase program, signaling confidence in its financial position and commitment to delivering shareholder value. While the near-term environment remains challenging due to macro factors, including potential impacts from tariffs and trade tensions, Silicon Motion's management expressed optimism about a strong rebound in consumer markets in the second half of 2025, supported by new product introductions.