On September 22, Silicon Motion Technology rose 5.13% in regular trading, trading at $283.5/share, with turnover of approximately $110 million. The rally was driven by a continued tightening in global memory chip supply-demand dynamics.

On the news front, DRAM and NAND average selling prices surged 20-30% quarter-over-quarter in Q3, while hyperscale cloud customers have reportedly signed contracts accepting further price increases for Q1 next year. A major Wall Street bank raised its DRAM ASP forecasts for the next two years by 8-12% and NAND by 2-3%, lifting its long-term global memory TAM projection to $2 trillion by 2030 with a 21% CAGR through the period. Separately, a senior Micron executive stated that memory shortages span multiple market segments, and meaningful new supply will not begin ramping until 2028, with no clear timeline for supply-demand rebalancing.

As a leading NAND flash controller designer, Silicon Motion Technology stands to benefit from the sustained supply tightness, which supports both shipment volumes and pricing power for its controller chips.

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