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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $198.70 mln | $180.30 mln (8 Analysts) |
Q2 Adjusted Gross Margin | 47.7% | ||
Q2 Adjusted Operating Expenses | $69.30 mln | ||
Q2 Adjusted Operating Margin | 12.8% |
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.)