NEW YORK, June 27, 2026, 18:06 EDT
- Silicon Motion finished at $305.28 on Friday, falling 6.14%. The stock hit an intraday high of $355.00 on Monday.
- The ADR finished the week down about 9.4% from Monday’s close. That’s after some new analyst support.
- The average 12-month target sits just 1.8% over the current share price. The highest estimate calls for a 47% jump.
- The U.S. has a short trading week coming up. Nasdaq will close July 3 for the Independence Day holiday.
Silicon Motion Technology Corporation NASDAQ:SIMO heads into the weekend with investors asking if earnings upgrades will be enough for a stock that’s now trading close to the Street’s average price target, despite gains seen earlier this month.
Shares of the Taiwan-connected chip designer slid 6.14% to end Friday at $305.28, losing $19.98. Earlier in the week, the U.S.-listed ADR touched $355.00 in Monday trading and closed that day at $336.90. That means the stock finished Friday down about 9.4% from Monday’s close. Volume came in at 1.11 million shares, higher than several earlier sessions this week.
Silicon Motion got a bullish push to start the week. Wedbush upped its target to $400 from $230 and kept its Outperform call, pointing to better forward estimates and a higher multiple. The firm said it updated its model for “improving opportunities and shifts in fundamentals.” Proactiveinvestors NA
The target boosted the stock early this week, but the numbers have gotten tighter. Based on Google Finance, there are nine buy ratings, zero holds or sells, with an average 12-month target at $310.71. That’s just 1.78% over where shares are now. The high target sits at $450, up 47.4% from Monday’s close. The lowest is $240.
That’s a problem for Silicon Motion. The shares aren’t a basic recovery play now. The stock needs stronger estimate upgrades or some evidence its enterprise and AI storage lineup can support higher margins later this year. If not, the average price target leaves the name little cushion.
Chip stocks dropped hard Friday. The PHLX chip index sank 5.3%, ending the week down 7.9%—its steepest drop since early April. The Nasdaq finished the week off 4.7%. “Questions around profitability and the capex story are certainly not going away,” David Stubbs, chief investment strategist at AlphaCore Wealth Advisory, told Reuters. Reuters
Silicon Motion posted solid first-quarter numbers. Sales for the quarter jumped 105% year over year to $342.1 million. SSD controller sales climbed 40% to 45%, eMMC and UFS controller revenue was up 140% to 145%, Ferri and boot-drive solutions shot up 755% to 760%. CEO Wallace Kou said the performance “exceeded our revenue, gross margin and operating margin expectations.” GlobeNewswire
Guidance is what’s next. Silicon Motion put out a second-quarter revenue target of $393 million to $411 million, a 15% to 20% rise over Q1. That’s up 98% to 107% from the same period last year. The company also guided gross margin to a range of 48.5% to 49.5%, with operating margin at 21% to 22%.
The midpoint of the revenue guide is $402 million. The market has mostly priced in this ramp, leaving little room. Shares ended Friday $5.43 under the average target.
Nasdaq said U.S. equity and options markets will shut July 3 for Independence Day observance, making this a short week. Silicon Motion has four normal sessions to see if buyers hold the $300 level after Friday’s slide.
