Silicon Motion Earnings In Review

Revising my assumptions

$SIMO printed a blowout, and the numbers I built the deep-dive around now look timid

I published my $SIMO deep-dive with a base case that had the company hitting a 28% operating margin in 2028. I was higher than anyone on the Street. Silicon Motion just told the market it will exit 2026 above 30%. That’s the whole story of this quarter in one line. The thesis is intact, the ramp is faster than I modeled, and I’m raising my numbers.

The quarter

Revenue of $451 million, up 32% sequentially and 127% year over year, blowing through the top end of the $393-411M guide by a full 10%. Third straight record quarter. Gross margin of 50.2%, above the 48.5-49.5% guide and through the psychological 50% line Kou promised earlier this year. Operating margin of 23.1%, past the 21-22% guide. EPS of $2.43, versus the ~$2.11 consensus.

The mix shift underneath the beat is what matters most.