Silicon Motion Technology (NASDAQ:SIMO) had its price target raised to $400 from $230 by Wedbush, which reiterated an ‘Outperform’ rating, citing stronger forward estimates and a higher valuation multiple reflecting improving growth visibility.
Shares of Silicon Motion added almost 5% at $337 on the news.
Wedbush said it is raising its outlook as it updates its model to better reflect “improving opportunities and shifts in fundamentals,” noting that both earnings estimates and the multiple have been increased to align with SIMO’s expected growth profile.
The firm pointed to a more constructive view on client SSD demand, driven by a combination of higher assumed market share and improving average selling prices tied to new product cycles.
It also highlighted next-generation Gen 5 PCIe controllers as a key pricing driver, noting they are being sold at a premium versus prior-generation products.
Wedbush added that SIMO’s share gains are expected to become more visible in the second half of the year as newer 4-channel mainstream controllers ramp across NAND manufacturers. The company’s share is currently around 30%, according to the note.
On enterprise storage, Wedbush highlighted growing traction for the MonTitan platform, which is beginning to ship in limited volumes and is expected by the company to reach mid-single-digit to low-double-digit percentages of revenue by the end of 2026.
The firm also sees potential upside into 2027 driven by strengthening demand from enterprise customers and emerging neocloud and AI infrastructure requirements.
In embedded, Wedbush pointed to continued opportunities across automotive and data center-related products, including expanding content in networking and boot drive applications, with additional wins referenced at large infrastructure and search-related customers.
The firm raised its estimates for 2026 and 2027 to $1.64 billion and $2.09 billion in revenue respectively, alongside higher EPS forecasts, reflecting stronger assumed growth across SSD, embedded, and enterprise segments.
Despite the more optimistic outlook, Wedbush noted its revised model may still understate potential upside, particularly if NAND pricing remains supportive, enterprise adoption accelerates, and share gains continue in key regions such as China.