Roth sees investors looking past Silicon Motion’s Q4 results

Roth MKM says Silicon Motion (SIMO) announced preliminary Q4 results with revenue at the low end of prior revenue guidance and the mid-point of prior gross margin guidance, reflecting soft consumer demand in the consumer memory end market despite recovering pricing. The firm expects investors to look past near-term “muted” consumer demand toward the company’s incremental cloud and enterprise opportunities, which start ramping in the second half of 2025. Roth maintains a Buy rating on the shares with a $70 price target