Silicon Motion Inc. (SIMO) Message Board

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Technology Stocks : Silicon Motion Inc. (SIMO)

SIMO 100.45

-2.4%

9:30 AM EDT

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From: Elroy	10/20/2025 4:16:45 PM
	1 Recommendation Recommended By Lance Bredvold of 2954

Next week on Monday or Tuesday SIMO will announce the new dividend amount for the next four quarters. The current dividend is 50 cents per Q. Items which may make them reduce it. -nada Items which may make them keep it at 50 cents -operating expenses are well elevated relative to revenues, and are likely to increase because SIMO seems to have lots of sales opportunities in front of it, so they're spending for the future. Cash is king. -in the previous four quarters (Q4 2024 through Q3 2025) SIMO's non-GAAP EPS will probably be about $3.30. It may be hard to upgrade a $2.00 per year dividend based on trailing results. Items which may make them increase the dividend -Sales are about to explode higher, to record levels. The 2026 outlook is (I think) the best SIMO's outlook has ever been -Spending on the new office is complete -They may expect a lump of cash from MXL ($250m+) in the next few months if the Singapore arbitration completes. Not sure what they'll do. My hunch is keep the dividend at 50 cents per year (since the trailing year doesn't justify an increase), but a bump would be reasonable as well. Who knows? SIMO is scheduled to report Oct 30th after the close. I think consensus sales is about $225m. I'll bet they do at least $245m. SIMO always lowballs it's own guidance, and memory sales exploded higher in September. Although that was mainly DRAM and HBM, the pure play NAND maker (SNDK) is up 200% since August, so NAND memory also has caught some demand. NAND consumers all probably double ordered as the prices increased, and every NAND chip needs a controller so SIMO's sales likely are well above their forecast. The stock is also at sky high levels, so the valuation seems stretched. Fortunately in tech valuations generally don't factor in nearly as much as they might in other sectors. I think SIMO gets to $100 before they announce the report, and then what happens after that depends on the report. When AI or memory tech is going up, SIMO is going up. So I think from here the SIMO-specific news is a lot less important than the trends in those two sectors. Can SIMO hit $100 by November? Maybe. Wouldn't be a shocker if the sector vibe is nice and the SIMO report is strong.

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