11:58 AM EDT, 07/30/2026 (MT Newswires) -- Silicon Motion Technology ( SIMO ) reported Q2 revenue and margins well above expectations and issued a sharply higher Q3 outlook, driven by broad-based growth in embedded, automotive and artificial intelligence-related products, Wedbush said in a report Thursday.

Q2 revenue rose 127% from a year earlier to $451 million, topping the $403 million consensus estimate. Non-GAAP gross margin increased to 50.2%, while operating margin reached 23.1%, according to the report.

Ferri and boot-drive sales more than doubled sequentially and accounted for nearly 30% of revenue as demand grew across automotive and artificial intelligence infrastructure applications, the firm said. Wedbush also said sales of Silicon Motion's ( SIMO ) "MonTitan" enterprise SSD controllers likely exceeded its expectations.

Silicon Motion ( SIMO ) guided Q3 revenue to between $519 million and $541 million, with the midpoint about 23% above prior consensus expectations, the report said.

Wedbush reiterated an outperform rating on Silicon Motion Technology ( SIMO ) with a price target of $400.

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