Silicon Motion Q2: Boot Drives Lead to Strong Report; MonTitan Still to Ramp

Silicon Motion is transitioning from being a consumer-focused NAND controller supplier to a more broader AI storage company, resulting in its third quarter of 100% YoY revenue. In our Top 20 report, Silicon Motion was listed third behind heavyweights Micron and SanDisk, yet it carries a higher allocation than both in our portfolio. Oddly enough (and quite exciting too) the bigger AI-related catalyst for SIMO will not meaningfully ramp until 2027. Instead, SIMO is gaining share in traditional mobile and client SSD markets, along with strong growth in boot drives including Ferri automotive storage.