Silicon Motion Technology (NASDAQ:SIMO) shares jumped more than 14% in early trading Wednesday after the NAND flash controller leader delivered a "triple-play" of financial strength: record quarterly revenue, a bullish 2026 outlook, and the formal start of a high-profile enterprise partnership with NVIDIA.
The Taipei-based company reported fourth-quarter net sales of $278.5 million, a 46% surge year-over-year that easily cleared the $261 million analyst consensus.
The outperformance was fueled by a 130% explosion in SSD solutions and a 30% jump in client SSD controllers, driven by the rapid adoption of its high-end PCIe Gen5 architecture in AI-capable PCs.
While the core consumer business remains robust, the primary catalyst for the stock’s rally was the company's enterprise breakthrough.
CEO Wallace Kou confirmed that the fourth quarter marked the first commercial shipments of Silicon Motion's new enterprise boot drive storage to a "leading GPU maker," widely identified in industry circles as NVIDIA.
The controllers are being integrated into NVIDIA’s BlueField-3 DPU (Data Processing Unit) platforms, a critical component in the global build-out of AI data centers.
The company also signaled extreme confidence in its 2026 trajectory, projecting first-quarter revenue between $292 million and $306 million—representing roughly 80% growth over the same period last year.