Silicon Motion Technology produces NAND flash controllers that enable NAND flash memory. It’s a critical component for various memory chips<\/a>, which explains why the company counts Micron, Sandisk, and other chipmakers as its top customers. <\/p>\n Each of Silicon Motion Technology’s customers has reported exceptional results, with multi-year deals highlighted. Micron CEO Sanjay Mehrotra told investors that the company’s strategic customer agreements will “significantly enhance the durability and predictability of [the company’s] strong financial performance.” <\/p>\n Sandisk also reached multi-year deals that offer meaningful revenue visibility through its fiscal 2030. The company also reported 51% sequential growth in its fiscal 2026 fourth quarter while guiding for 20.4% sequential growth at its midpoint. <\/p>\n These companies’ success directly translates into more demand for NAND flash controllers. That demand has contributed to Silicon Motion Technology shares soaring by more than 180% year-to-date. <\/p>\n Fundamentals are enjoying major tailwinds <\/p>\n Silicon Motion Technology’s stock gains align with its fundamentals<\/a>. The company reported 127% year-over-year revenue growth in its second quarter. That included a 32% sequential jump in revenue, which comfortably beat guidance.\u00a0 <\/p>\n Investors were expecting up to $411 million in Q2 revenue based on guidance. However, Silicon Motion Technology actually delivered $451 million. Even better, the CEO said that the company has built a “resilient platform for sustainable, high-quality revenue and profitability growth for years to come.” <\/p>\n That commentary implies that Silicon Motion Technology’s recent successes aren’t a one-off event. Guidance for the third quarter implies up to $541 million in revenue, representing a 20% sequential jump. <\/p>\n Micron and Sandisk both crushed recent guidance, and since they are some of Silicon Motion Technology’s largest customers, it increases the likelihood of the latter crushing its Q3 forecast. Silicon Motion Technology will likely report earnings in late October, giving investors time to accumulate before the big day. <\/p>\n To top it all off, the growth stock trades at a price-to-earnings ratio of just 28. The valuation will get more attractive in subsequent quarters as its revenue and net income continue to surge. <\/p>\n Should you buy stock in Silicon Motion Technology right now? <\/p>\n Before you buy stock in Silicon Motion Technology, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Silicon Motion Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $421,997!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!* <\/p>\n Now, it’s worth noting\u00a0Stock Advisor’s total average return is 978% \u2014 a market-crushing outperformance compared to 213% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of September 7, 2026. <\/p>\n Marc Guberti<\/a> has positions in Silicon Motion Technology. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. NAND flash controllers are the backbone of memory <\/p>\n