Granahan’s Q2 2026 letter said Silicon Motion benefited from improving semiconductor fundamentals, normalized customer inventories and stronger storage-demand expectations. The firm maintained its position in the NAND flash controller maker.
The strategy returned 46.7% in Q2, versus 25.7% for the Russell 2000 Growth Index; its first-half return was 39.4%, against 22.2% for the index. Granahan attributed its outperformance mainly to stock selection, improving operating results, company-specific catalysts and the re-rating of undervalued businesses.
Silicon Motion closed at $276.23 on September 25, 2026, with a $9.36 billion market capitalization and a reported year-to-date gain of about 198%. Hedge fund portfolios holding the stock increased to 53 at the end of Q2, from 40 in the previous quarter.
