Silicon Motion shares fell approximately 8% after the NAND flash controller maker announced plans to raise $800 million through zero-coupon convertible senior notes, with an option for an additional $120 million bringing the total to $920 million. The notes, due August 15, 2031, carry no interest but can be converted into equity, raising concerns about shareholder dilution. Despite this negative market reaction, the company, the world’s leading supplier of SSD controllers listed on Nasdaq, recently posted record Q1 2026 revenue of $342.1 million. Net proceeds will fund general corporate purposes and repay amounts under its existing credit agreement.
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