Got it, thanks for the explanation.
So it just means that SIMO is in a Korean NAND maker's MicroSD Express card.
Ok, interesting I suppose.
Sort of hard to tell how SIMO's eMMC/UFS business is going these days. They say it's going well, and they're gaining share. However I think historically most of SIMO's UFS business was OEMed through Micron to cell phone makers, and since Micron went internal with their own controller with UFS 4.0, SIMO is perhaps broadening their distribution channels for UFS controllers, but what it looks like today I don't really know.
SIMO story seems pretty great today, with significant sales growth forecast for Q3 and Q4 this year. The sales growth is primarily due I think mainly to mass volume production of 6nm Gen5 PCIe SSD controllers for PCs). However, enterprise controllers are supposed to enter mass production in the second half of this year, and moreso next year. And autos is also supposed to grow reasonably well. The main question mark for their product segments (for me, at least) is the UFS business. I wonder how they will manage the loss of Micron for UFS 4.0, but they seem to think they are gaining market share in UFS despite the loss of Micron as an OEM for UFS 4.0.
And then in 2026 all those growth drivers should (I think) strengthen.
When / if SIMO does about $250m in Q4 2025, if they expect further sales growth in 2026, it's not hard to see the share price around $80-$90, with pops up above $100 on positive semiconductor sentiment (if it occurs). It seems like 2026 should have sales above $1 billion, which would be a record for SIMO. And the new segments (autos, enterprise) get higher PE multiples than SIMO's normal consumer products lines of business.
I don't see the negative in the SIMO story at the moment. I suppose the negative is the future sales growth doesn't appear (oops!), but that's true of any tech stock. |
