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Technology Stocks : Silicon Motion Inc. (SIMO)
SIMO 98.14-1.5%3:59 PM EDT
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From: Elroy7/31/2025 9:29:10 AM
1 Recommendation

Recommended By
Lance Bredvold

  Read Replies (1) of 2962
 
I listened to the SIMO conference call.

There wasn't much in terms of new information, just confirmation that their outlook is great for sales growth. Legacy products (PC and cell phone controllers) are going to grow over the next 18-24 months due to market share gains, and new products (autos, enterprise controllers and NVidia relationship) are going to grow due to SIMO gaining traction combined with market growth (autos) and because products are entering production (enterprise, Mon Titan, NVidia relationship) and SIMO is starting from near zero sales.

They have more requests for programs from potential customers than they can handle. Operating expenses are going to higher to meet demand, but tech stocks don't care much about Op Ex (thank goodness), and they do care about sales growth.

I think SIMO starts to get sort of expensive relative to it's history around $90, but in 2-3 years SIMO may change from a PC / cell phone commdity chip stock to a blended diversified Auto/enterprise/AI/Data center + PC/Cell phone semi stock. SIMO's sales segments in 2028 should have some sexy segments, but 2/3rds of sales will probably still be PC/cell phones. While PCs and cell phones are not exciting, they do make a nice cash cow to fund the development costs of the other stuff.

I would expect meaningful revenue growth in Q3 and Q4 (SIMO has already guided to meaningful growth, maybe they're going to beat their own guidance, they usually do). Lets see how high the stock price can go.....ya sort of have to ignore valuation and just enjoy the lift off at this point.
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