Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Silicon Motion Inc. (SIMO) -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (2834)	4/16/2025 8:04:33 PM
From: OlafB	Read Replies (1) \| Respond to of 2967

Our business is evaluating businesses and setting target prices for businesses. Politics won't bring more money into our pockets(in most cases) Consider SIMO's pre-reciprocal tariff price target of $75–80 per share. While gross margins are being reduced for their main buyers (Consumer Gadgets and soon Industrial—where we still have high hopes), we shouldn't expect a dramatic change in the investment thesis. SIMO will suffer an indirect effect, because: Only the sales market of SIMO is affected—not its product quality or strategy. SIMO's controllers are commodity-like, but highly demanded—both in the sense that they're essential for memory chips to function, and that they must remain technologically advanced to support next-gen chips(at which SIMO has a first hand, as we discussed couple weeks ago). What we should do next: Check what portion of client's revenue comes from U.S. Estimate their margin reductions and watch for guidance in the upcoming earnings season. If their production declines ? chip demand drops ? SIMO's revenue will likely decline as well. What can give us some cope: MonTitan -> diversification into not-regular electronics Further softening of tariffs and maybe acquisition by someone else while their share prices are close to its 5y bottom