JoeB07
Oct 22, 7:36 PM
$SIMO just want to throw some numbers out there. If you wake up one day soon and the MMs decide they want to fill the 1Q gap at about
$150 this will represent roughly a 5B market cap. Q3 earnings are likely to show a 500m non-GAAP net income runway. So for 3Q roughly 600m in revs, 160 in operating income, and about 125m net income after taxes. So forward PE will be something like less than 10 if the guide is strong—which we expect. A 10x forward PE will be slightly higher than pure memory makers like
$MU and
$SNDK , half as much as storage makers like
$STX and
$WDC , and about 35%+ less than its historical forward PE.
Note the actual GAAP net income number reported next week for Q3 is going to show a massive paper loss on their strategic investments that gave up their entire 74m gain from 2Q in the 3Q. That is unless they sold these investments during quarter 3 which is entirely possible.
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