TheFro123
Oct 24, 8:37 PM
$SIMO I am all in on SIMO at these levels. Just too cheap. Market will wake up when it reports this week. Last quarter revenue grew 127%, adjusted operating margin expanded to 23.1% from 12.8%, and adjusted earnings per ADS rose to
$2.43 from
$0.69. Management guided third-quarter revenue growth of 114%–124% and adjusted operating margin of 27.5%–28.5%. Those figures indicate improving profitability alongside growth.
Its strategy also creates an opportunity for investors to reassess the business: Silicon Motion is expanding beyond consumer storage controllers into enterprise SSD controllers, AI infrastructure, automotive storage and enterprise boot drives. My thesis is that successful execution could produce both higher earnings estimates and a higher valuation multiple.
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