10 Best Affordable Tech Stocks to Buy According to Analysts

3) Silicon Motion Technology Corporation (NASDAQ:SIMO)

Forward P/E as of 23 August: 18.21x

Upside Potential: 40.47%

Expected EPS Growth This Year: 53.3%

Silicon Motion Technology Corporation (NASDAQ:SIMO) is active in the semiconductor industry and focuses on designing, developing, and marketing of controllers for managing NAND flash used in embedded storage applications, such as eMMC embedded memory. The company provides InstantView™ docking technology, which allows its users to mirror the screen of any laptop, Chromebook, or Android phone without downloading the driver.

As a result of the growing integration of electronics and semiconductors throughout networking communication devices, the company appears to be well-positioned to benefit. Moving forward, the company’s diverse portfolio and technological leadership should help drive revenue growth. In addition, it plans to launch multiple new products, which include enterprise-class MonTitan family, and new PCIe 5.0 and UFS 4.0 controllers.

Silicon Motion Technology Corporation (NASDAQ:SIMO) should not only benefit from stable PC demand and smartphone market growth but also higher NAND pricing because of demand from data centers and enterprise storage applications. Its investment in R&D for next-generation controllers might increase ASPs and market share.

Susquehanna increased its target price on shares of Silicon Motion Technology Corporation (NASDAQ:SIMO) from $100.00 to $110.00. The brokerage gave a “Positive” rating on 6^th May. As per Insider Monkey’s 2Q 2024 database, 43 hedge funds were long Silicon Motion Technology Corporation (NASDAQ:SIMO).

Investment management company, Ave Maria, recently released its first quarter 2024 investor letter and mentioned Silicon Motion Technology Corporation (NASDAQ:SIMO). Here is what the fund said:

“Silicon Motion Technology Corporation (NASDAQ:SIMO) is a fabless semiconductor company that specializes in low-end flash memory controllers. Memory manufacturers often design their own controllers in-house, but the rising cost of developing a chip is making it increasingly beneficial to outsource the more commoditized low-end controller development to a third party like Silicon Motion. This outsourcing trend is set to move from consumer applications into the server end market, and Silicon Motion’s new enterprise controller is well positioned to capitalize on the growth.”