12 Best Small Cap Tech Stocks to Buy

9. Silicon Motion Technology Corp. (NASDAQ:SIMO)

Market Capitalization as of September 11: $1.92 billion

Number of Hedge Fund Holders: 43

Silicon Motion Technology Corp. (NASDAQ:SIMO) is an American-Taiwanese company involved in developing NAND flash controller integrated circuits for solid-state storage devices. It makes chips that help other companies make better flash memory devices, and are used in things like smartphones, tablets, computers, and USB drives, making these devices faster, and more reliable.

The company also provides InstantView docking technology, which allows its users to mirror the screen of any laptop, Chromebook, or Android phone without downloading the driver.

This quarter, the revenue from NAND flash maker grew nearly 15% sequentially, accounting for more than 60% of the total revenue, which was $210.67 million. This revenue for Q2 this year was 50.09% higher than Q2 in 2023. The growth is attributed to strong demand from PC and smartphone device makers as original equipment manufacturers (OEMs).

NAND pricing is increasing and expected to move higher throughout the remainder of the year and early 2025,  driven by demand from data center and enterprise storage applications. Management says the company has unmatched technical and financial resources to build next-generation controllers. Such claims build investor trust. As of June 30, 43 hedge funds are long in the company, with the highest stake valued at $67,975,717 by Pertento Partners, of a total of 839,310 shares.

Silicon Motion Technology Corp.’s (NASDAQ:SIMO) varied range of products and leadership in technology is projected to give a 25-30% increase in revenue each year. With the core business growing at an impressive rate, and the growing integration of electronics and semiconductors throughout networking communication devices, the company appears to be well-positioned to benefit.

Ave Maria Growth Fund stated the following regarding Silicon Motion Technology Corporation (NASDAQ:SIMO) in its first quarter 2024 investor letter:

“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.”