For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Silicon Motion (SIMO) ten years ago? It may not have been easy to hold on to SIMO for all that time, but if you did, how much would your investment be worth today?
Silicon Motion's Business In-Depth
With that in mind, let's take a look at Silicon Motion's main business drivers.
Founded in 1995, Silicon Motion Technology Corporation is a leading developer of microcontroller ICs for NAND flash storage devices. The semiconductor company also designs, develops and markets high-performance, low-power semiconductor solutions for original equipment manufacturers (“OEM”) and other customers.
On May 31, 2019, Silicon Motion announced that it has concluded the sale of mobile communications business (FCI product line) to Dialog Semiconductor Plc. for $45 million.
Post the divestiture, the company’s product portfolio is primarily aimed at SSD (Solid State Drive) controllers in the mobile storage market.
Mobile storage: The main offerings of the market are Embedded memory controllers, SSD controllers & solutions, Flash memory card controllers and USB flash drive controllers.
Embedded memory controllers product offering includes controllers for eMMC and its derivative multi-chip package (“MCP”) embedded memory, which combine NAND flash and mobile DRAM in an integrated solution; controllers for other embedded memory solutions and commercial-grade and industrial-grade products.
On the other hand, SSD controllers and solutions comprises SATA 6Gb/s SSD controllers for both NAND-cache SSDs and full-size client SSDs; controllers for single-chip SSDs and IDE/PATA disk-on-modules (“DOMs”); Ferri single-package SSD solutions, small single-chip SSDs. The newly launched PCIe Gen5 client SSD controller, SM2508, ensures better performance by reducing power consumption and advanced error correction.
Shannon enterprise SSD solutions aimed at enterprise and hyperscale data centers offer high storage capacity, low latency, higher input/output operations per second (IOPS), and high performance capabilities.
Flash memory card controllers offers an extensive line of high-performance controllers for all major flash memory card formats, including Compact Flash (“CF”), SD and Memory Stick (“MS”).
USB flash drive controllers include USB flash drives that are popular in computing and consumer electronics markets for portable storage of files.
In 2024, Silicon Motion reported non-GAAP revenues of $803.6 million.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Silicon Motion, ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2016 would be worth $4,096.61, or a gain of 309.66%, as of February 9, 2026, and this return excludes dividends but includes price increases.
In comparison, the S&P 500's gained 268.73% and the price of gold went up 305.50% over the same time frame.
Analysts are anticipating more upside for SIMO.
Silicon Motion reported mixed fourth-quarter 2025 results, with revenues beating the Zacks Consensus Estimate but adjusted earnings missing the same. It is witnessing healthy traction in multiple verticals. The company expects to benefit from the launch of several new products, including a 6nm, 8-channel PCIe5 client SSD controller, new eMMC and UFS controllers and MicroSD controllers. Strong balance sheet and robust liquidity are tailwinds. However, Silicon Motion faces stiff rivalry from other players in the market. In the mobile storage market, the company encounters major competitors like Micron, Microchip, Marvell and ON Semiconductor. Silicon Motion is exposed to significant customer-concentration risk. Given the competitive nature of the industry, loss of any of its key customers will severely impact the company's results.
Over the past four weeks, shares have rallied 13.21%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2026 compared to none lower. The consensus estimate has moved up as well.
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Silicon Motion Technology Corporation (SIMO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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