How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and 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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Silicon Motion, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in February 2016 would be worth $4,102.96, or a 310.30% gain, as of February 25, 2026, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 257.04% and gold's return of 304.89% over the same time frame.
Analysts are forecasting more upside for SIMO too.
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. Companies' UFS solution is validated on Qualcomm's Snapdragon Cockpit platform, boosting confidence among automakers and strengthening its automotive storage presence. However, 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.
The stock is up 16.91% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2026. 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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