If you invested $ 1,000 in Silicon Motion 10 years ago, this is what you would have now
For most investors, how important the price of a stock changes over time is. This factor can affect your investment portfolio and help you compare investment results across sectors and industries.
Fear of Running Out, or FOMO, also plays a role in investing, especially with particular tech giants, as well as stocks popular with consumers.
What if you had invested in Silicon Motion (SIMO) ten years ago? It might not have been easy to keep SIMO all this time, but if it was, how much would your investment be worth today?
In-depth analysis of Silicon Motion’s activity
With that in mind, let’s take a look at the main business drivers for Silicon Motion.
Founded in 1995, Silicon Motion Technology Corporation is a leading developer of microcontroller integrated circuits for NAND flash storage devices.
The semiconductor company also designs, develops and markets high performance, low power semiconductor solutions for original equipment manufacturers (“OEMs”) and other customers.
On May 31, 2019, Silicon Motion announced that it had completed the sale of its mobile communications business (FCI product line) to Dialog Semiconductor Plc. for $ 45 million.
After the divestiture, the company’s product portfolio is primarily aimed at SSD controllers in the mobile storage market.
Mobile storage: The main offerings in the market are on-board memory controllers, SSD controllers and solutions, Flash memory card controllers and USB stick controllers.
The on-board memory controller product offering includes controllers for eMMC and its derivative multi-chip on-board memory (“MCP”), which combine NAND flash and mobile DRAM in an integrated solution; controllers for other on-board memory solutions and commercial and industrial grade products.
On the other hand, SSD controllers and solutions include SATA 6Gb / s SSD controllers for NAND-cache SSDs and full-size client SSDs; controllers for single chip SSDs and drives on IDE / PATA (“DOM”) modules; Monobloc Ferri SSD solutions, small single chip SSDs.
Shannon enterprise SSD solutions for enterprise and large-scale data centers deliver high storage capacity, low latency, higher input / output operations per second (IOPS) and high performance capabilities .
Flash memory card controllers offer a full 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 which are popular in the computer and consumer electronics markets for portable file storage.
Silicon Motion devotes considerable resources to research and development. As of April 30, 2020, the company held 1,522 patents (and 1,302 pending applications) worldwide.
In 2020, Silicon Motion reported non-GAAP revenue of $ 539.5 million.
Building a successful investment portfolio takes a combination of research, patience and a little bit of risk. For Silicon Motion, if you bought stocks ten years ago, you are probably feeling very good about your investment today.
An investment of $ 1,000 made in August 2011 would be worth $ 6,831.87, or a gain of 583.19%, as at August 23, 2021, according to our calculations. This yield excludes dividends but includes price appreciation.
Compare that to the S&P 500’s 295.33% rise and gold’s -6.17% return over the same period.
Analysts are anticipating more potential for SIMO.
Silicon Motion is benefiting from strong demand for its solid state drive controllers as well as eMMC and UFS controllers, which continued to grow through the second quarter of 2021. Profits and revenues increased year over year. ‘other. The growing adoption of integrated memory controllers amid increasing smartphone sales is a positive development. The surge in PC sales triggered by online learning and the work-from-home wave bodes well. Further design wins for PCIe Gen4 SSD controllers from NAND manufacturers also bode well. The efforts to reward shareholders through dividends are noteworthy. The company’s shares have outperformed the industry since the start of the year. Nonetheless, production delays due to the pandemic and supply chain constraints are likely to hamper near-term prospects. Strong competition in the USB flash drive controller market is likely to hamper the growth.
Technological IPOs with huge profit potential: Last year, major IPOs jumped 299% in the first two months. With record amounts of cash flowing in IPOs and a record stock market, this year could be even more lucrative.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.