Silicon Motion Technology (SIMO) has "abundant opportunities in 2025 and beyond" with the key takeaway from a meeting with management seen "as the sheer number of likely
upside catalysts" in the next few years, Wedbush Securities said Monday in a report.
The company started shipping its 6-nanometer high-end fifth generation peripheral component interconnect express controllers for notebooks, and with an anticipated production ramp through 2025 after four manufacturing accords, Silicon Motion may capture over 50% of the market, Wedbush said.
Silicon Motion is shipping sample quantities of its MonTitan enterprise solid-state drive controllers and expects revenue to make up 5% to 10% of sales by 2026-27, marking "a projection we view as extremely conservative," Wedbush said.
The company's success in the initial implementation of universal flash storage quad-level cell controller may create new revenue streams and enable Silicon Motion to sell controllers directly to handset customers, the report said.
The company may deliver a double-digit compound annual growth in the next few years "even assuming just stable end markets," Wedbush said.
Wedbush reiterated its outperform rating on Silicon Motion's stock and with a price target at $90.
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