10 Best Small-Cap Stocks to Buy Now

2. Silicon Motion Technology Corporation (NASDAQ:SIMO)

Analyst Upside: 22.06%

No. of Hedge Fund Holders: 39

Silicon Motion Technology Corporation (NASDAQ:SIMO) manufactures NAND flash controllers for SSDs and other solid-state storage devices that are used in data centers.

The company had a notable 2024, with revenue soaring by 25% year over year. SIMO’s gross margin also soared to more than 46% from 43%, and its operating margin jumped 11.9% from a year ago. Silicon Motion Technology Corporation (NASDAQ:SIMO) is investing in next-generation solutions to expand its opportunities for long-term share gains and sustainable revenue growth.

SIMO has entered the enterprise market, adding six customers and beginning initial shipments of a new product. The company has also launched a high-end 6-nanometer 8-channel PCIe 5 SSD controller, securing a dominant market position. On top of that, the company’s position in the automotive segment has also improved, with its automotive business sales up by 5% year-over-year, with a strong backlog entering 2025.