10 Cheap Semiconductor Stocks to Buy Now

5. Silicon Motion Technology Corporation (NASDAQ:SIMO)

Number of Hedge Fund Holders: 39

P/E: 15.7

Silicon Motion Technology Corporation (NASDAQ:SIMO), a Hong Kong-based leader in NAND flash controllers and storage solutions, is showing renewed momentum after a tough stretch. On April 24, BofA Securities upgraded the stock to Neutral from Underperform, despite trimming its price target to $47 from $50. Shares rallied nearly 8% on the news, as analyst Simon Woo noted the stock had been “overly corrected” following a 40% decline since August 2024.

Currently trading at a price-to-book ratio of 1.7—below its historical 2–4x range—Silicon Motion Technology Corporation (NASDAQ:SIMO) presents value. The company also offers a robust 5.05% dividend yield, with a confirmed quarterly payout of $0.50 per ADS, and the next installment is due May 22, 2025.

Silicon Motion Technology Corporation (NASDAQ:SIMO)’s revenue grew 25.2% year-over-year to $802.1 million, with net income surging 70.9% to $90.6 million. EPS rose 69.6% to $2.69. Meanwhile, Silicon Motion continues to innovate, recently launching its MonTitan SSD RDK platform, targeting AI-driven enterprise storage.

With 84.1% institutional ownership, a 55% upside to the $70 median price target, and 89% analyst Buy ratings, Silicon Motion Technology Corporation (NASDAQ:SIMO) could offer strong rebound potential amongst cheap semiconductor stocks to buy.