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Silicon Motion Technology’s (SIMO) New Controller to Ease Power and Memory Constraints for Customers

Silicon Motion Technology Corp. (NASDAQ:SIMO) is one of the 10 Most Undervalued Semiconductor Stocks to Invest in. On December 15, Craig-Hallum analyst Anthony Stoss maintained his Buy rating on Silicon Motion Technology Corp. (NASDAQ:SIMO). The company now has a median target price of $120, according to CNN’s compilation of 9 analyst ratings, implying 41.89% upside from current levels.

This median price target is close to $125 price target that Craig Ellis of B. Riley Securities assigned on November 13. The stock rallied nearly 20% after that rating, but is now dropping back to the same level as the broader market declines.

Following the announcement above, the company released the SM8388, a power-efficient SSD controller. Its low power consumption, high performance, high capacity, and relatively low cost make it a leading controller in the market. The enterprise-grade security features further add to the controller’s reliability when deployed in enterprise environments.

With the above development, the company now addresses two key bottlenecks facing companies building AI infrastructure: power costs and memory constraints. As AI workloads generate massive amounts of new data, Nearline SSDs become increasingly important. This is an improvement over HDDs, which can’t meet the performance and power-efficiency requirements of these AI workloads, which is why the stock price rose heading into December.

Silicon Motion Technology Corp. (NASDAQ:SIMO) develops, manufactures, and supplies essential semiconductor equipment to the electronics market, including flash controllers and storage solutions. It is based in Hong Kong, with offices in Taiwan and the United States.

While we acknowledge the risk and potential of SIMO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SIMO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT:  Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy and 30 Most Fantastic Stocks Every Investor Should Pay Attention To.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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