Silicon Motion: Further Upside Beckons As Demand For Enterprise-Grade SSDs Steps Up

Silicon Motion Technology remains a buy, driven by robust enterprise SSD demand, especially in QLC NAND for hyperscale data centers. For the upcoming Q1, SIMO is guiding for 5-10% QoQ revenue growth in what has traditionally been their seasonally weakest quarter, while liquidation of elevated inventory could abet operating cash. Despite a forward P/E of 25x, SIMO's near 60% forward earnings growth yields a compelling PEG of less than 0.5x, which is more attractive than MRVL.