Yahoo Finance Is Silicon Motion Technology Corporation (SIMO) Well-Positioned to Capitalize Growth?
Investment management company Ave Maria recently released its “Ave Maria Growth Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund's total return in the first quarter was 9.17% compared to the 10.56% return for the S&P 500 Index. Since its inception on May 1, 2003, the fund's annualized return is 11.65% compared to the index’s annualized return of 10.86%. You can check the top 5 holdings of the fund to know its best picks in 2024.
Ave Maria Growth Fund highlighted stocks like Silicon Motion Technology Corporation (NASDAQ:SIMO), in the first quarter 2024 investor letter. Silicon Motion Technology Corporation (NASDAQ:SIMO) offers NAND flash controllers for solid-state storage devices. The one-month return of Silicon Motion Technology Corporation (NASDAQ:SIMO) was 8.31%, and its shares gained 15.94% of their value over the last 52 weeks. On June 7, 2024, Silicon Motion Technology Corporation (NASDAQ:SIMO) stock closed at $82.54 per share with a market capitalization of $2.78 billion.
Ave Maria Growth Fund stated the following regarding Silicon Motion Technology Corporation (NASDAQ:SIMO) in its first quarter 2024 investor letter:
"Silicon Motion Technology Corporation (NASDAQ:SIMO) is a fabless semiconductor company that specializes in low-end flash memory controllers. Memory manufacturers often design their own controllers in-house, but the rising cost of developing a chip is making it increasingly beneficial to outsource the more commoditized low-end controller development to a third party like Silicon Motion. This outsourcing trend is set to move from consumer applications into the server end market, and Silicon Motion’s new enterprise controller is well positioned to capitalize on the growth."
An engineer in a lab coat tweaking a circuit board with intricate semiconductors.
Silicon Motion Technology Corporation (NASDAQ:SIMO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Silicon Motion Technology Corporation (NASDAQ:SIMO) at the end of the first quarter which was 44 in the previous quarter. Silicon Motion Technology Corporation (SIMO) reported first-quarter sales of $189 million, down 6% sequentially. While we acknowledge the potential of Silicon Motion Technology Corporation (NASDAQ:SIMO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Silicon Motion Technology Corporation (NASDAQ:SIMO) and shared the list of best data center stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
