Silicon Motion Technology Is A Buy

  • The company has been battered by a shortage of NAND flash and price increases that compress its margins, but these are temporary headwinds.
  • Unless the company has the timing of the Q4 recovery terribly wrong this is almost a no-brainer.
  • The company is well positioned and when the supply issues are resolved, it can ride a wave of new adoption of NAND flash in various sectors.
  • The shares are cheap.
  • Also, management has just approved a $200M share buyback program and expressed intention to buy for their own accounts as well.

Source: Silicon Motion Technology Is A Buy – Silicon Motion Technology Corporation (NASDAQ:SIMO) | Seeking Alpha