Silicon Motion (SIMO) Launch Advance SSD Solution for AI Devices

Silicon Motion Technology Corporation SIMO has recently launched an ultra-fast, single-chip controller, SM2322, to address the growing demand for high-density, external portable SSDs (Solid State Drive). There is a growing prevalence of AI-enabled smart devices and various gaming consoles.

The complex tasks performed by these devices, such as capturing and storing high-resolution media, real-time language translation and voice assistant, all generate a large pool of data. Modern games are characterized by high-definition graphics, regular updates, and quick loading time. SSD manufacturers are looking for a storage solution that will match the specifications needed for advanced AI-powered devices.

Recognizing this emerging trend, SIMO brings the SM2322 in its impressive suite of SSD controllers. The solution featuring USB 3.2 Gen 2X2 specifications can deliver a remarkable data transfer rate of 20 GB/s. It boasts a read and write transfer speed of 2,100 MB/s and 2,000 MB/s, respectively. The high read speed ensures quick access to any large files while the high write speed ensures faster saves of information. With a capacity of up to 8TB capacity, the SM2322 can store substantial amounts of information, such as gaming files, libraries and large data sets with ease.

SIMO’s integrated error correction technology swiftly detects errors in data stored in NAND flash memory. Additionally, it matches the stringent security standards and compliance of Trusted Computing Group with AES 256-bit encryption and fingerprint security features.  The single-chip solution eliminates the need for separate USB bridge chips, significantly reducing both the Bill of Materials costs and energy usage. Compatibility with various operating systems including macOS, Android OS and Windows is an added advantage.

With its high-speed data transfer, robust security measures, and large storage capacity, the SM2322 is ideal for the modern AI-driven digital landscape. It effectively meets the needs of HD content creators, gamers, and AI smartphone users who require high-density, high-performance portable storage.

Silicon Motion has established itself as the leading merchant supplier of client SSD controllers to module makers. It is well-equipped to adapt to industry changes, as it has collaborated with flash vendors to develop proprietary controller technology to overcome the existing weakness of 3D NAND and outshine peers. The company has expanded its SSD controller program engagements with PC OEMs and eMMC/UFS controllers for smartphones, automotive applications and IoT/smart devices.

Shares of the company have gained 22.3% in the past year compared with the industry’s growth of 54.1%.


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Zacks Rank & Other Stocks to Consider

SIMO currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks from the industry have been discussed below.

NVIDIA Corporation NVDA, sporting a Zacks Rank #1 at present, delivered a trailing four-quarter earnings surprise of 18.43%, on average. In the last reported quarter, it delivered an earnings surprise of 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.

Arista Networks, Inc. ANET, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 15.68% and delivered an earnings surprise of 15.39%, on average, in the trailing four quarters.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

Motorola Solutions, Inc. MSI, carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 7.5%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 9.5%.

Motorola provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure service providers. It develops and services both analog and digital two-way radio, voice and data communications products and systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of enterprise markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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