BofA double downgrades Silicon Motion to Sell on lack of AI exposure

BofA analyst Simon Woo double downgraded Silicon Motion to Underperform from Buy with a price target of $60, down from $90. The company’s second half of 2024 guidance already reflects minimal growth versus the Q2 level and BofA does not expect any meaningful growth after the first half of 2024 upturn, the analyst tells investors in a research note. The firm cites Silicon Motion’s low exposure to artificial intelligence and enterprise solid state drives for the lack of growth. It cut the company’s estimates and double downgraded the shares.