QM · rank #10 · 2026-06-04
SIMO
NASDAQ · $9.09B
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +364.11% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +20.3% |
| Profit margin Net profit margin, trailing 12 months. | +16.0% |
| Market cap Size filter: > $500M required. | $9.09B |
| Anchor (recent) Close on 2026-05-05 | $237.92 |
| Anchor (far) Close on 2025-05-05 | $51.26 |
The AI research card
Independent qualitative review of each pick before the order is placed.
Summary
Silicon Motion is a fabless NAND flash controller supplier for SSDs and mobile storage, benefiting from a cyclical upturn in PC and AI-adjacent storage demand with improving customer visibility into 2026.
Rationale
The 12-month momentum signal (3.64) combined with strong ROE (20.3%) and profit margin (16%) reflects a company executing well through a recovery cycle with operating leverage, recent upside guidance, and design wins in next-gen PCIe Gen5 controllers that should drive revenue growth and margin expansion.
Material risks
- 1Concentrated customer base and outsourced manufacturing create acute vulnerability to inventory corrections, foundry disruptions, or customer consolidation that could rapidly reverse the current demand tailwind and compress margins.
- 2U.S.–China export controls and geopolitical tensions pose material licensing and supply-chain risk given SIMO's Asian manufacturing footprint and reliance on customers in China and Taiwan for a significant portion of revenue.
Verdict reasoning
two_stage score=+3/3 verdicts={'openai': 'PROCEED', 'gemini': 'PROCEED', 'claude': 'PROCEED'} brief=caller-supplied