QM · rank #11 · 2026-07-20
SIMO
NASDAQ · $11.07B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +368.22% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +20.3% |
| Profit margin Net profit margin, trailing 12 months. | +16.0% |
| Market cap (USD) Size filter: > $500M required. | $11.07B |
| Anchor (recent) Close on 2026-06-18 | $321.66 |
| Anchor (far) Close on 2025-06-20 | $68.70 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Silicon Motion (SIMO) is a fabless semiconductor company designing NAND flash controllers for client SSDs, embedded storage, automotive, and enterprise applications, with a growing PCIe Gen5 and MonTitan enterprise platform portfolio.
Rationale
Record Q1 2026 revenue of $342.1M (+105% YoY), a 15–20% sequential Q2 guide-up, 20% ROE, and a 16% profit margin confirm that both the momentum and quality signals are grounded in fundamental earnings acceleration rather than pure sentiment rotation.
Material risks
- 1Revenue visibility depends on design-win cycles rather than contracted backlog, meaning a single large customer (e.g., a major NAND OEM) internalizing controller development could rapidly hollow out the growth thesis without warning.
- 2The PCIe Gen5 controller market is attracting intensified competition from Phison and Maxio, and SIMO's pricing power and margin sustainability are untested at scale if the current upcycle in NAND demand reverses.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.