QM · rank #10 · 2026-07-21
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 $342M (+105% YoY), a 15–20% sequential Q2 guide-up, 20% ROE, and a 3.68 momentum score collectively confirm that both the quality and momentum legs of the signal are grounded in real fundamental acceleration rather than sentiment drift.
Material risks
- 1Revenue visibility is design-win-driven with no contracted backlog, meaning a single large customer (e.g., a major NAND OEM) internalizing controller development or shifting to a rival like Phison/Maxio could cause abrupt revenue cliff without warning.
- 2The 105% YoY growth rate embeds a low-base effect from a prior cyclical trough, making the momentum signal partially backward-looking; any demand softening in AI PC or datacenter SSD build cycles in H2 2026 could sharply compress the sequential growth narrative that is sustaining the stock's re-rating.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.