QM · rank #8 · 2026-07-22
SIMO
NASDAQ · $9.43B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +390.40% |
|---|---|
| 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. | $9.43B |
| Anchor (recent) Close on 2026-06-22 | $336.90 |
| 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) designs NAND flash SSD controllers for client, enterprise, automotive, and embedded storage markets, with a growing PCIe Gen5 and AI PC portfolio anchored by its MonTitan enterprise platform.
Rationale
Record Q1 2026 revenue of $342M (+105% YoY), a 15–20% sequential Q2 guide-up, 20% ROE, and 16% profit margins confirm that momentum_12_1 of 3.9x is grounded in genuine fundamental acceleration rather than pure sentiment rotation.
Material risks
- 1Earnings are due 7 days post as-of-date (2026-07-29), creating binary event risk that could gap the position sharply against the trade before the signal can be harvested.
- 2Revenue visibility depends on design-win cycles rather than contracted backlog in a cyclical NAND market, meaning any inventory correction at key SSD OEM or hyperscaler customers could rapidly reverse the sequential growth trajectory.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.