QM · rank #11 · 2026-07-23
SIMO
NASDAQ · $9.43B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +363.95% |
|---|---|
| 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 2026-06-23 | $319.00 |
| Anchor (far) Close on 2025-06-23 | $68.76 |
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 product portfolio anchored by its MonTitan enterprise platform.
Rationale
Record Q1 2026 revenue of $342M (+105% YoY), a 20%+ ROE, 16% profit margins, and management guiding another 15–20% sequential revenue jump in Q2 confirm that both the momentum and quality signals are grounded in fundamental acceleration, not mere sentiment rotation.
Material risks
- 1Earnings report lands 6 days after the as-of date (2026-07-29), creating binary event risk that could gap the position sharply if Q2 execution misses the aggressive sequential growth guide or if enterprise MonTitan ramp disappoints.
- 2SIMO's revenue visibility depends on design wins rather than contracted backlog in a cyclical memory market, meaning any inventory correction at major NAND OEM customers could rapidly reverse the current demand surge.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.