QM · rank #11 · 2026-07-24
SIMO
NASDAQ · $9.43B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +352.94% |
|---|---|
| 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 2026-06-24 | $321.66 |
| Anchor (far) Close on 2025-06-24 | $71.02 |
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 Taiwan-based independent NAND flash controller IC designer supplying SSD and embedded storage OEMs globally, with accelerating share gains in enterprise and PCIe 5.0 client markets.
Rationale
The momentum_12_1 of 3.53 is directly reinforced by two consecutive record revenue quarters and Q2 guidance implying ~100% YoY growth, while ROE of 20% and 16% profit margins confirm the quality screen is capturing real earnings power, not multiple expansion alone.
Material risks
- 1Customer insourcing risk is the primary thesis-breaker — SIMO's concentrated OEM customer base retains the capability to develop in-house controllers, and the research brief explicitly flags no sole-source or long-term contractual protections anchoring the design-win revenue stream.
- 2Earnings are reported 5 days after the as-of date (July 29), and consensus adjusted EPS of ~$1.31 sits well below Q1's $1.58 non-GAAP print, creating binary event risk where a guidance miss or margin disappointment could sharply reverse the momentum signal before a position matures.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.