QM · rank #18 · 2026-09-04
SIMO
NASDAQ · $8.37B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +235.30% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +31.6% |
| Profit margin Net profit margin, trailing 12 months. | +22.1% |
| Market cap (USD) Size filter: > $500M required. | $8.37B |
| Anchor (recent) Close on 2026-08-05 | $246.15 |
| Anchor (far) Close on 2025-08-05 | $73.41 |
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 the world's leading merchant NAND flash controller supplier, serving data centers, PCs, smartphones, and automotive markets with a 10B+ unit shipped portfolio spanning client SSDs, enterprise SSDs, and embedded eMMC/UFS controllers.
Rationale
The quality_momentum signal is strongly reinforced by SIMO's 127% YoY revenue surge, 32% sequential growth, ~50% gross margins, and 31.6% ROE — all driven by structural AI storage demand pulling through its MonTitan enterprise SSD platform at scale.
Material risks
- 1Hyperscalers and large NAND makers developing proprietary in-house controllers is a concrete, named disqualifier — if even one major customer internalizes controller design, SIMO's merchant model faces irreversible volume and pricing pressure.
- 2The $1.15B zero-coupon convertible note issuance adds meaningful future dilution and balance-sheet complexity at a moment when the stock is momentum-elevated, creating asymmetric downside if growth decelerates before conversion terms reset.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.