QM · rank #17 · 2026-09-07
SIMO
NASDAQ · $8.37B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +239.25% |
|---|---|
| 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 2026-08-07 | $256.12 |
| Anchor (far) Close on 2025-08-08 | $75.50 |
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 and markets NAND flash controllers for SSDs, eMMC/UFS, and embedded storage across data center, PC, mobile, and automotive end markets, shipping over 10 billion controllers across its 24-year history.
Rationale
The quality_momentum signal is strongly reinforced by 127% YoY revenue growth, 32% sequential acceleration, ~50% gross margins, 31.6% ROE, and a 22%+ operating margin, all driven by structural AI-infrastructure storage demand pulling through SIMO's MonTitan and enterprise controller portfolio.
Material risks
- 1Hyperscalers and large NAND vendors increasingly developing proprietary in-house controller solutions is a concrete, named disqualifier — if captive controllers displace merchant supply at even one major customer, SIMO's revenue concentration risk crystallizes rapidly.
- 2The $1.15 billion of 0.00% convertible notes due 2031 adds meaningful future dilution and balance-sheet complexity at a moment when the stock is momentum-elevated, creating asymmetric downside if AI storage demand decelerates before the capital is productively deployed.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.