Quality Momentum

QM · rank #7 · 2026-09-08

ASM

AMSTERDAM · EUR · $44.53B (USD)

SignalStrong Buy4.0strength 4.0 / 10
verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+104.03%
ROE TTM
Return on equity, trailing 12 months.
+26.8%
Profit margin
Net profit margin, trailing 12 months.
+31.9%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$44.53B
Anchor (recent)
Close on 2026-08-07
$854.00
Anchor (far)
Close on 2025-08-08
$418.57

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

ASM International is a wafer-processing equipment supplier specializing in advanced deposition tools critical for leading-edge logic/foundry scaling and HBM DRAM 3D architectures.

Rationale

Record Q2 2026 revenue of €1,003M (+24% YoY), 51.9% gross margin, 26.8% ROE, and 31.9% net margin confirm the quality signals are grounded in real operational outperformance, while the 12-1 momentum score of 1.04 reflects sustained price appreciation consistent with earnings delivery.

Material risks

  • 1China export-control escalation is the most concrete disqualifier — mature-node logic/foundry in China contributed meaningfully to Q2 2026 revenue, and any tightening of deposition-tool restrictions could remove a material demand pillar with no near-term substitute.
  • 2Revenue visibility is limited to near-term order flow rather than long-term contracted backlog, meaning a capex rotation by leading foundry or HBM DRAM customers could rapidly deflate both the momentum and quality signals simultaneously.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.

OpenAI
Proceed
Claude
Proceed
Gemini
Proceed