Quality Momentum

QM · rank #5 · 2026-09-11

ASM

AMSTERDAM · EUR · $47.63B (USD)

SignalStrong Buy4.1strength 4.1 / 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.
+109.95%
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).
$47.63B
Anchor (recent)
Close on 2026-08-12
$897.80
Anchor (far)
Close on 2025-08-12
$427.64

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 leading 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 12-month price momentum reflects genuine earnings acceleration rather than sentiment drift.

Material risks

  • 1China export-control tightening could abruptly remove the mature-node logic/foundry revenue stream that contributed meaningfully to Q2 2026 strength, creating a discrete downside step rather than a gradual fade.
  • 2No long-term fixed backlog means revenue visibility is tied to customers' capex cycles; a logic or HBM DRAM spending rotation 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