QM · rank #20 · 2026-10-20
SIMO
NASDAQ · $7.16B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +198.04% |
|---|---|
| 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. | $7.16B |
| Anchor (recent) Close on 2026-09-18 | $272.11 |
| Anchor (far) Close on 2025-09-19 | $91.30 |
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 Technology is a merchant NAND controller supplier spanning embedded, client SSD, automotive, enterprise boot, and MonTitan enterprise SSD markets, with record Q2 2026 revenue of $451M driven by explosive MonTitan commercial ramp.
Rationale
The momentum_12_1 signal of 1.98 is directly reinforced by fundamental acceleration—127% YoY revenue growth, 50%+ gross margins, a 30%+ operating margin exit-rate target, and five additional Tier-1 MonTitan ramps expected in H2 2026—making this a quality-earnings-driven momentum story rather than pure sentiment rotation.
Material risks
- 1NAND scarcity and delayed 2Tb QLC availability could stall MonTitan scaling until ~2028, directly threatening the revenue-doubling thesis and the 5–10% MonTitan revenue-mix target that underpins forward estimates.
- 2Hyperscalers, NAND makers, or module makers could internalize enterprise boot-drive or enterprise SSD controller development, eroding SIMO's "largest merchant supplier" position that currently has no disclosed binding sole-source contracts or quantified backlog to defend it.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.