QM · rank #18 · 2026-10-20
SMTC
NASDAQ · $13.46B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +203.93% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +23.7% |
| Profit margin Net profit margin, trailing 12 months. | +13.1% |
| Market cap (USD) Size filter: > $500M required. | $13.46B |
| Anchor (recent) Close on 2026-09-18 | $185.00 |
| Anchor (far) Close on 2025-09-19 | $60.87 |
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
Semtech is a semiconductor company delivering high-performance analog signal-integrity, LoRa IoT, and circuit-protection solutions, with AI data-center connectivity now its fastest-growing and largest revenue driver.
Rationale
The momentum_12_1 of 2.04 reflects a genuine fundamental inflection — record $100M data-center revenue up 91% YoY, Q3 guidance raised to $415–$420M, and a confirmed hyperscaler engagement cycle — while ROE of 23.7% and 13% profit margins validate the quality screen as earnings power improves structurally.
Material risks
- 1AI data-center revenue concentration is rising sharply with no disclosed contractual backlog or named-customer exclusivity, meaning a hyperscaler spending pause or a single design-win loss could collapse the revenue ramp that is driving both the momentum and quality signals simultaneously.
- 2Larger competitors (Broadcom, Marvell) with superior R&D budgets are contesting the same copper and optical signal-chain sockets, and evolving AI architectures (e.g., CPO integration) could commoditize Semtech's discrete analog components before the FY2030 framework materializes.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.