QM · rank #8 · 2026-10-20
UMC
NYSE · $52.47B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +244.68% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +21.3% |
| Profit margin Net profit margin, trailing 12 months. | +33.3% |
| Market cap (USD) Size filter: > $500M required. | $52.47B |
| Anchor (recent) Close on 2026-09-18 | $24.61 |
| Anchor (far) Close on 2025-09-19 | $7.14 |
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
UMC is a top-three pure-play foundry operating 12 Asian fabs focused on mature and specialty nodes (22/28nm, silicon photonics, advanced packaging) serving communications, automotive, IoT, and emerging AI infrastructure customers.
Rationale
Strong ROE (21%), 33% profit margins, and accelerating utilization (85% Q2→90%+ Q3 guided) with record 22nm revenue mix confirm the quality-momentum signal is grounded in real operational improvement, not pure sentiment rotation.
Material risks
- 1Chinese subsidized mature-node capacity (SMIC and peers) could compress ASPs and utilization gains precisely as UMC raises capex to $2B, creating a margin squeeze that invalidates the quality leg of the thesis.
- 2Silicon photonics is not yet a material revenue stream and hyperscaler in-house optical-interconnect development could cap the TAM expansion narrative before it becomes a financial reality.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.