QM · rank #20 · 2026-10-21
SIMO
NASDAQ · $7.16B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +194.63% |
|---|---|
| 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 2026-09-21 | $269.00 |
| 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 serving embedded, client SSD, automotive, enterprise boot-drive, and emerging MonTitan enterprise SSD markets, with record Q2 2026 revenue of $451M driven by explosive enterprise and automotive growth.
Rationale
The quality_momentum signal is reinforced by genuine fundamental acceleration—127% YoY revenue growth, 50%+ gross margins, 31.6% ROE, and a clear product cycle catalyst in MonTitan enterprise ramps with five additional Tier 1 customers expected in H2 2026—not mere sentiment rotation.
Material risks
- 1NAND scarcity and delayed 2Tb QLC availability could stall MonTitan scaling until ~2028, directly capping the enterprise revenue ramp that is the primary driver of the momentum signal's continuation.
- 2Q3 earnings land October 28—seven days after the as-of date—creating binary event risk where a guidance miss or margin disappointment on the $519–541M range could sharply reverse the momentum signal before a position can be adjusted.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.