QM · rank #18 · 2026-10-22
SMTC
NASDAQ · $13.46B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +183.33% |
|---|---|
| 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 2026-09-22 | $174.33 |
| Anchor (far) Close on 2025-09-22 | $61.53 |
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 connectivity solutions, with AI data-center revenue now its fastest-growing and largest segment at a record $100M in Q2 FY2027.
Rationale
The momentum_12_1 of 1.83 reflects genuine fundamental acceleration—91% YoY data-center revenue growth, a Q3 guidance raise to $415–$420M, and an analyst-day re-rating—while ROE of 23.7% and 13% profit margins confirm the quality screen is capturing real earnings power, not just sentiment.
Material risks
- 1AI data-center revenue concentration is rising sharply, meaning a hyperscaler capex pause or a single large customer internalizing copper/optical signal-integrity capability would disproportionately impair both revenue and the momentum signal simultaneously.
- 2Broadcom and Marvell can outspend Semtech in R&D, and the brief explicitly flags that copper, optical, and analog connectivity technologies may be displaced or commoditized as AI architectures evolve, threatening the margin profile underpinning the quality signal.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.