QM · rank #8 · 2026-10-22
UMC
NYSE · $52.47B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +254.96% |
|---|---|
| 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 2026-09-22 | $25.77 |
| Anchor (far) Close on 2025-09-22 | $7.26 |
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 fabs across Asia, focused on mature and specialty nodes (22/28nm) with an emerging silicon-photonics capability ramping in Singapore for AI optical interconnects.
Rationale
Strong momentum (12-1: 2.55) is directly reinforced by concrete operational catalysts — Q2 revenue +12.6% QoQ, utilization climbing from 85% toward 90%+, record 22nm mix, and a capex raise signaling management confidence — while a 33% profit margin and 21% ROE confirm the quality screen is not a mirage.
Material risks
- 1Earnings are reported 6 days post as-of-date (Oct 28), creating binary event risk where any Q3 gross margin miss versus the guided mid-30% range could sharply reverse the momentum signal before a position is sized.
- 2Chinese subsidized mature-node capacity (SMIC and peers) continues to pressure ASPs and utilization at exactly the commodity nodes where UMC competes, threatening the margin recovery thesis if the foundry cycle stalls before silicon photonics becomes a material revenue contributor.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.