QM · rank #13 · 2026-10-26
SIMO
NASDAQ · $6.35B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +208.50% |
|---|---|
| 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. | $6.35B |
| Anchor (recent) Close on 2026-09-25 | $276.23 |
| Anchor (far) Close on 2025-09-26 | $89.54 |
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 semiconductor supplier of NAND-flash controllers spanning client SSDs, embedded eMMC/UFS, automotive systems, and MonTitan enterprise/AI storage platforms.
Rationale
The strong quality_momentum signal (12-1 momentum of 2.0850, 31.6% TTM ROE, and 22.1% profit margin) is reinforced by Q2 2026 revenue surging 127% YoY to $451.0 million and full-year revenue growth projected to exceed 100% as MonTitan enterprise controllers enter commercial production.
Material risks
- 1Customer adoption for MonTitan relies on non-contractual purchase orders without long-term backlog commitments, leaving SIMO vulnerable to order postponements, customer in-house controller development, or displacement by Phison.
- 2Consumer NAND pricing and supply volatility, combined with U.S.-China trade restrictions and Taiwan geopolitical tensions, pose risk to component availability and broader controller demand.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.