QM · rank #18 · 2026-10-27
SMTC
NASDAQ · $12.32B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +189.50% |
|---|---|
| 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. | $12.32B |
| Anchor (recent) Close on 2026-09-25 | $182.30 |
| Anchor (far) Close on 2025-09-26 | $62.97 |
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 (SMTC) is a semiconductor supplier focused on AI-data-center signal integrity and LoRa IoT connectivity, with data-center products spanning optical and active-copper interconnects.
Rationale
The stock’s strong 12-1 momentum pairs with high ROE and healthy margins, and the recent analyst day, raised guidance, and record data-center revenue suggest improving fundamentals behind the trend.
Material risks
- 1Heavy China exposure—47% of fiscal 2026 sales from China and 82% outside the U.S.—creates meaningful demand, export-control, tariff, and geopolitical risk.
- 2The AI-interconnect thesis could weaken if customers in-source signal-integrity/optical content or if PAM4, retimer, and active-copper offerings commoditize and erode design wins.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.