← Quality Momentum

QM · rank #12 · 2026-10-27

UMC

NYSE · $47.37B (USD)

SignalSell
verdict · CAUTION

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+222.41%
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.
$47.37B
Anchor (recent)
Close on 2026-09-25
$24.31
Anchor (far)
Close on 2025-09-26
$7.54

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

UMC is a global pure-play foundry in mature/specialty semiconductors, with improving 22/28nm mix, rising utilization, and early silicon-photonics production scaling from Singapore.

Rationale

The name fits quality_momentum because 12-month momentum is strong and fundamentals are improving, with 21%+ ROE, 33% profit margin, and Q2/Q3 guide points showing higher utilization, firmer ASPs, and mid-30% margin potential.

Material risks

  • 1Mature-node overcapacity and subsidized Chinese capacity could commoditize UMC’s core wafers and pressure pricing/margins, undermining the quality leg of the trade.
  • 2Customer concentration and limited long-term revenue visibility leave UMC exposed if key programs are delayed or dual-sourced, despite the recent demand strength.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Error