On September 08, 2026, Semtech Corp SMTC shares rose 10.0%, reaching a current price of $162.62. This price is notably high compared to its 52-week range of $57.50 to $177.35, reflecting a significant upward trend in share performance.
GF Value™ verdict: The current price is $162.62, which is 252.0% higher than the GF Value™ estimate of $46.20, indicating that the stock is significantly overvalued.GF Score™ and what it means: Semtech has a GF Score™ of 73/100, which categorizes it as above average in terms of its overall quality and performance metrics.Most notable signal: Insiders have sold $16.2 million worth of shares over the past 12 months, with no insider buying, suggesting potential concerns regarding the company's outlook.Is SMTC Overvalued or Undervalued?Given the current share price of $162.62 and the GF Value™ of $46.20, Semtech Corp appears significantly overvalued with a margin of safety of -252.0%. The GF Valuation label indicates that the stock is significantly overvalued, raising concerns regarding future performance. GF Value™ is GuruFocus' intrinsic value estimate, which takes into account historical trading multiples, past business growth, and future performance estimates. Investors may be taking on considerable risk by purchasing shares at this elevated price level, as the gap between the current price and intrinsic value suggests limited upside potential.
The significant overvaluation raises questions about the sustainability of the recent stock price rally, particularly in light of the company's financial fundamentals and market conditions. The disconnect between market price and intrinsic value may prompt caution among potential investors, as high valuations can lead to increased volatility and downside risk.
How Does SMTC's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)107.7x35.6x (5-Year Median)Forward P/E48.2xN/ASemtech's current P/E ratio of 107.7x is significantly above its 5-year median of 35.6x, indicating that the stock is trading at a much higher valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict, reinforcing the conclusion that the stock is overvalued. The forward P/E of 48.2x, while lower than the trailing P/E, still suggests that the market is pricing in substantial growth expectations, which may not be justified given the current valuation metrics.
What Does SMTC's GF Score™ Tell Us?The GF Score™ evaluates a company based on various factors that impact its overall quality and performance. Semtech's GF Score™ of 73/100 indicates that it is above average, with strengths in financial strength, profitability, and growth. However, it has a notably weak valuation rank of 1/10, suggesting that the stock is not favorably priced compared to its financial metrics.
MetricRatingGF Score™73/100Financial Strength7/10Profitability7/10Growth7/10Valuation1/10Momentum9/10The strength of Semtech's financial health, profitability, and growth prospects is somewhat counterbalanced by its weak valuation rank. The high momentum rank of 9/10 indicates that the stock has been performing well recently, but this may not be sustainable given the significant overvaluation indicated by the GF Value™ estimate.
What Are Gurus and Insiders Doing with SMTC?Currently, 8 gurus hold Semtech stock, with 4 adding to their positions and 5 trimming their holdings in recent quarters. This mixed activity among institutional investors suggests a lack of consensus on the stock's future prospects. Notably, insiders have sold $16.2 million worth of shares over the past 12 months, with no reported insider buying, which may signal a lack of confidence in the company's future performance and could be a red flag for potential investors.
The pattern of insider selling, especially without any purchasing activity, indicates that those closest to the company may not be optimistic about its future growth potential. This trend, combined with the significant overvaluation, may lead investors to approach Semtech with caution as they consider their investment strategies.
What This Means for InvestorsBased on the GF Value™ assessment, Semtech Corp is currently overvalued, with a significant disparity between its market price and intrinsic value. Investors should exercise caution given the high P/E ratio and the recent pattern of insider selling, which raises questions about the sustainability of the stock's recent gains. For more detailed information, you can visit the Semtech Corp SMTC stock page and explore additional metrics on the GF Value™ page.
Frequently Asked QuestionsWhat is SMTC's GF Score™?
Semtech's GF Score™ is 73/100, indicating that the company is above average in terms of its overall quality and performance metrics.
Is SMTC overvalued or undervalued?
SMTC is significantly overvalued with a current price of $162.62, which is 252.0% higher than the GF Value™ estimate of $46.20.
What is SMTC's P/E ratio?
SMTC's P/E ratio is 107.7x, which is substantially higher than its 5-year median of 35.6x, indicating that the stock is trading at a much higher valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
New 224G TIA and driver portfolio targets NPO and CPO architectures for AI clusters and hyperscale data centers
CAMARILLO, Calif.--(BUSINESS WIRE)--Semtech Corporation (Nasdaq: SMTC), a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected Internet of Things (“IoT”) devices worldwide, today introduced a family of 224G linear Transimpedance Amplifier (TIA) and driver solutions, designed to accelerate the deployment of Near-Packaged Optics (NPO) and Co-Packaged Optics (CPO) architectures for AI/ML clusters, hyperscale data centers and next-generation networking platforms.
As AI workloads continue to drive unprecedented demand for bandwidth and connectivity, traditional optical architectures face increasing challenges in power consumption, thermal management, signal integrity, and system density. By bringing high-performance optical interfaces closer to the switching and compute silicon, NPO and CPO architectures offer a path toward significantly higher bandwidth density and improved system-level efficiency.
“Near-packaged and co-packaged optics are entering their initial ramp in 2026, and the shift toward NPO and CPO architectures reflects a broader industry response to the power and scaling bottlenecks facing AI back-end networks,” said Sameh Boujelbene, vice president, data center switch and AI networks market research at Dell’Oro Group. “As hyperscalers move these architectures from trials to deployment, the underlying TIA and driver technology becomes a critical enabler of that transition.”
Designed for 224G Linear Optical Architectures
Semtech’s new products include the GN1838L and GN42T380, the industry’s first linear octal TIAs, and the GN42M380 linear octal Mach-Zehnder Modulator (MZM) driver, optimized for 1.6T, 3.2T, 6.4T, and 12.8T optical engines (OEs). The 224G TIA and driver portfolio optimizes for CEI-224G-Linear and Open CPX interfaces and linear architectures, with very strictly specified space and power dissipation requirements.
“AI infrastructure is fundamentally changing the requirements for optical connectivity,” said Amit Thakar, vice president, signal integrity product marketing at Semtech. “At 224G per lane, designers need more than bandwidth. They need signal integrity, power efficiency, flexibility, and system-level visibility. Our TIAs and driver solutions are purpose-built to give NPO and CPO developers the building blocks to scale optical I/O while addressing the power and density challenges of next-generation AI systems.”
Enabling NPO and CPO at Scale
The GN1838L TIA offers 500µm channel pitch and the GN42T380 offers a 375µm channel pitch, giving customers flexibility in OE design choices. These TIAs can be used in side-by-side configuration with the photonics integrated circuit (PIC) or placed directly on top of the PIC, giving customers maximum flexibility. Both TIAs include an Automatic Gain Control (AGC) stage and output driver featuring programmable Continuous Time Linear Equalization (CTLE) and support both Manual and Automatic Gain Control (MGC and AGC) modes. The bandwidth is optimized to achieve low peaking, low input referred noise (IRN), and good group delay with minimal distortion. The devices offer several programmable performance optimization features, including output equalization, and are designed to interface with a wide variety of optical input signals, while optimizing performance at the switch or ASIC input.
The GN42M380 driver offers 375µm channel pitch and supports a variety of modulators, including Silicon Photonics (SiPho), Indium Phosphide Mach-Zehnder Modulator (InP MZM) and Thin-Film Lithium Niobate (TFLN). The GN42M380 delivers low group delay and minimal Total Harmonic Distortion (THD), ensuring superior driver performance. Programmable Continuous Time Linear Equalization (CTLE) is included to help compensate for intersymbol interference (ISI) due to the input signal transmission path. It also offers flexible biasing, making it compatible with MZMs from various vendors. The driver output swing is configurable, and on-chip equalization enables precise tuning of electrical and optical performance.
The TIA and driver family integrates several diagnostics and performance tuning features that can be accessed through device pads and the I²C interface.
Availability
Contact Semtech for the availability of the GN1838L, GN42T380 and GN42M380 product family.
Customers and partners are invited to visit Semtech at Booth #11C52 during CIOE 2026, Sept. 9-11, in Shenzhen, China, to learn more about the portfolio and meet with Semtech’s technical experts.
Learn more at http://www.semtech.com/optical.
About Semtech
Semtech Corporation (Nasdaq: SMTC) is a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected IoT devices worldwide. Our global teams are committed to empowering solution architects and application developers to develop breakthrough products for the infrastructure, industrial and consumer markets. To learn more about Semtech technology, visit us at Semtech.com or follow us on LinkedIn or X.
Semtech and the Semtech logo are registered trademarks or service marks of Semtech Corporation or its subsidiaries. All other trademarks, service marks and trade names mentioned in this press release are the property of their respective owners.
CAMARILLO, Calif.--(BUSINESS WIRE)--Semtech Corporation (Nasdaq: SMTC), a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected Internet of Things (“IoT”) devices worldwide, today announced an industry-first chipset for 10G passive optical network (PON) optical line terminal (OLT) applications. As network operators globally begin scaling to 50G PON deployments, equipment vendors need to support multiple generations of PON technology—GP.
Semtech Corporation (Nasdaq: SMTC), a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected Internet of Things (“IoT”) devices worldwide, today introduced a family of 224G linear Transimpedance Amplifier (TIA) and driver solutions, designed to accelerate the deployment of Near-Packaged Optics (NPO) and Co-Packaged Optics (CPO) architectures for AI/ML clusters, hyperscale data centers and next-generation networking platforms.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260908403246/en/
Semtech's new 224G linear TIA and driver portfolio — the GN1838L, GN42T380 and GN42M380 — is designed to accelerate NPO and CPO architectures for AI/ML clusters and hyperscale data centers.
As AI workloads continue to drive unprecedented demand for bandwidth and connectivity, traditional optical architectures face increasing challenges in power consumption, thermal management, signal integrity, and system density. By bringing high-performance optical interfaces closer to the switching and compute silicon, NPO and CPO architectures offer a path toward significantly higher bandwidth density and improved system-level efficiency.
“Near-packaged and co-packaged optics are entering their initial ramp in 2026, and the shift toward NPO and CPO architectures reflects a broader industry response to the power and scaling bottlenecks facing AI back-end networks,” said Sameh Boujelbene, vice president, data center switch and AI networks market research at Dell’Oro Group. “As hyperscalers move these architectures from trials to deployment, the underlying TIA and driver technology becomes a critical enabler of that transition.”
Designed for 224G Linear Optical Architectures
Semtech’s new products include the GN1838L and GN42T380, the industry’s first linear octal TIAs, and the GN42M380 linear octal Mach-Zehnder Modulator (MZM) driver, optimized for 1.6T, 3.2T, 6.4T, and 12.8T optical engines (OEs). The 224G TIA and driver portfolio optimizes for CEI-224G-Linear and Open CPX interfaces and linear architectures, with very strictly specified space and power dissipation requirements.
“AI infrastructure is fundamentally changing the requirements for optical connectivity,” said Amit Thakar, vice president, signal integrity product marketing at Semtech. “At 224G per lane, designers need more than bandwidth. They need signal integrity, power efficiency, flexibility, and system-level visibility. Our TIAs and driver solutions are purpose-built to give NPO and CPO developers the building blocks to scale optical I/O while addressing the power and density challenges of next-generation AI systems.”
Enabling NPO and CPO at Scale
The GN1838L TIA offers 500µm channel pitch and the GN42T380 offers a 375µm channel pitch, giving customers flexibility in OE design choices. These TIAs can be used in side-by-side configuration with the photonics integrated circuit (PIC) or placed directly on top of the PIC, giving customers maximum flexibility. Both TIAs include an Automatic Gain Control (AGC) stage and output driver featuring programmable Continuous Time Linear Equalization (CTLE) and support both Manual and Automatic Gain Control (MGC and AGC) modes. The bandwidth is optimized to achieve low peaking, low input referred noise (IRN), and good group delay with minimal distortion. The devices offer several programmable performance optimization features, including output equalization, and are designed to interface with a wide variety of optical input signals, while optimizing performance at the switch or ASIC input.
The GN42M380 driver offers 375µm channel pitch and supports a variety of modulators, including Silicon Photonics (SiPho), Indium Phosphide Mach-Zehnder Modulator (InP MZM) and Thin-Film Lithium Niobate (TFLN). The GN42M380 delivers low group delay and minimal Total Harmonic Distortion (THD), ensuring superior driver performance. Programmable Continuous Time Linear Equalization (CTLE) is included to help compensate for intersymbol interference (ISI) due to the input signal transmission path. It also offers flexible biasing, making it compatible with MZMs from various vendors. The driver output swing is configurable, and on-chip equalization enables precise tuning of electrical and optical performance.
The TIA and driver family integrates several diagnostics and performance tuning features that can be accessed through device pads and the I²C interface.
Availability
Contact Semtech for the availability of the GN1838L, GN42T380 and GN42M380 product family.
Customers and partners are invited to visit Semtech at Booth #11C52 during CIOE 2026, Sept. 9-11, in Shenzhen, China, to learn more about the portfolio and meet with Semtech’s technical experts.
Learn more at http://www.semtech.com/optical.
About Semtech
Semtech Corporation (Nasdaq: SMTC) is a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected IoT devices worldwide. Our global teams are committed to empowering solution architects and application developers to develop breakthrough products for the infrastructure, industrial and consumer markets. To learn more about Semtech technology, visit us at Semtech.com or follow us on LinkedIn or X.
Semtech and the Semtech logo are registered trademarks or service marks of Semtech Corporation or its subsidiaries. All other trademarks, service marks and trade names mentioned in this press release are the property of their respective owners.
SMTC-P
View source version on businesswire.com: https://www.businesswire.com/news/home/20260908403246/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Semtech Corporation (Nasdaq: SMTC), a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected Internet of Things (“IoT”) devices worldwide, today announced an industry-first chipset for 10G passive optical network (PON) optical line terminal (OLT) applications.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260908772887/en/
Semtech's GN7153C OLT combo IC and GN28L46 burst-mode TIA form an integrated chipset for 10G PON OLT applications, supporting GPON, XGS-PON and 50G PON in a single SFP-DD module.
As network operators globally begin scaling to 50G PON deployments, equipment vendors need to support multiple generations of PON technology—GPON (2.5Gbps), XGS-PON (10Gbps) and 50G PON, all within a space-constrained SFP-DD module form factor. Furthermore, 50G OLT systems require high SFP-DD port density making module power a critical design priority.
The GN7153C OLT combo IC and GN28L46 burst-mode transimpedance amplifier (TIA) bring a new level of integration, low power and design flexibility to optical module manufacturers and broadband system vendors developing next-generation fiber broadband infrastructure.
The chipset pairs the GN7153C, a 10G PON OLT combo IC integrating a dual-rate burst-mode limiting amplifier and laser bias driver outputs, with the GN28L46, a high-sensitivity burst-mode TIA. Together, they form a tightly integrated solution for 10 gigabit symmetric passive optical network (XGS-PON) applications compliant with ITU-T G.9807.1 standards.
The GN7153C uses lower supply voltages to deliver up to 400mW of savings per port, across a fully populated 16-port optical line terminal, that aggregates to 6.5W of system-level power savings.
The GN28L46 has an accurate Received Signal Strength Indicator (RSSI) mirror, together with the burst-mode sample-and-hold circuit in the GN7153C, that improves accuracy and eliminates the need for standalone RSSI controllers, further reducing component count and BOM cost.
“The GN7153C enables module suppliers and system vendors to realize the promise of 50G PON infrastructure,” said Amit Thakar, vice president, signal integrity product marketing at Semtech. “By integrating the SOA driver, on-chip RSSI and dual TOSA bias driver outputs into a single device—and pairing it with the industry-leading sensitivity of the GN28L46 TIA—we are giving our customers the design flexibility and power efficiency they need to build the next generation of triple-gen optical line terminal modules.”
The GN7153C and GN28L46 chipset is currently available for sampling. Volume production is scheduled for September 2026.
Semtech will showcase the GN7153C and GN28L46 chipset at CIOE 2026, Sept. 9–11 in Shenzhen, China, at Booth #11C52.
Learn more at http://www.semtech.com/optical.
About Semtech
Semtech Corporation (Nasdaq: SMTC) is a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected IoT devices worldwide. Our global teams are committed to empowering solution architects and application developers to develop breakthrough products for the infrastructure, industrial and consumer markets. To learn more about Semtech technology, visit us at Semtech.com or follow us on LinkedIn or X.
Semtech and the Semtech logo are registered trademarks or service marks of Semtech Corporation or its subsidiaries. All other trademarks, service marks and trade names mentioned in this press release are the property of their respective owners.
SMTC-P
View source version on businesswire.com: https://www.businesswire.com/news/home/20260908772887/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
From a technical perspective, Semtech (SMTC - Free Report) is looking like an interesting pick, as it just reached a key level of support. SMTC recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
Over the past four weeks, SMTC has gained 10.4%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.
The bullish case solidifies once investors consider SMTC's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 6 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on SMTC for more gains in the near future.
After reaching an important support level, Semtech (SMTC - Free Report) could be a good stock pick from a technical perspective. SMTC surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Shares of SMTC have been moving higher over the past four weeks, up 10.4%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that SMTC could be poised for a continued surge.
Once investors consider SMTC's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 6 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on SMTC for more gains in the near future.
).So before I try to convince you to buy SMTC under $130 every chance you get, let's dive into the fundamental structure, function, and operation of this emerging powerhouse in the AI connectivity megatrend.
Primary Markets & Operating Segments
Semtech operates through three main reportable segments...
Signal Integrity (Infrastructure & Data Center): Offers high-speed optical transceivers, Transimpedance Amplifiers (TIAs), laser drivers, and active copper interconnects (FiberEdge and CopperEdge product lines).
This segment supports 800G, 1.6T, and 3.2T data center architectures, Linear Pluggable Optics (LPO), and Active Copper Cables (ACC) within scale-out AI clusters.
Analog Mixed Signal and Wireless (Protection & Sensing): Focuses on Transient Voltage Suppressor (TVS) arrays, Electrostatic Discharge (ESD) protection, proximity sensing controllers, and high-reliability power management chips.
IoT Systems and Connectivity (Wireless Networks): Built around Semtech's proprietary LoRa® (Long Range) wireless technology, enabling Low-Power Wide-Area Networks (LPWAN) across smart cities, industrial asset tracking, metering, and EdgeAI devices.
End-Market Distribution
Industrial Applications: ~55% of net sales
Infrastructure (Data Centers & Telecom): ~30% of net sales
High-End Consumer: ~15% of net sales
Business Growth & Financial Performance
Top-Line Expansion: Net sales reached $1.05 billion (up ~15% year-over-year).
Core Growth Drivers: Growth is propelled by data center revenue from AI cluster buildouts—driven by demand for 800G/1.6T optical transceivers and active copper solutions—alongside 15%–20% annual expansion in the LoRa ecosystem.
Portfolio Optimization: Semtech improved non-GAAP adjusted gross margins toward ~53% (and ~60% in semiconductor products) through strategic moves, including the divestiture of its lower-margin cellular module business and the targeted $34M acquisition of Indium Phosphide laser specialist HieFo Corporation to expand content per optical module.
Customers & Distribution
Concentration: Semtech relies on major global distributors and high-volume direct accounts. Two primary customers accounted for 14% and 11% of total net sales.
Geographic Mix: Greater China (including Hong Kong) represents ~47% of net sales, the U.S. accounts for 18%, and Taiwan accounts for 6%.
Target Account Profiles
Hyperscalers & Cloud Infrastructure: Major cloud service providers (AWS, Microsoft Azure, Google Cloud) and AI server OEMs via optical module suppliers.
Industrial & Telecom: Smart grid utilities, factory automation providers, and telecommunications operators deploying 5G infrastructure. Consumer OEMs: Top-tier mobile device and wearable OEMs incorporating ESD protection and proximity sensing ICs.
Strategic Partners & Ecosystem
Amazon Sidewalk: Semtech partnered with Amazon to integrate LoRa technology into the Amazon Sidewalk shared neighborhood network, driving consumer smart-home connectivity.
LoRa Alliance: Semtech serves as the foundational chip provider and core member of the LoRa Alliance, an open ecosystem of hundreds of global hardware manufacturers, software platforms, and telecom operators (e.g., Helium, Actility, Senate Technologies) standardization LPWAN deployments worldwide.
Optical & Copper Interconnect Ecosystem: Partners with leading optical transceiver manufacturers (such as Innolight, Eoptolink, and Coherent) and active cable makers to integrate Semtech's TIAs, laser drivers, and linear equalizers into multi-vendor AI network topologies.
Bottom line: SMTC was a bargain during the July "Leopold Leverage Liquidation" near $100, but I say you should be looking at more chances during the Fed-Iran-Midterms volatility of Sep-Oct under $130 -- and only 6X forward sales growing 40%. I know I am.
Disclosure: I own NVDA, LITE, COHR, and TSM shares for the Zacks TAZR Trader.
Shares of Semtech (SMTC - Free Report) have gained 11.3% over the past four weeks to close the last trading session at $131.17, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $205.2 indicates a potential upside of 56.4%.
The mean estimate comprises 15 short-term price targets with a standard deviation of $35.22. While the lowest estimate of $148.00 indicates a 12.8% increase from the current price level, the most optimistic analyst expects the stock to surge 128.7% to reach $300.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for SMTC, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in SMTCAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, five estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 45.4%.
Moreover, SMTC currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SMTC could gain, the direction of price movement it implies does appear to be a good guide.
Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.
Shareholders should contact the firm immediately as there may be limited time to enforce your rights.
, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Semtech Corporation (NASDAQ: SMTC) breached their fiduciary duties to shareholders.
If you currently own Semtech stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or [email protected] or [email protected].
Why Your Participation Matters:
Shareholder involvement can help improve a company's policies, practices, and oversight mechanisms to create a more transparent, accountable, and effectively managed organization, which can enhance shareholder value.
Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Contact Information:
Halper Sadeh LLC
One World Trade Center
85th Floor
New York, NY 10007
Daniel Sadeh, Esq.
Zachary Halper, Esq.
(212) 763-0060
[email protected]
[email protected]
https://www.halpersadeh.com
By Thomas Richmond · Updated Aug 25, 4:53pm ET · Published Aug 25, 3:14pm ET
Live UpdatesNewest first
That wraps up our initial coverage of Semtech’s Q2 results. Thank you for stopping by!
Semtech just reported earnings, with shares initially up 2% following the report. Here are the key numbers:
Revenue: $341.9 million vs. prior guidance of approximately $328 million Adjusted EPS: $0.71 vs. prior guidance of approximately $0.61 Adjusted Gross Margin: 54.5% Adjusted Operating Margin: 24.4% Guidance:
Revenue: $410 million, plus or minus $5 million Adjusted EPS: $1.05, plus or minus $0.03 Adjusted Gross Margin: 58.3%, plus or minus 100 basis points Adjusted Operating Margin: 31.0%, plus or minus 60 basis points Quick Read:
Semtech delivered record quarterly revenue, growing 33% year over year and exceeding its previous guidance, while adjusted EPS also came in well ahead of its outlook.
Accelerating bookings and record backlog support another major revenue increase in Q3, alongside sharp gross-margin and operating-margin expansion.
Tonight’s Q2 earnings report matters less than the Q3 outlook. Management has been conservative, beating its own guide in every recent quarter: versus a Q1 guide, and similar beats in the prior two periods.
Investors want a Q3 revenue guidance meaningfully above with EPS north of , adjusted gross margin holding above , and confident commentary on the ramp, data center bookings, and capacity expansion.
A bullish guidance would reinforce CEO Hong Hou’s call for accelerating data center growth and could unlock the analyst target. An in-line guidance, softer Signal Integrity, or cautious 1.6T timing would validate last week’s pullback.
Bull Case Data center acceleration: Management targets in Q2, with layering onto 800G strength. Beat streak: Semtech has posted , and Polymarket assigns a probability to another. Analyst conviction: , with a average target. Bear Case High bar: Guidance implies revenue growth; any softness could disappoint. GAAP quality: FY26 included in goodwill impairments. Insider selling: Net direction is across recent transactions. Volatile reactions: Shares dropped last week despite the AI narrative.
Semtech heads into tonight’s fiscal second-quarter report guiding for $328 million in revenue and adjusted EPS of about $0.61.
FiberEdge 800G deployments and initial 1.6T shipments make this quarter a proving ground for the company’s data-center acceleration story.
Shares fell 8% last week despite remaining up 136.66% over the past year. With an average analyst price target of $201.38 and Polymarket traders pricing a 73.5% probability of an earnings beat, guidance will carry more weight than the headline results.
Confident commentary around second-half 1.6T demand, capacity, and margins could send Semtech stock higher tonight.
Live coverage has ended. The full story is below.
Full CoverageThe story so far
Semtech (NASDAQ:SMTC) is expected to report Q2 FY27 earnings today at 4:05 PM ET. The connectivity chipmaker has become one of the year’s biggest AI-adjacent winners, with the stock up 144% in the past year.
Momentum Meets Execution Risk Q1 FY27 posted record revenue of $291.00 million, up 16% year over year, with adjusted diluted EPS of $0.51, up 34%. Signal Integrity revenue surged to $102.00 million from $73.50 million a year earlier, and data-center net sales hit a record $71.6 million, up 39% year over year.
Adjusted operating margin expanded to 20.4% from 19.0%, and free cash flow reached $28.00 million. SMTC trades near $125.83, up 64.08% YTD, though it gave back 21.6% in the past week alone as the AI-connectivity trade cooled.
Consensus and Guidance Metric Q2 FY27 Guide (Mid) Implied YoY FY27 Prior-Year Anchor Revenue $328.0M +27% FY26 rev $1.05B Adj. EPS $0.61 +49% FY26 EPS $1.71 Adj. Gross Margin 54.0% +100 bps vs Q1 Semi GM 62.1% Adj. Op. Margin 21.9% +150 bps vs Q1 Q1 20.4% What I’m Watching Tonight: Capacity, 1.6T Ramps, and LoRa’s Second Act Tonight, I’ll be watching four main things:
First, 1.6T monetization. Management called 800G FiberEdge the foundation of data-center growth and telegraphed initial 1.6T FRO shipments in Q2, with CopperEdge 1.6T already flowing to a US hyperscaler. Analysts will be looking for granularity on 1.6T mix and LPO or LRO qualification progress. Second, capacity. Hong Hou framed the environment bluntly, saying “This is a time capacity is king,” and Semtech is working to double or triple capacity with foundry and OSAT partners. GaN chip demand currently exceeds supply by about 3x. Third, LoRa. Management is targeting an all-time high with greater than 15% sequential LoRa growth in Q2, positioning LoRa Plus as an Edge AI enabler across smart utilities, buildings, and asset tracking. Fourth, operating leverage and portfolio moves. Q1 SG&A fell 200 basis points to 15.1% of sales while R&D climbed to 17.6%. Investors will be watching how the revenue mix absorbs the 1.6T ramp and whether the cellular-module divestiture reaches signing. Earnings History Quarter EPS Surprise 1-Day Move 1-Week Move 30-Day Move Q1 FY27 +12.48% -4.41% +1.32% -8.94% Q4 FY26 +2.02% -11.00% -14.02% +15.10% Q3 FY26 +7.87% +2.33% +2.34% +5.54% Q2 FY26 +2.17% -1.00% -1.35% +7.24% On average, shares moved 2.69% seven days after earnings over the past year.
Contact [email protected] for any questions or corrections.
Thomas Richmond
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.
Semtech’s Explosive Rally May Only Be Getting StartedSemtech NASDAQ: SMTC reported record fiscal second-quarter revenue and projected further growth in its data center, LoRa and consumer businesses, while advancing a planned divestiture of its cellular module operation.
For the quarter ended July 26, 2026, the company reported revenue of $342 million, up 17% sequentially and 33% from a year earlier. Adjusted diluted earnings per share were $0.71, up 39% sequentially and 73% year over year. President and CEO Hong Hou said the results reflected record revenue in the company’s key focus areas, growing operating leverage and progress in portfolio optimization.
Get Semtech alerts:
How Semtech’s Data Center Chips Are Powering the AI BoomAdjusted gross margin was 54.5%, an increase of 150 basis points from the prior quarter. Adjusted operating income totaled $84 million, while adjusted EBITDA was $91 million. Semtech generated operating cash flow of $69 million and free cash flow of $61 million during the quarter. It ended the period with $204 million in cash and cash equivalents, $503 million in principal debt and a net leverage ratio of 1.1.
Data Center Business Drives Infrastructure Growth Infrastructure revenue was $124 million, up 25% sequentially and 69% year over year, led by a record $100 million in data center revenue. Data center sales increased 39% from the prior quarter and 91% from a year earlier, supported by 800G products, 1.6T CopperEdge products and the initial ramp of 1.6T FiberEdge offerings.
Why Semtech Stock Is Rallying After Its NVIDIA SetbackHou said Semtech is seeing strong demand for FiberEdge transimpedance amplifier and driver solutions, along with broader customer engagement around emerging optical architectures including MPO and XPO. He said the company expects FiberEdge to exceed 50% market share in its targeted 1.6T market by the end of the fiscal year.
The company also said its CopperEdge linear equalizer products are in design-in phases for applications extending to 3.2T. Hou described the products as the “de facto industry standard” for linear equalizers and said volume deployment of active copper cable applications is expected to begin in the fourth quarter.
Semtech is expanding its photonics portfolio through gain chips, high-power continuous-wave lasers, semiconductor optical amplifiers and high-speed photodiodes. Hou said the company expects CW laser revenue from transceiver applications to begin in the first half of fiscal 2028. He also said the company expects 3.2T transceiver deployments to begin roughly two years from now, with design activity starting over the next 12 months.
To support demand, Semtech is pursuing additional front-end and back-end manufacturing capacity for fiscal 2028 and beyond. Hou said the company has sufficient near-term capacity to support customer ramps and some additional orders, but that current capacity commitments may not meet expected demand in the second half of fiscal 2028.
LoRa Posts Another Record Quarter Industrial revenue was $179 million, up 16% sequentially and 25% year over year. LoRa-enabled revenue reached a record $58 million, rising 31% sequentially and 58% from the prior-year period.
Hou said the company’s LoRa Gen 4 platform, which combines LoRa with other radio-frequency protocols, is gaining traction in smart-home, security and edge artificial-intelligence applications. Semtech said Gen 4 provides dual-band capability and data throughput of up to 2.6 megabits per second while maintaining low-power and long-range characteristics.
The company also cited growing adoption of LoRaWAN in public safety and industrial predictive-maintenance applications. Amazon Sidewalk is expanding internationally following Ring’s launch of LoRa-based sensors in the U.S., with Canada and Mexico next and Europe, Australia and Japan expected to follow, according to Semtech.
For the third quarter, Semtech expects LoRa revenue to rise about 15% sequentially and approximately 65% year over year. During the question-and-answer session, Hou said the company now expects LoRa’s year-over-year growth rate to remain above its prior 20% benchmark.
Cellular Module Sale Reshapes Margin Profile Semtech announced a definitive agreement to divest its cellular module business, which was classified as held for sale on the second-quarter balance sheet. The company expects the deal to close during the fourth quarter of the current fiscal year and to be non-GAAP EPS neutral.
Chief Financial Officer Mark Lin said adjusted gross margin excluding the cellular module business was 59.7% in the second quarter, or 520 basis points above the consolidated figure. He said the divestiture is expected to create a structural margin improvement of more than 500 basis points.
“We see this as a continuous journey,” Hou said of portfolio optimization, adding that the company will continue evaluating its portfolio after completing the cellular module transaction.
Third-Quarter Outlook Calls for Accelerating Growth Semtech forecast third-quarter revenue of $410 million, plus or minus $5 million. At the midpoint, that would represent 20% sequential growth and 54% year-over-year growth. The company expects growth in each of its operating segments.
Data center revenue is expected to increase 45% sequentially and 160% year over year. Adjusted gross margin is projected at 58.3%, plus or minus 100 basis points. Adjusted gross margin excluding the cellular module business is expected to be 63.9% at the midpoint. Adjusted operating margin is forecast at 31% at the midpoint. Adjusted EBITDA is expected to be $134 million, plus or minus $4 million. Adjusted diluted EPS is forecast at $1.05, plus or minus $0.03. Semtech plans to provide a longer-term financial framework and additional information on its technology roadmap, addressable markets and growth strategy at an investor event in San Jose on Oct. 15.
About Semtech (NASDAQ:SMTC)Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company's products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech's portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.
A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Should You Invest $1,000 in Semtech Right Now?Before you consider Semtech, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Semtech wasn't on the list.
While Semtech currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat just released its list of the 7 hottest IPOs expected to hit Wall Street in 2026. See which companies are preparing to go public and why investors are watching closely.
Semtech (SMTC - Free Report) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +14.52%. A quarter ago, it was expected that this chipmaker would post earnings of $0.45 per share when it actually produced earnings of $0.51, delivering a surprise of +13.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Semtech, which belongs to the Zacks Semiconductor - Analog and Mixed industry, posted revenues of $341.9 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 4.12%. This compares to year-ago revenues of $257.6 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Semtech shares have added about 64.1% since the beginning of the year versus the S&P 500's gain of 11.8%.
What's Next for Semtech?While Semtech has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Semtech was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.73 on $357.07 million in revenues for the coming quarter and $2.66 on $1.36 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductor - Analog and Mixed is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Computer and Technology sector, Credo Technology Group Holding Ltd. (CRDO - Free Report) , is yet to report results for the quarter ended July 2026. The results are expected to be released on September 1.
This company is expected to post quarterly earnings of $1.16 per share in its upcoming report, which represents a year-over-year change of +123.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Credo Technology Group Holding Ltd.'s revenues are expected to be $470.73 million, up 111% from the year-ago quarter.
For the quarter ended July 2026, Semtech (SMTC - Free Report) reported revenue of $341.9 million, up 32.7% over the same period last year. EPS came in at $0.71, compared to $0.41 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $328.37 million, representing a surprise of +4.12%. The company delivered an EPS surprise of +14.52%, with the consensus EPS estimate being $0.62.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Semtech performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales by major end markets- High-End Consumer: $39.3 million versus $39.96 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -4.6% change.Net Sales by major end markets- Industrial: $178.9 million versus $170.55 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +25.1% change.Net Sales by major end markets- Infrastructure: $123.7 million versus $118.29 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +68.6% change.Net Sales by reportable segment- Signal Integrity: $126.2 million compared to the $125.46 million average estimate based on two analysts. The reported number represents a change of +64.3% year over year.Net Sales by reportable segment- Analog Mixed Signal and Wireless: $117.4 million compared to the $109.99 million average estimate based on two analysts. The reported number represents a change of +27.6% year over year.Net Sales by reportable segment- IoT Systems and Connectivity: $98.3 million versus $92.71 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +10.7% change.View all Key Company Metrics for Semtech here>>>
Shares of Semtech have returned -0.5% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Semtech delivered a strong quarter with 32.7% y/y revenue growth and a double beat on both revenue and EPS. SMTC's data center segment, fueled by AI infrastructure demand, drove 91% y/y growth and is expected to remain the primary revenue engine. Guidance for next quarter implies 20% sequential and 54% y/y revenue growth, with management projecting accelerating momentum into fiscal 2028.
U.S. stocks were mixed, with the Nasdaq Composite gaining around 0.1% on Wednesday.
Shares of Abercrombie & Fitch Co (NYSE:ANF) rose sharply after the company reported better-than-expected second-quarter financial results and raised its FY26 guidance above estimates.
Abercrombie reported earnings of $4.17 per diluted share, beating the analyst consensus estimate of $1.99. Adjusted earnings rose from $2.32 per share a year earlier. Net sales increased 5% to $1.267 billion from $1.209 billion. That topped the $1.248 billion estimate and marked the company’s 15th consecutive quarter of sales growth. Comparable sales were flat.
Abercrombie raised its fiscal 2026 earnings forecast to $13.10 to $13.60 per share from $10.20 to $11. Analysts expect $10.71. The company now expects net sales of about $5.529 billion, above its previous range of $5.424 billion to $5.529 billion and the $5.464 billion estimate.
Abercrombie & Fitch shares jumped 31.6% to $143.40 on Wednesday.
Here are some other big stocks recording gains in today’s session.
Kanzhun Ltd (NASDAQ:BZ) shares surged 15.5% to $18.82. Kanzhun, on Tuesday, reported better-than-expected quarterly EPS results.Capricor Therapeutics Inc (NASDAQ:CAPR) gained 13% to $9.37.Semtech Corp (NASDAQ:SMTC) gained 12.1% to $142.99 after the company reported better-than-expected second-quarter financial results and issued third-quarter guidance above estimates.NIP Group Inc (NASDAQ:NIPG) gained 10.6% to $18.87.Zymeworks Inc (NASDAQ:ZYME) climbed 10.3% to $30.29. HC Wainwright & Co. analyst Robert Burns maintained the stock with a Buy and raised the price target from $51 to $55.Trending
Summit Therapeutics Inc (NASDAQ:SMMT) rose 9.4% to $14.62 after the company announced topline results from the randomized Phase III HARMONi-GI1 study met the key secondary endpoints of progression-free survival and objective response rate.TTM Technologies Inc (NASDAQ:TTMI) gained 9.3% to $122.80.Webtoon Entertainment Inc (NASDAQ:WBTN) gained 8.8% to $10.29.Acadia Healthcare Company Inc (NASDAQ:ACHC) shares surged 7.3% to $32.05.Comstock Resources Inc (NYSE:CRK) gained 6.5% to $15.09.Alignment Healthcare Inc (NASDAQ:ALHC) rose 6.1% to $14.42.American Eagle Outfitters Inc (NYSE:AEO) gained 5.3% to $17.62. AEO will report second quarter fiscal 2026 results on Sept. 9.Gap Inc (NYSE:GAP) gained 5% to $21.16. Gap will release quarterly earnings on Thursday, Aug. 27.Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Key Takeaways Semtech's Q2 revenues rose 32.7% year over year to $341.9 million, topping estimates by 4.1%.Infrastructure sales rose 69% as 800G strength and early 1.6T FiberEdge and CopperEdge ramps supported growth.Semtech expects Q3 sales of $410 million and non-GAAP EPS of $1.05, both above consensus estimates. Semtech Corporation (SMTC - Free Report) shares gained 4% during Tuesday’s extended trading session after the company reported better-than-expected second-quarter fiscal 2027 results.
Semtech posted non-GAAP earnings of 71 cents per share, which beat the Zacks Consensus Estimate by 14.5%. The bottom line exceeded management’s guidance of 61 cents (+/-2 cents) and reflected a robust year-over-year improvement of approximately 73.2%.
Semtech beat on earnings in each of the trailing four quarters, the average surprise being 9.8%.
SMTC’s second-quarter fiscal 2027 revenues of $341.9 million topped the Zacks Consensus Estimate by 4.1% and came above management’s guidance of $328 million (+/- $5 million). The top line jumped 32.7% year over year.
Semtech’s Q2 Revenues in Terms of End MarketsSales from the infrastructure market totaled $123.7 million (36.2% of net sales), exhibiting year-over-year growth of 69%, supported by the expanding data center business. The increase reflected continued strength in 800G products and the early ramp of 1.6T FiberEdge and CopperEdge solutions.
Sales from the industrial market amounted to $178.9 million (52.3% of net sales), up 25.1% year over year.
Sales from the high-end consumer market totaled $39.2 million (11.5% of net sales), down 4.6% year over year.
SMTC’s Q2 Revenues in Terms of Product LinesSignal Integrity (36.9% of net sales) sales totaled $126.2 million, up 64.3% year over year.
Analog Mixed Signal & Wireless (34.3% of net sales) sales amounted to $117.4 million, which rose 27.6% year over year.
IoT System and Connectivity (28.8% of net sales) sales totaled $98.3 million, up 10.7% on a year-over-year basis.
Semtech Builds Data Center and LoRa MomentumFiberEdge demand remained strong across leading hyperscalers, and Semtech said it is designed into every major module provider in its target markets. The company expects 1.6T FiberEdge market share to exceed 50% by the end of fiscal 2027 and is engaged in CopperEdge design-ins at bandwidths up to 3.2T.
LoRa-enabled sales set another record at $58 million, up 58% year over year. The company cited expansion across smart utilities, buildings, cities and asset management, while Amazon Sidewalk is expanding internationally after Ring's U.S. launch of LoRa-based sensors. Semtech is also expanding photonics capacity, with high-power CW laser revenues expected to begin in the first half of fiscal 2028.
Semtech’s Margins in DetailsThe non-GAAP gross margin of 54.5% expanded 130 basis points (bps) on a year-over-year basis and 150 bps sequentially.
Non-GAAP operating income increased 72% year over year to $83.6 million. The non-GAAP operating margin expanded to 24.4% from 18.8% reported in the year-ago quarter. On a quarter-over-quarter basis, non-GAAP operating income increased 41%, while margin expanded 400 basis points.
Semtech’s Balance Sheet & Cash FlowAs of July 26, 2026, cash and cash equivalents totaled $204.1 million, up from $163.3 million as of April 26, 2026.
The long-term debt amounted to $394.4 million, down from the previous quarter’s reported figure of $492 million.
During the second quarter, Semtech generated operating cash flow and free cash flow of $68.9 million and $61.4 million, respectively.
Semtech Initiates Q3 FY27 GuidanceFor the third quarter of fiscal 2027, Semtech expects net sales to be $410 million (+/- $5 million). The Zacks Consensus Estimate is pegged at $357.1 million, indicating a year-over-year rise of 33.7%.
The non-GAAP gross margin is expected to be 58.3% (+/- 100 bps). The non-GAAP operating margin is anticipated to be 31% (+/- 60 bps).
Non-GAAP earnings are expected to be $1.05 (+/- 3 cents) per share. The consensus mark for earnings is pegged at 73 cents per share, indicating a year-over-year rise of 52.1%.
SMTC’s Zacks Rank and Other Stocks to ConsiderCurrently, Semtech carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Lam Research (LRCX - Free Report) and NVIDIA (NVDA - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.73 per share, up 8 cents over the past seven days, indicating a year-over-year surge of 35.1%. Applied Materials shares have surged 86.7% year to date (YTD).
The Zacks Consensus Estimate for Lam Research’s fiscal 2027 earnings has moved northward by 17.8% to $9.32 per share over the past 30 days and calls for a year-over-year jump of 60.4%. Lam Research shares have soared 83.8% YTD.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 earnings has moved upward by 2 cents to $8.92 per share in the past seven days, implying a year-over-year increase of 87%. NVIDIA shares have risen 14.6% YTD.
Key Takeaways Semtech's data center revenues hit a record $100 million as 1.6T FiberEdge began ramping up.Semtech expects Q3 data center revenue to rise 45% sequentially and about 160% year over year.Semtech says fiscal 2028 demand may exceed capacity, while its divestiture adds 500 bps to margins. Semtech Corporation (SMTC - Free Report) used its fiscal second-quarter 2027 earnings call to emphasize a sharper data center inflection, with management pointing to 1.6T adoption, record backlog and rising capacity needs into fiscal 2028.
The call also highlighted a structural margin reset from the planned cellular module divestiture, while LoRa remained another growth engine.
SMTC Sees Data Center Growth AcceleratingAdjusted earnings were 71 cents per share, which topped the Zacks Consensus Estimate of 62 cents. Revenues of $341.9 million exceeded the $328.4 million estimate.
Semtech Corporation Price, Consensus and EPS Surprise
President and CEO Hong Hou said data center revenues reached a record $100 million, up 39% sequentially and 91% year over year, supported by 800-gig strength and the start of the 1.6T FiberEdge ramp.
Executive vice president and CFO Mark Lin guided third-quarter net sales to $410 million, plus or minus $5 million, up 20% sequentially and 54% year over year at the midpoint. Hou expects data center revenues to rise 45% sequentially and about 160% year over year.
Semtech Expands 1.6T OpportunityPresident and CEO Hong Hou said 1.6T FiberEdge should exceed 50% market share by fiscal year-end, while CopperEdge linear equalizers already command what management described as the lion's share of that market.
Semtech is broadening its photonics portfolio into gain chips, high-power continuous-wave lasers, semiconductor optical amplifiers and photodiodes. Hou said content per transceiver could rise from high-single-digit dollars to high-double-digit dollars as the industry moves toward 3.2T.
In Q&A, a BMO Capital Markets analyst asked about 3.2T timing. Hou said the design window should open in about 12 months, with early deployments around 18 months and meaningful deployment in roughly two years.
SMTC Moves Early on CapacityPresident and CEO Hong Hou said near-term capacity is sufficient for current ramps, but bookings indicate existing capacity may not cover fiscal 2028 demand, particularly in the second half.
Management is working with front-end and back-end manufacturing partners to add testers, qualify additional partners and secure greater capacity. Hou said prepayments and capital support are among the options under consideration.
A Benchmark analyst asked about backlog visibility. Hou said the company's remaining fiscal-year target is fully booked and Semtech is probably more than 70% booked for the next fiscal year.
Semtech Sees Structural Margin ResetExecutive vice president and CFO Mark Lin said adjusted gross margin reached 54.5% in the second quarter, while the figure excluding the held-for-sale cellular module business was 59.7%.
For the third quarter, Lin guided adjusted gross margin to 58.3%, plus or minus 100 basis points, and 63.9% excluding cellular modules. He described roughly 64% as a useful post-divestiture starting point.
A TD Cowen analyst pressed management on margin durability. Lin said the divestiture creates more than 500 basis points of structural improvement, while favorable data center and LoRa mix provide additional support.
SMTC Keeps LoRa Growth ElevatedPresident and CEO Hong Hou said LoRa-enabled sales reached a record $58 million, up 31% sequentially and 58% year over year.
Hou expects third-quarter LoRa revenues to rise about 15% sequentially and 65% year over year. LoRa Plus accounts for about 20% to 25% of the mix, while Amazon Sidewalk remains a smaller contributor this year.
An Oppenheimer analyst asked whether the prior 20% growth benchmark still applied. Hou said year-over-year growth should remain above 20% going forward, supported by LoRaWAN, LoRa Plus and Sidewalk expansion.
Semtech Sharpens Portfolio PrioritiesPresident and CEO Hong Hou described the cellular module divestiture as part of an ongoing portfolio optimization effort. Executive vice president and CFO Mark Lin said the transaction is expected to be closed in the fourth quarter of fiscal 2027 and be neutral to non-GAAP earnings per share.
Management's broader focus remains on securing capacity, increasing R&D investment and concentrating resources on higher-growth businesses. The October investor event is expected to provide multiyear financial targets and additional data center detail.
Zacks Signals for SMTCSMTC currently carries a Zacks Rank #2 (Buy), accompanied by a Value Score of F, a Growth Score of A and a Momentum Score of A. Its VGM Score is C. Under the Zacks framework, the strong Growth and Momentum scores indicate favorable characteristics in those styles, while the Value Score points to a comparatively weaker valuation profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Rank #2 provides a positive estimate-revision signal, while the C VGM Score reflects a more balanced combined assessment across value, growth and momentum than the individual Growth and Momentum scores alone. Zacks generally views A or B Style Scores as the strongest complements to top-ranked stocks. The Zacks Rank can change as analysts revise their earnings estimates following the newly reported results.
Semtech Corp (NASDAQ:SMTC) on Tuesday reported better-than-expected second-quarter financial results and issued third-quarter guidance above estimates.
Semtech reported quarterly earnings of 71 cents per share which beat the analyst consensus estimate of 57 cents per share. The company reported quarterly sales of $341.900 million which beat the analyst consensus estimate of $328.611 million.
Semtech said it sees third-quarter adjusted EPS of $1.02-$1.08, versus market estimates of 61 cents per share. The company sees sales of $405.000 million-$415.000 million, versus expectations of $324.458 million.
“The Semtech team executed exceptionally well, delivering record revenue across our key focus areas, earnings leverage that continued to outpace revenue growth and significant progress on portfolio optimization,” said Hong Hou, president and CEO. “Accelerating bookings and record backlog point to a strong inflection in growth with new revenue drivers and visibility expected to extend well into next fiscal year. Growing our focus areas and expanding margins all serve the same goal: building a predictable, high-margin and high-return business.”
Semtech shares jumped 7.8% to trade at $137.64 on Wednesday.
These analysts made changes to their price targets on Semtech following earnings announcement.
UBS analyst Timothy Arcuri maintained the stock with a Buy and raised the price target from $225 to $230. Needham analyst N. Quinn Bolton reiterated the stock with a Buy and maintained a $200 price target. Trending
Considering buying SMTC stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Atreides Management LP acquired a new stake in Semtech Corporation (NASDAQ:SMTC – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 551,214 shares of the semiconductor company’s stock, valued at approximately $89,214,000. Semtech comprises approximately 0.6% of Atreides Management LP’s holdings, making the stock its 21st largest position. Atreides Management LP owned approximately 0.59% of Semtech at the end of the most recent quarter.
Several other large investors also recently modified their holdings of SMTC. Leonteq Securities AG increased its holdings in Semtech by 11.2% during the 1st quarter. Leonteq Securities AG now owns 1,171 shares of the semiconductor company’s stock worth $90,000 after purchasing an additional 118 shares during the last quarter. Stephens Inc. AR raised its holdings in Semtech by 3.3% in the fourth quarter. Stephens Inc. AR now owns 4,410 shares of the semiconductor company’s stock valued at $325,000 after acquiring an additional 142 shares in the last quarter. ABS Investment Management LLC bought a new position in Semtech during the 2nd quarter valued at $178,035,000. Captrust Financial Advisors boosted its stake in Semtech by 0.8% during the 4th quarter. Captrust Financial Advisors now owns 19,302 shares of the semiconductor company’s stock valued at $1,422,000 after acquiring an additional 162 shares during the last quarter. Finally, Cetera Investment Advisers grew its holdings in Semtech by 1.5% during the 4th quarter. Cetera Investment Advisers now owns 11,737 shares of the semiconductor company’s stock worth $865,000 after acquiring an additional 177 shares in the last quarter.
Wall Street Analyst Weigh In A number of research firms recently commented on SMTC. Benchmark reiterated a “buy” rating on shares of Semtech in a research note on Thursday, August 20th. TD Cowen upped their price objective on Semtech from $210.00 to $215.00 and gave the company a “buy” rating in a research note on Monday, June 22nd. Zacks Research downgraded Semtech from a “strong-buy” rating to a “hold” rating in a report on Friday, August 21st. Oppenheimer set a $200.00 target price on Semtech in a research report on Wednesday, May 27th. Finally, B. Riley Financial lifted their target price on Semtech from $165.00 to $210.00 and gave the stock a “buy” rating in a research report on Wednesday, May 27th. Fourteen research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $201.44.
Get Our Latest Report on Semtech Semtech Price Performance NASDAQ SMTC opened at $140.80 on Thursday. The company has a 50-day moving average price of $135.94 and a two-hundred day moving average price of $118.62. Semtech Corporation has a 52 week low of $55.18 and a 52 week high of $177.35. The stock has a market cap of $13.12 billion, a price-to-earnings ratio of 93.25 and a beta of 2.35. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86.
Semtech (NASDAQ:SMTC – Get Free Report) last released its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. The company had revenue of $341.87 million for the quarter, compared to analysts’ expectations of $328.67 million. Semtech had a return on equity of 23.54% and a net margin of 13.11%.The business’s revenue for the quarter was up 32.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.41 earnings per share. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Analysts forecast that Semtech Corporation will post 1.81 EPS for the current year.
Key Stories Impacting Semtech Here are the key news stories impacting Semtech this week:
Positive Sentiment: Quarterly results beat expectations. Fiscal Q2 revenue rose 32.7% year over year to $341.9 million, exceeding the $328.7 million consensus estimate, while adjusted EPS of $0.71 topped expectations near $0.61 and increased from $0.41 a year earlier. Semtech Announces Second Quarter of Fiscal Year 2027 Results Positive Sentiment: Outlook substantially exceeded consensus. Semtech forecast fiscal Q3 revenue of approximately $410 million, compared with analysts’ expectations of about $359 million, and adjusted diluted EPS of roughly $1.05 versus consensus near $0.69. The guidance implies continued sequential growth and supported the stock’s advance. Semtech Dumps Cellular Business to Double Down on Data Centers Positive Sentiment: Data-center momentum is strengthening. Management highlighted a 1.6-terabit data-center product ramp, record backlog and a 91% increase in data-center sales, benefiting from AI infrastructure demand. Capacity expansion and tight GaN supply could support additional growth. SMTC Q2 Earnings Call Spotlights 1.6T Data Center Growth Positive Sentiment: Analyst sentiment improved. Multiple analysts raised their price targets following the earnings report, while Needham and Susquehanna reiterated Buy ratings with targets of $200 and $200–$215. Increased call-option activity also reflects bullish near-term positioning. Analysts Revise Forecasts After Upbeat Q2 Results Neutral Sentiment: Semtech’s planned cellular-business divestiture is intended to concentrate resources on data centers and create a structural margin benefit, though execution and the timing of the portfolio transition remain important risks. Negative Sentiment: Some recent disclosures show substantial insider selling, with executives reporting sales but no purchases over the past six months. The company also continues to post a negative GAAP net margin, factors that may temper enthusiasm despite the stronger outlook. Insider Transactions at Semtech In other news, Director Paul V. Walsh, Jr. sold 500 shares of the stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $164.99, for a total value of $82,495.00. Following the completion of the transaction, the director owned 28,100 shares of the company’s stock, valued at approximately $4,636,219. This represents a 1.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of the firm’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $133.00, for a total value of $266,000.00. Following the transaction, the chief executive officer directly owned 64,799 shares in the company, valued at $8,618,267. This trade represents a 2.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 21,734 shares of company stock worth $3,133,986 over the last quarter. Insiders own 0.44% of the company’s stock.
Semtech Profile (Free Report)
Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.
A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.
Recommended Stories Five stocks we like better than Semtech Williams-Sonoma’s Quarter Gave Bulls More Than Just a Beat-and-Raise Alcoa’s Gallium Project Opens a New Door Beyond Aluminum Oura’s $16 Billion IPO Could Put a New Price on Wearable Tech Can Tesla’s Flying Roadster Distract From Its Real Risks? Want to see what other hedge funds are holding SMTC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Semtech Corporation (NASDAQ:SMTC – Free Report).
Receive News & Ratings for Semtech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Semtech and related companies with MarketBeat.com's FREE daily email newsletter.
Here Are Thursday’s Top Wall Street Analyst Research Calls: Autoliv, CoreWeave, Corning, Dicks Sporting Goods, Federated Hermes, Gitlab, PayPal, Pfizer, Okta, and More Pre-Market Stock Futures: The futures are trading modestly higher after a wild Wednesday that saw the Nasdaq explode higher to close at an all-time high of 24,016, up a hefty 1.60%, while the S&P…
Lee Jackson · 5 months ago
Here Are Wednesday’s Top Wall Street Analyst Research Calls: The Gap, Genmab, Hilton Worldwide, Intuitive Surgical, Marriott International, Merck, Novo Nordisk, Okta, and More With all eyes locked on this morning's CPI release and the Strait of Hormuz nearly shut down, Wall Street analysts are already repositioning across hospitality, pharma, and tech before the market even opens.
Lee Jackson · 3 weeks ago
Here Are Tuesday’s Top Wall Street Analyst Research Calls: Albemarle, Booz Allen Hamilton, Cigna, DT Midstream, GE Vernova, Intel, Okta, Travelers, Occidental Petroleum, and More Pre-Market Stock Futures: Futures are trading higher as investors return to a holiday-shortened trading week after a record-setting Friday, when the S&P 500, which posted its eighth straight weekly gain, and the Dow Jones…
Lee Jackson · 3 months ago
Here Are Friday’s Top Wall Street Analyst Research Calls: Broadcom, Equifax, Hubbell, Marvell Technology, NVIDIA, SpaceX, Portland General Electric, Taylor Devices, Teradyne, and More Markets are clawing back from a brutal Thursday selloff, but the real action is in the analyst calls, where BMO Capital just pulled the trigger on three major chip stocks at once and DZ…
Lee Jackson · 1 week ago
Here Are Wednesday’s Top Wall Street Analyst Research Calls: Atlassian, Dick’s Sporting Goods, EPAM Systems, GoDaddy, Intuit, Jersey Mike’s Subs, JFrog, Lattice Semiconductor, and More Wall Street analysts are reshuffling their bets ahead of a critical inflation report and NVIDIA earnings that could jolt markets in either direction. Find out which names got upgraded, cut, or newly covered before…
Lee Jackson · 4 days ago
Here Are Monday’s Top Wall Street Analyst Research Calls: Apple, Dave, Etsy, Federal Signal, Mobileye Global, Netskope, Okta, Shopify, Workday, and More Wall Street kicked off the week with a flurry of bold calls on some of the market's most closely watched names, and at least one stock just scored a target price hike of more…
Lee Jackson · 2 weeks ago
Here Are Monday’s Top Wall Street Analyst Research Calls: BP, Charles Schwab, Fervo Energy, HubSpot, Lumentum, Microsoft, Netflix, Oracle, ServiceNow, Yeti Holdings, and More Wall Street kicked off the week with a flurry of analyst calls spanning energy, tech, and consumer names, and not everyone got good news. Find out which stocks earned fresh upgrades and which ones…
Three forces are set to push Semtech Corporation’s NASDAQ: SMTC uptrend higher: accelerating results, raised guidance, and an improving analyst outlook.
Bullish stock price action, triggered by the company's Q2 release, confirms that a bottom is in place. With these factors in play, it's only a matter of time before the market regains traction and advances, and the upside potential is robust.
Semtech Today
$131.17 -11.26 (-7.91%)
As of 08/28/2026 04:00 PM Eastern
$55.18▼
$177.3586.87
$204.71
MarketBeat’s consensus analyst estimate is just over $200, forecasting approximately 45% upside. Initial reactions from analysts following the release included gushing praise for the results and guidance, along with a reaffirmed price target from Needham that aligns with the consensus estimate.
Get Semtech alerts:
Analysts also highlighted the company’s turnaround efforts, which focus on AI and data center business alongside improving profitability and the potential for sustainable growth.
Why is Semtech important for AI? It makes the connections for scale-out and scale-up solutions, linking GPUs and CPUs into clusters, clusters into racks, and racks into data center supercomputers.
Semtech Outperforms in Q2, Raises Guidance to Wow LevelSemtech had a solid Q2, accelerating revenue growth sequentially and year over year to over 32.5%. More importantly, the company outperformed the analysts' high bar by over 400 basis points.
Segmentally, Infrastructure grew by 69%, driven by a 39% gain in Data Center and a 64% increase in Signal Integrity. High-End Consumer was weakest at -5%, offset by a 25% increase in Industrial. Core products include optical and high-speed copper connectivity solutions.
Margin is a key driver of stock price action. The company leveraged wider margins across the board due to increased revenue leverage and higher-margin business. Key takeaways include a 560 basis point (bps) increase in adjusted operating margin and a 73% increase in adjusted earnings (EPS). Adjusted EPS of 71 cents also beat consensus by more than 1,000 basis points and led to a substantial guidance improvement.
Guidance reflects an inflection for this business. Revenue growth is accelerating and outperforming high expectations, and the guidance shows unexpected strength, driven by its most advanced products. The company forecasts a midpoint of $410 million in revenue and $1.05 in adjusted EPS, both well above consensus and likely to be conservative. The company’s products are clearly in demand, with new products launching this half, setting the stage for sustained strength well into next year.
Debt Reduction Provides Lift for SMTC SharesSemtech still carries debt and has work to do on its balance sheet, but its Q2 results reflect progress. Balance sheet highlights include improved cash and assets compounded by reduced long-term debt and total liabilities, resulting in a substantial increase in equity. Equity, the measure of shareholder value, increased by more than 35% year to date and is likely to continue improving as the year progresses. In this scenario, the company's capacity for capital returns will continue to improve as it invests in its business shift and growth. No buybacks are expected soon, but they may resume in 2027 after additional debt reduction.
Heavy Institutional Buying Builds a Launch Pad for SMTCMarketBeat’s institutional data reveals solid support from that vector. The group owns more than 99% of the stock and is aggressively accumulating shares. The trailing 12-month balance of accumulation is about $5 to $1, with most buying in early Q3 ahead of the earnings report, foreshadowing the strong release. The likely outcome is that the group will continue to provide support and a launch pad from which price action can advance this fall.
Execution Risks and Catalysts Frame Semtech's Path ForwardSemtech’s biggest risks are execution and capacity constraints. The company has indicated that capacity could fall short of demand sometime in 2028, making execution critical. New equipment and cleanroom space are being converted into manufacturing capacity and are expected to come online over the next few quarters. The question is the timing and whether production can ramp in time to meet demand for next-generation products, which is why short-sellers remain a risk. Short interest isn’t prohibitively high at 7%, but it's high enough to weigh on the stock and keep volatility elevated.
Catalysts include Semtech's expected divestiture of its cellular module business. As a small component of the network, the business's sale will have a negligible impact on earnings but will significantly widen gross margin and inject incremental cash. The net result will be a sharper focus on high-conviction business lines and a leaner balance sheet. Long-term, the company’s exposure in edge and IoT sets it up for sustained strength as the AI industry shifts toward physical AI. Physical AI is the endgame, with autonomous machines from cars to robots active in daily life.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Should You Invest $1,000 in Semtech Right Now?Before you consider Semtech, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Semtech wasn't on the list.
While Semtech currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI boom extends far beyond the biggest tech names. Discover 10 companies supplying the memory, storage, networking, semiconductor manufacturing, and power infrastructure that make AI possible. Learn where the next wave of AI investment opportunities may emerge—and the key risks investors should watch as the global AI buildout accelerates.
IT hardware maker Semtech (SMTC -7.91%) has been cruising higher over the past few days, thanks in no small part to an investor-pleasing quarterly earnings report it published on Tuesday. As of mid-evening Thursday, its stock price was up by nearly 15%, according to data compiled by S&P Global Market Intelligence.
A solid second frame Semtech's second quarter of fiscal 2027 featured record net sales of just under $342 million, up a robust 33% year over year. Net income not under generally accepted accounting principles (non-GAAP, or adjusted) surged higher, rising 89% to $69.5 million, or $0.71 per share.
Image source: Getty Images.
Both headline figures were comfortably above the average analyst estimates of nearly $329 million for net sales and adjusted earnings per share (EPS) of $0.61.
In its earnings release, Semtech said revenue rose in all of its key focus areas, and portfolio optimization also helped boost the bottom line. It added that robust growth in bookings also helped, and its backlog hit a new all-time high.
Premium Feature
Moneyball Superscore
70/100
Today's Change
(
-7.91
%) $
-11.26
Current Price
$
131.17
An accelerating growth engine Semtech also proffered guidance for its current (third) quarter. The company believes net sales for the period will be $405 million to $415 million, representing at least 52% year-over-year growth. Adjusted EPS should land at $1.02 to $1.08; even at the low end, this would be more than double third quarter 2026's $0.43.
Given the strong trailing results and the expected accelerating growth, it's little wonder that investors have been hot on Semtech stock since the earnings release.
Like other component makers benefiting from the intense build-out of artificial intelligence (AI) compute capacity, the company is well-positioned to reap the rewards. Unlike some of those peers, it clearly knows how to take good advantage of this.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Archer Investment Corp purchased a new position in Semtech Corporation (NASDAQ:SMTC – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 4,786 shares of the semiconductor company’s stock, valued at approximately $775,000.
A number of other hedge funds have also recently bought and sold shares of the business. Andar Capital Management HK Ltd bought a new stake in shares of Semtech in the second quarter worth $162,000,000. BlackRock Inc. bought a new position in Semtech during the 2nd quarter valued at $1,577,947,000. Think Investments LP acquired a new position in Semtech during the 3rd quarter worth $58,618,000. Ameriprise Financial Inc. grew its holdings in Semtech by 10.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock worth $321,040,000 after acquiring an additional 666,456 shares in the last quarter. Finally, Atreides Management LP bought a new stake in shares of Semtech in the 2nd quarter worth about $29,880,000.
Analysts Set New Price Targets Several analysts have weighed in on SMTC shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Semtech in a research note on Thursday, June 18th. Susquehanna boosted their price objective on shares of Semtech from $170.00 to $200.00 and gave the company a “positive” rating in a research report on Wednesday, May 27th. Robert W. Baird increased their price objective on shares of Semtech from $225.00 to $300.00 and gave the stock an “outperform” rating in a research note on Thursday. Morgan Stanley raised their target price on shares of Semtech from $175.00 to $195.00 and gave the stock an “equal weight” rating in a report on Wednesday. Finally, Mizuho set a $225.00 target price on Semtech in a research note on Wednesday, May 27th. Fifteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Semtech presently has an average rating of “Moderate Buy” and a consensus target price of $204.71.
Get Our Latest Stock Report on Semtech Insider Buying and Selling at Semtech In other news, CFO Mark Lin sold 970 shares of the company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total transaction of $145,897.70. Following the completion of the transaction, the chief financial officer owned 34,896 shares of the company’s stock, valued at approximately $5,248,707.36. This represents a 2.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of Semtech stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total value of $294,093.60. Following the sale, the executive vice president directly owned 8,611 shares in the company, valued at approximately $1,118,568.90. This trade represents a 20.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 21,734 shares of company stock valued at $3,133,986 in the last three months. Company insiders own 0.44% of the company’s stock.
Semtech News Summary Here are the key news stories impacting Semtech this week:
Positive Sentiment: Strong quarterly results: Semtech reported record sales of approximately $341.9 million, up about 33% year over year, while adjusted earnings of $0.71 per share exceeded the $0.61 consensus estimate. Net income reportedly expanded 89%. Why Semtech Stock Was Flying This Week Positive Sentiment: AI data-center momentum: Reports highlight roughly $100 million in AI data-center demand and identify connectivity as a potential bottleneck for AI infrastructure. This supports expectations for continued growth in Semtech’s analog and signal-integrity businesses. Analog Bets Pay Off: Semtech Shatters Records as AI Data Center Demand Hits $100M Positive Sentiment: Raised outlook and improving balance sheet: Coverage cites higher guidance, expanding margins, debt reduction, and expectations for stronger near-term growth. The company’s reported third-quarter fiscal 2027 EPS outlook is $1.02–$1.08. Semtech Stock Rallies on Strong Q2 Results and Raised Guidance Positive Sentiment: Analyst support: Northland Securities upgraded Semtech to Outperform with a $182 price target, while Needham reaffirmed its Buy rating. Other coverage points to a consensus target near $200, reinforcing the bullish narrative. Northland lifts Semtech rating Neutral Sentiment: New product opportunity: The LoRa Plus transceiver lineup could strengthen Semtech’s position in long-range IoT connectivity, although the financial contribution and adoption pace remain uncertain. What Does Semtech Gain From Its New LoRa Plus Transceivers? Negative Sentiment: Valuation and volatility risks: Semtech trades at a high earnings multiple, and its elevated beta makes the stock sensitive to profit-taking after a sharp advance. Unusually high trading volume indicates that investors are actively reassessing the shares following earnings. Semtech Sees Unusually-High Trading Volume After Strong Earnings Semtech Stock Performance Shares of SMTC opened at $131.17 on Friday. The company has a market capitalization of $12.24 billion, a PE ratio of 86.87 and a beta of 2.35. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.62. Semtech Corporation has a one year low of $55.18 and a one year high of $177.35. The company’s fifty day moving average price is $135.08 and its 200 day moving average price is $119.10.
Semtech (NASDAQ:SMTC – Get Free Report) last issued its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, topping the consensus estimate of $0.61 by $0.10. Semtech had a return on equity of 21.74% and a net margin of 13.11%.The company had revenue of $341.87 million for the quarter, compared to the consensus estimate of $328.67 million. During the same period in the previous year, the business posted $0.41 EPS. The company’s revenue for the quarter was up 32.7% on a year-over-year basis. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, analysts expect that Semtech Corporation will post 1.81 earnings per share for the current year.
About Semtech (Free Report)
Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.
A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.
Featured Articles Five stocks we like better than Semtech 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? Want to see what other hedge funds are holding SMTC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Semtech Corporation (NASDAQ:SMTC – Free Report).
Receive News & Ratings for Semtech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Semtech and related companies with MarketBeat.com's FREE daily email newsletter.
Archer Investment Corp purchased a new position in Semtech Corporation (NASDAQ:SMTC – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 4,786 shares of the semiconductor company’s stock, valued at approximately $775,000.
A number of other hedge funds have also recently bought and sold shares of the business. Andar Capital Management HK Ltd bought a new stake in shares of Semtech in the second quarter worth $162,000,000. BlackRock Inc. bought a new position in Semtech during the 2nd quarter valued at $1,577,947,000. Think Investments LP acquired a new position in Semtech during the 3rd quarter worth $58,618,000. Ameriprise Financial Inc. grew its holdings in Semtech by 10.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock worth $321,040,000 after acquiring an additional 666,456 shares in the last quarter. Finally, Atreides Management LP bought a new stake in shares of Semtech in the 2nd quarter worth about $29,880,000.
Analysts Set New Price Targets Several analysts have weighed in on SMTC shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Semtech in a research note on Thursday, June 18th. Susquehanna boosted their price objective on shares of Semtech from $170.00 to $200.00 and gave the company a “positive” rating in a research report on Wednesday, May 27th. Robert W. Baird increased their price objective on shares of Semtech from $225.00 to $300.00 and gave the stock an “outperform” rating in a research note on Thursday. Morgan Stanley raised their target price on shares of Semtech from $175.00 to $195.00 and gave the stock an “equal weight” rating in a report on Wednesday. Finally, Mizuho set a $225.00 target price on Semtech in a research note on Wednesday, May 27th. Fifteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Semtech presently has an average rating of “Moderate Buy” and a consensus target price of $204.71.
Get Our Latest Stock Report on Semtech Insider Buying and Selling at Semtech In other news, CFO Mark Lin sold 970 shares of the company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total transaction of $145,897.70. Following the completion of the transaction, the chief financial officer owned 34,896 shares of the company’s stock, valued at approximately $5,248,707.36. This represents a 2.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of Semtech stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total value of $294,093.60. Following the sale, the executive vice president directly owned 8,611 shares in the company, valued at approximately $1,118,568.90. This trade represents a 20.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 21,734 shares of company stock valued at $3,133,986 in the last three months. Company insiders own 0.44% of the company’s stock.
Semtech News Summary Here are the key news stories impacting Semtech this week:
Positive Sentiment: Strong quarterly results: Semtech reported record sales of approximately $341.9 million, up about 33% year over year, while adjusted earnings of $0.71 per share exceeded the $0.61 consensus estimate. Net income reportedly expanded 89%. Why Semtech Stock Was Flying This Week Positive Sentiment: AI data-center momentum: Reports highlight roughly $100 million in AI data-center demand and identify connectivity as a potential bottleneck for AI infrastructure. This supports expectations for continued growth in Semtech’s analog and signal-integrity businesses. Analog Bets Pay Off: Semtech Shatters Records as AI Data Center Demand Hits $100M Positive Sentiment: Raised outlook and improving balance sheet: Coverage cites higher guidance, expanding margins, debt reduction, and expectations for stronger near-term growth. The company’s reported third-quarter fiscal 2027 EPS outlook is $1.02–$1.08. Semtech Stock Rallies on Strong Q2 Results and Raised Guidance Positive Sentiment: Analyst support: Northland Securities upgraded Semtech to Outperform with a $182 price target, while Needham reaffirmed its Buy rating. Other coverage points to a consensus target near $200, reinforcing the bullish narrative. Northland lifts Semtech rating Neutral Sentiment: New product opportunity: The LoRa Plus transceiver lineup could strengthen Semtech’s position in long-range IoT connectivity, although the financial contribution and adoption pace remain uncertain. What Does Semtech Gain From Its New LoRa Plus Transceivers? Negative Sentiment: Valuation and volatility risks: Semtech trades at a high earnings multiple, and its elevated beta makes the stock sensitive to profit-taking after a sharp advance. Unusually high trading volume indicates that investors are actively reassessing the shares following earnings. Semtech Sees Unusually-High Trading Volume After Strong Earnings Semtech Stock Performance Shares of SMTC opened at $131.17 on Friday. The company has a market capitalization of $12.24 billion, a PE ratio of 86.87 and a beta of 2.35. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.70 and a quick ratio of 1.62. Semtech Corporation has a one year low of $55.18 and a one year high of $177.35. The company’s fifty day moving average price is $135.08 and its 200 day moving average price is $119.10.
Semtech (NASDAQ:SMTC – Get Free Report) last issued its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, topping the consensus estimate of $0.61 by $0.10. Semtech had a return on equity of 21.74% and a net margin of 13.11%.The company had revenue of $341.87 million for the quarter, compared to the consensus estimate of $328.67 million. During the same period in the previous year, the business posted $0.41 EPS. The company’s revenue for the quarter was up 32.7% on a year-over-year basis. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, analysts expect that Semtech Corporation will post 1.81 earnings per share for the current year.
About Semtech (Free Report)
Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.
A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.
Featured Articles Five stocks we like better than Semtech 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? Want to see what other hedge funds are holding SMTC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Semtech Corporation (NASDAQ:SMTC – Free Report).
Receive News & Ratings for Semtech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Semtech and related companies with MarketBeat.com's FREE daily email newsletter.
[url="]Semtech Corporation[/url] (Nasdaq: SMTC), a leading provider of high-performance semiconductors powering AI data center networking and intelligent, conne
CAMARILLO, Calif.--(BUSINESS WIRE)--Semtech Corporation (Nasdaq: SMTC), a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected Internet of Things (“IoT”) devices worldwide, will host the LoRa® Global Ecosystem Forum at the 2026 International Internet of Things Exhibition (IOTE), taking place at the Shenzhen World Exhibition & Convention Center (Bao'an District) from Aug. 26-28. The company is exhibiting in Hall 10, Booth #10C51. T.
Deutsche Bank AG purchased a new stake in Semtech Corporation (NASDAQ:SMTC – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm purchased 59,478 shares of the semiconductor company’s stock, valued at approximately $9,627,000. Deutsche Bank AG owned approximately 0.06% of Semtech as of its most recent filing with the Securities and Exchange Commission.
A number of other hedge funds have also added to or reduced their stakes in the stock. Leonteq Securities AG raised its stake in shares of Semtech by 11.2% in the first quarter. Leonteq Securities AG now owns 1,171 shares of the semiconductor company’s stock worth $90,000 after purchasing an additional 118 shares during the last quarter. Evergreen Capital Management LLC boosted its position in shares of Semtech by 2.3% during the fourth quarter. Evergreen Capital Management LLC now owns 5,945 shares of the semiconductor company’s stock valued at $438,000 after buying an additional 136 shares during the last quarter. Stephens Inc. AR boosted its position in shares of Semtech by 3.3% during the fourth quarter. Stephens Inc. AR now owns 4,410 shares of the semiconductor company’s stock valued at $325,000 after buying an additional 142 shares during the last quarter. Captrust Financial Advisors grew its holdings in Semtech by 0.8% during the fourth quarter. Captrust Financial Advisors now owns 19,302 shares of the semiconductor company’s stock worth $1,422,000 after buying an additional 162 shares in the last quarter. Finally, Cetera Investment Advisers grew its holdings in Semtech by 1.5% during the fourth quarter. Cetera Investment Advisers now owns 11,737 shares of the semiconductor company’s stock worth $865,000 after buying an additional 177 shares in the last quarter.
Insider Activity at Semtech In other Semtech news, CEO Hong Q. Hou sold 2,000 shares of the business’s stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $133.00, for a total value of $266,000.00. Following the transaction, the chief executive officer directly owned 64,799 shares in the company, valued at $8,618,267. The trade was a 2.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of the stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $129.90, for a total transaction of $294,093.60. Following the transaction, the executive vice president directly owned 8,611 shares of the company’s stock, valued at $1,118,568.90. This represents a 20.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 21,734 shares of company stock valued at $3,133,986 in the last 90 days. 0.44% of the stock is currently owned by company insiders.
Analyst Upgrades and Downgrades Several equities analysts have weighed in on the company. Roth Capital raised their price objective on Semtech from $102.00 to $190.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Northland Securities lowered shares of Semtech from an “outperform” rating to a “market perform” rating in a research note on Tuesday, May 26th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Semtech in a report on Thursday, June 18th. Robert W. Baird raised their price target on shares of Semtech from $110.00 to $225.00 and gave the company an “outperform” rating in a research report on Wednesday, May 27th. Finally, Zacks Research upgraded shares of Semtech from a “hold” rating to a “strong-buy” rating in a report on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $189.47. Read Our Latest Stock Analysis on Semtech
Semtech Stock Performance Shares of Semtech stock opened at $124.09 on Monday. The business’s fifty day simple moving average is $137.87 and its 200 day simple moving average is $117.66. The firm has a market capitalization of $11.56 billion, a P/E ratio of -318.18 and a beta of 2.35. Semtech Corporation has a 12 month low of $49.04 and a 12 month high of $177.35. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86.
Semtech (NASDAQ:SMTC – Get Free Report) last posted its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.06. The business had revenue of $291.02 million for the quarter, compared to analysts’ expectations of $283.53 million. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The business’s revenue was up 15.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.38 earnings per share. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. As a group, analysts anticipate that Semtech Corporation will post 1.81 EPS for the current year.
About Semtech (Free Report)
Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.
A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.
Read More Five stocks we like better than Semtech VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over
Receive News & Ratings for Semtech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Semtech and related companies with MarketBeat.com's FREE daily email newsletter.
Semtech Corporation (NASDAQ:SMTC) will release its second quarter earnings report after the closing bell on Tuesday, Aug. 25.
Analysts expect the Camarillo, California-based company to report quarterly earnings of 61 cents per share, up from 41 cents per share in the year-ago period. The consensus estimate for Semtech’s quarterly revenue is $328.64 million. It reported $257.6 million last year, according to Benzinga Pro.
On Aug. 13, Semtech agreed to sell its cellular module business to Compal Electronics for $62 million in cash.
Shares of Semtech fell 0.6% to close at $124.09 on Friday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
BMO Capital analyst Harsh Kumar initiated coverage on the stock with an Outperform rating and a price target of $155 on Aug. 21, 2026. This analyst has an accuracy rate of 86%. Needham analyst N. Quinn Bolton maintained a Buy with a price target of $200 on Aug. 14, 2026. This analyst has an accuracy rate of 81%. TD Cowen analyst Sean O’Loughlin maintained a Buy rating and raised the price target from $210 to $215 on June 22, 2026. This analyst has an accuracy rate of 72%. UBS analyst Timothy Arcuri maintained a Buy rating and boosted the price target from $165 to $225 on May 27, 2026. This analyst has an accuracy rate of 88%. B. Riley Securities analyst Craig Kennison maintained a Buy rating and raised the price target from $165 to $210 on May 27, 2026. This analyst has an accuracy rate of 58%. Trending
Get a 1% Match on Your First Deposit of $1,000+
Considering buying SMTC stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Key Takeaways Semtech is set to report Q2 results, with revenues expected to rise 27.5% year over year.Data center demand, FiberEdge adoption and 1.6T architectures are expected to support SMTC's growth.LoRa deployments and premium handset content could boost Semtech's industrial and consumer businesses. Semtech Corporation (SMTC - Free Report) is scheduled to report second-quarter fiscal 2027 results on Aug. 25.
For the fiscal second quarter, Semtech anticipates revenues to be $328 million (+/- $5 million). The Zacks Consensus Estimate for revenues is pegged at $328.4 million, indicating a rise of 27.5% from the year-ago quarter.
SMTC expects non-GAAP earnings per share to be 61 cents (+/- 2 cents). The consensus mark for the same is pegged at 62 cents, unchanged over the past 60 days, indicating a year-over-year rise of 51%.
Factors to Consider for SMTC StockSemtech’s performance in the to-be-reported quarter is likely to have benefited from continued momentum across its infrastructure, industrial and high-end consumer end markets. The company’s data center business remains a key growth driver as demand for high-speed optical and copper interconnect solutions accelerates alongside the expansion of artificial intelligence infrastructure.
Increasing adoption of FiberEdge products and the transition to next-generation 1.6T architectures are expected to have supported growth in the to-be-reported quarter. The broader evaluation and deployment of CopperEdge solutions for active copper cable and onboard linear equalizer applications could have further strengthened the company’s data center opportunity.
LoRa is also expected to have remained an important contributor to Semtech’s industrial business. Broader deployments across utilities, smart buildings, smart cities and asset management are likely to have supported demand. The company’s efforts to expand LoRa into multi-protocol applications through LoRa Plus could have strengthened its addressable market, while growing design-win momentum and emerging consumer applications are expected to have provided additional support in the to-be-reported quarter.
Semtech’s high-end consumer business is likely to have benefited from increasing content per premium handset, continued gains in protection products and expanding sensing opportunities. Improving seasonal demand in the second quarter might have provided an additional tailwind. The company’s efforts to extend its protection franchise into power-delivery applications and to broaden its sensing portfolio are also expected to have supported growth.
Semtech’s optical roadmap might have benefited from the integration of HieFo, which expands its photonics capabilities for next-generation optical applications. Continued investment in coherent optics, co-packaged optics initiatives, LoRa and sensing is likely to have strengthened its long-term product pipeline.
What Our Proven Model Says for SMTC’s Q2 EarningsAccording to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Semtech has an Earnings ESP of 0.00% and carries a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to ConsiderHere are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:
Dell Technologies (DELL - Free Report) has an Earnings ESP of +6.42% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies is slated to report second-quarter fiscal 2027 results on Sept. 1. The Zacks Consensus Estimate for DELL’s second-quarter earnings is pegged at $4.88 per share, down by a penny over the past 30 days, indicating a rise of 110.3% from the year-ago quarter’s reported figure.
Hewlett Packard Enterprise (HPE - Free Report) has an Earnings ESP of +9.96% and carries a Zacks Rank #2 at present.
Hewlett Packard is set to report third-quarter fiscal 2026 results on Sept. 2. The Zacks Consensus Estimate for HPE’s third-quarter earnings is pegged at 94 cents per share, up by a penny over the past 30 days, indicating a rise of 113.6% from the year-ago quarter’s reported figure.
Intuit (INTU - Free Report) has an Earnings ESP of +0.08% and carries a Zacks Rank #3 at present.
Intuit is set to report fourth-quarter fiscal 2026 results on Aug. 25. The Zacks Consensus Estimate for INTU’s fourth-quarter earnings is pegged at $3.59 per share, unchanged over the past 30 days, indicating a rise of 30.6% from the year-ago quarter’s reported figure.
Wall Street analysts expect Semtech (SMTC - Free Report) to post quarterly earnings of $0.62 per share in its upcoming report, which indicates a year-over-year increase of 51.2%. Revenues are expected to be $328.37 million, up 27.5% from the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
With that in mind, let's delve into the average projections of some Semtech metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts' assessment points toward 'Net Sales by major end markets- High-End Consumer' reaching $39.96 million. The estimate suggests a change of -3% year over year.
Analysts forecast 'Net Sales by major end markets- Industrial' to reach $170.55 million. The estimate suggests a change of +19.2% year over year.
The collective assessment of analysts points to an estimated 'Net Sales by major end markets- Infrastructure' of $118.29 million. The estimate points to a change of +61.3% from the year-ago quarter.
The average prediction of analysts places 'Net Sales by reportable segment- Signal Integrity' at $125.46 million. The estimate suggests a change of +63.4% year over year.
The combined assessment of analysts suggests that 'Net Sales by reportable segment- Analog Mixed Signal and Wireless' will likely reach $109.99 million. The estimate points to a change of +19.6% from the year-ago quarter.
The consensus among analysts is that 'Net Sales by reportable segment- IoT Systems and Connectivity' will reach $92.71 million. The estimate indicates a change of +4.4% from the prior-year quarter.
View all Key Company Metrics for Semtech here>>>
Over the past month, shares of Semtech have returned -8.5% versus the Zacks S&P 500 composite's +3.5% change. Currently, SMTC carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
CAMARILLO, Calif.--(BUSINESS WIRE)--Semtech Corporation (Nasdaq: SMTC), a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected Internet of Things (“IoT”) devices worldwide, today announced the expansion of its LoRa Plus family with the introduction of the LR2022 and LR2012 transceivers, both now available in production. The two new devices extend the LoRa Plus family to address a full range of IoT application requirements — from sub-G.
Semtech Corporation (Nasdaq: SMTC), a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected Internet of Things (“IoT”) devices worldwide, today announced the expansion of its LoRa Plus family with the introduction of the LR2022 and LR2012 transceivers, both now available in production.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260819063295/en/
All Semtech LoRa Plus devices support LoRaWAN, LR-FHSS, Amazon Sidewalk, Wi-SUN FSK, and Wireless M-BUS.
The two new devices extend the LoRa Plus family to address a full range of IoT application requirements — from sub-GHz deployments to multi-band global tracking with satellite connectivity — bringing the LoRa Plus portfolio to three production-ready transceivers.
The LR2022 and LR2012 share the same fourth-generation LoRa® IP core as the LR2021, offering backward compatibility with LoRaWAN®, LR-FHSS and legacy OOK devices. The devices feature radio performance with best-in-class sensitivity with extended data rates up to 125 Kbps for LoRa and 2 Mbps for FSK applications. This throughput enables high-speed burst data transmissions within a low-power envelope — supporting large file transfers including images, audio, and firmware-update-over-the-air (FUOTA) updates. The devices also support use cases requiring very low latency in proprietary wireless protocols.
“Zenner selected Semtech’s LR2012 LoRa Plus transceiver for our Stealth Reader Meter Interface Unit for AMR/AMI due to its superior LoRaWAN performance, backward compatibility with legacy OOK, and support for LR-FHSS enabling scalable satellite connectivity,” said Rich Sanders, president, Zenner USA.
“For our next-generation metering solutions, we wanted a LoRaWAN platform that could fully leverage the latest LoRa innovations. Semtech’s LR2012 delivers exactly that at the right price point, making it the ideal choice to power our roadmap,” added Tobias Knop, team leader firmware development, Engelmann Sensor GmbH.
“With the LR2022 and LR2012 now in production, there is a LoRa Plus chip for multiple IoT applications — from sub-GHz sensor nodes to global multi-band trackers with satellite connectivity to edge AI devices supporting multiple wireless protocols,” said Shahar Feldman, senior product marketing director of wireless ICs at Semtech. “These devices share the same fourth-generation LoRa IP platform and Unified Software Platform, backed by a global ecosystem of more than 500 million deployed LoRa devices.”
A Complete Wireless IC Portfolio — Available Now
LR2021: multi-band, multi-protocol transceiver with FLRC 2.6 Mbps for Edge AILR2022: multi-band, single-hardware-design transceiver for global terrestrial and non-terrestrial networksLR2012: sub-GHz transceiver optimized for traditional low-power wireless and LPWANIndustry partners and customers can experience the full LoRa Plus portfolio at the following upcoming events:
Aug. 26–28, 2026 — IoTE 2026, Shenzhen, China: Asia’s largest IoT exhibition and home of the LoRa Global Ecosystem Forum, booth #10C51.Sept. 17–19, 2026 — Electronica India, Bengaluru, India: India’s leading electronics and embedded technology exhibition, booth #H3.G11.Sept. 25–26, 2026 — The Things Conference, Amsterdam, Netherlands: The premier LoRaWAN developer and ecosystem event, booth #XL3.Learn more at http://www.semtech.com/events.
About Semtech
Semtech Corporation (Nasdaq: SMTC) is a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected IoT devices worldwide. Our global teams are committed to empowering solution architects and application developers to develop breakthrough products for the infrastructure, industrial and consumer markets. To learn more about Semtech technology, visit us at Semtech.com or follow us on LinkedIn or X.
Semtech, the Semtech logo, LoRa and LoRaWAN are registered trademarks or service marks of Semtech Corporation or its subsidiaries. LoRa Plus is a trademark or service mark of Semtech Corporation or its subsidiaries. All other trademarks, service marks, and trade names mentioned in this press release are the property of their respective owners.
SMTC-P
View source version on businesswire.com: https://www.businesswire.com/news/home/20260819063295/en/
Hong Q. Hou, President and CEO of Semtech Corporation (SMTC -6.66%), sold 2,000 shares of common stock on Aug. 7, 2026, for a total value of $280,000, according to a SEC Form 4 filing.
Transaction summaryMetricValueShares sold2,000Transaction value$280,000Post-transaction shares (directly held)62,799Post-transaction value~$8.8 millionTransaction value based on SEC Form 4 weighted average sale price ($140.00); post-transaction value based on Aug. 7, 2026, market close ($139.42).
Key questionsWhat was the primary driver for this transaction?
The disposal was non-discretionary and executed via a pre-arranged Rule 10b5-1 trading plan adopted in late 2025, which allows insiders to schedule stock sales in advance to manage personal liquidity and portfolio concentration.How significant is the CEO's remaining stake in the firm?
Following this 3% reduction, Hong Q. Hou maintains a direct position of 62,799 shares, representing a 0.0674% ownership stake in the company valued at approximately $8.8 million at the time of the transaction.What is the current business profile for Semtech?
The technology firm specializes in advanced analog and mixed-signal semiconductor components, reporting $1.1 billion in trailing twelve-month (TTM) revenue and a market capitalization of $12.9 billion.What is the current market valuation for the stock?
As of the Aug. 7, 2026, market close, shares were priced at $131.27, following a period of performance where the stock delivered a 171% total return over the 12 months ending on the transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$131.27Market Capitalization$12.9 billionRevenue (TTM)$1.1 billionNet Income (TTM)-$33.2 millionCompany SnapshotSemtech Corporation designs, manufactures, and distributes advanced analog and mixed-signal semiconductor components and algorithms, with primary revenue derived from signal integrity solutions, including optical data communication and video transport products for infrastructure and industrial applications.The company generates revenue through the sale of integrated circuits and semiconductor solutions engineered for data communication, signal processing, and connectivity applications across multiple end markets.Semtech serves customers in the telecommunications infrastructure, data centers, industrial automation, and consumer electronics sectors, targeting original equipment manufacturers and system integrators that require high-performance analog and mixed-signal solutions.
Today's Change
(
-6.66
%) $
-9.01
Current Price
$
126.22
Semtech is a mid-cap semiconductor specialist with a market capitalization of $12.9 billion and employs 1,920 professionals at its Camarillo headquarters. The company has demonstrated significant momentum, with a one-year share price appreciation of 171%, reflecting investor confidence in its analog and mixed-signal semiconductor portfolio.
Despite near-term profitability headwinds reflected in TTM net losses, Semtech maintains a substantial $1.1 billion revenue base, positioning itself as a specialized player in high-performance semiconductor solutions for critical infrastructure and industrial applications.
What this transaction means for investorsThis sale shouldn't concern investors. It represented a small percentage of the executive's holdings in the company's stock. It was also executed under a pre-adopted Rule 10b5-1 plan, which allows insiders to execute transactions for personal reasons without appearing to act on material non-public information.
Semtech continues to grow revenue, up 14% year over year on a TTM basis through the first fiscal quarter. This reflects strong demand for its data center and long-range frequency chips.
With the company emerging from a capacity-constrained environment, analysts see room for more growth. The current consensus estimate calls for earnings to grow at a compound annual rate of 20% in the coming years.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Semtech (NASDAQ:SMTC – Get Free Report) and Qualcomm (NASDAQ:QCOM – Get Free Report) are both large-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.
Volatility and Risk Semtech has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, Qualcomm has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.
Earnings & Valuation This table compares Semtech and Qualcomm”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Semtech $1.05 billion 11.65 -$40.38 million ($0.39) -336.59 Qualcomm $44.28 billion 3.85 $5.54 billion $8.64 18.77 Qualcomm has higher revenue and earnings than Semtech. Semtech is trading at a lower price-to-earnings ratio than Qualcomm, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership 74.3% of Qualcomm shares are owned by institutional investors. 0.4% of Semtech shares are owned by company insiders. Comparatively, 0.1% of Qualcomm shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability This table compares Semtech and Qualcomm’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Semtech -3.05% 18.31% 7.25% Qualcomm 21.01% 38.36% 17.48% Analyst Ratings This is a summary of recent ratings and recommmendations for Semtech and Qualcomm, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Semtech 1 3 13 1 2.78 Qualcomm 2 21 14 1 2.37 Semtech currently has a consensus price target of $189.07, indicating a potential upside of 44.03%. Qualcomm has a consensus price target of $203.63, indicating a potential upside of 25.57%. Given Semtech’s stronger consensus rating and higher possible upside, equities analysts plainly believe Semtech is more favorable than Qualcomm.
Summary Qualcomm beats Semtech on 9 of the 14 factors compared between the two stocks.
About Semtech (Get Free Report)
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, it offers portfolio of IoT solutions, such as modules, gateways, routers, and connected services; and portfolio of connected services, including wireless connectivity and cloud-based services for industrial, medical and communications applications. The company serves original equipment manufacturers and industrial end-markets. It sells its products directly, as well as through independent sales representative firms and independent distributors in Asia- Pacific, North America, and Europe. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.
About Qualcomm (Get Free Report)
Qualcomm Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.
Receive News & Ratings for Semtech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Semtech and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEAnalysts Set Vail Resorts, Inc. (NYSE:MTN) PT at $151.45
NEXT HEADLINE »Brokerages Set Cal-Maine Foods, Inc. (NASDAQ:CALM) Price Target at $94.71
Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.
Shareholders should contact the firm immediately as there may be limited time to enforce your rights.
, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Semtech Corporation (NASDAQ: SMTC) breached their fiduciary duties to shareholders.
If you currently own Semtech stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or [email protected] or [email protected].
Why Your Participation Matters:
Shareholder involvement can help improve a company's policies, practices, and oversight mechanisms to create a more transparent, accountable, and effectively managed organization, which can enhance shareholder value.
Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Contact Information:
Halper Sadeh LLC
One World Trade Center
85th Floor
New York, NY 10007
Daniel Sadeh, Esq.
Zachary Halper, Esq.
(212) 763-0060
[email protected]
[email protected]
https://www.halpersadeh.com
California Public Employees Retirement System acquired a new stake in Semtech Corporation (NASDAQ:SMTC – Free Report) during the first quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 141,886 shares of the semiconductor company’s stock, valued at approximately $10,910,000. California Public Employees Retirement System owned approximately 0.15% of Semtech at the end of the most recent reporting period.
A number of other institutional investors and hedge funds have also recently made changes to their positions in the business. Think Investments LP acquired a new stake in Semtech during the third quarter worth approximately $58,618,000. Ameriprise Financial Inc. boosted its position in Semtech by 10.3% in the second quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock valued at $321,040,000 after buying an additional 666,456 shares in the last quarter. Atreides Management LP bought a new stake in Semtech during the 2nd quarter worth $29,880,000. Assenagon Asset Management S.A. raised its holdings in Semtech by 323.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company’s stock valued at $60,051,000 after buying an additional 596,373 shares during the last quarter. Finally, Capital International Investors bought a new stake in shares of Semtech in the fourth quarter worth $39,593,000.
Insider Activity In other news, CFO Mark Lin sold 970 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total value of $145,897.70. Following the sale, the chief financial officer owned 34,896 shares of the company’s stock, valued at $5,248,707.36. The trade was a 2.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Asaf Silberstein sold 8,500 shares of the firm’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total transaction of $1,086,300.00. Following the completion of the transaction, the chief operating officer directly owned 96,862 shares of the company’s stock, valued at approximately $12,378,963.60. This trade represents a 8.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 22,234 shares of company stock worth $3,203,091. 0.44% of the stock is owned by company insiders.
Semtech Trading Down 9.2% Shares of SMTC stock opened at $125.92 on Friday. The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. The firm has a market cap of $11.73 billion, a P/E ratio of -322.87 and a beta of 2.31. The company has a 50 day moving average of $149.03 and a 200-day moving average of $110.52. Semtech Corporation has a 12-month low of $46.02 and a 12-month high of $177.35.
Semtech (NASDAQ:SMTC – Get Free Report) last posted its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.45 by $0.06. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The business had revenue of $291.02 million for the quarter, compared to the consensus estimate of $283.53 million. During the same quarter in the prior year, the business earned $0.38 earnings per share. Semtech’s revenue for the quarter was up 15.9% on a year-over-year basis. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. Sell-side analysts anticipate that Semtech Corporation will post 1.81 earnings per share for the current year.
Analyst Upgrades and Downgrades A number of analysts have weighed in on SMTC shares. Stifel Nicolaus increased their target price on shares of Semtech from $157.00 to $188.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Susquehanna raised their price objective on Semtech from $170.00 to $200.00 and gave the company a “positive” rating in a research note on Wednesday, May 27th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Semtech in a research report on Thursday, June 18th. Morgan Stanley upped their target price on shares of Semtech from $155.00 to $175.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 27th. Finally, B. Riley Financial boosted their price objective on Semtech from $165.00 to $210.00 and gave the stock a “buy” rating in a research report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $189.07.
View Our Latest Analysis on SMTC
About Semtech (Free Report)
Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.
A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.
Featured Articles Five stocks we like better than Semtech Telecom Earnings Reveal a Sector That Finally Looks Healthier Defense Earnings Show Readiness Now and Modernization Ahead Why Palantir Investors Aren’t Panicking While the Rest of AI Sells Off MarketBeat Week in Review – 07/20- 07/24
Receive News & Ratings for Semtech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Semtech and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEAmazon.com, Inc. $AMZN Shares Sold by Del Sette Capital Management LLC
NEXT HEADLINE »Fifth Third Bancorp Increases Holdings in Oceaneering International, Inc. $OII
Semtech Corporation (NASDAQ:SMTC – Get Free Report) saw unusually large options trading on Friday. Stock investors purchased 6,027 put options on the company. This represents an increase of approximately 51% compared to the average volume of 3,981 put options.
Insider Buying and Selling In other news, COO Asaf Silberstein sold 8,500 shares of the business’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total value of $1,086,300.00. Following the completion of the sale, the chief operating officer directly owned 96,862 shares in the company, valued at $12,378,963.60. The trade was a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of the stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $133.00, for a total value of $266,000.00. Following the transaction, the chief executive officer owned 64,799 shares in the company, valued at $8,618,267. This trade represents a 2.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,234 shares of company stock valued at $3,203,091 in the last 90 days. Corporate insiders own 0.44% of the company’s stock.
Institutional Inflows and Outflows Several institutional investors and hedge funds have recently modified their holdings of SMTC. Jones Financial Companies Lllp grew its holdings in shares of Semtech by 12,214.3% in the first quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company’s stock valued at $89,000 after purchasing an additional 2,565 shares during the period. Empowered Funds LLC boosted its holdings in Semtech by 11.5% in the 1st quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company’s stock valued at $323,000 after purchasing an additional 968 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Semtech by 5.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company’s stock valued at $14,166,000 after buying an additional 22,629 shares during the period. Strs Ohio acquired a new stake in shares of Semtech during the 1st quarter worth approximately $65,000. Finally, Cetera Investment Advisers acquired a new stake in shares of Semtech during the 2nd quarter worth approximately $226,000.
Semtech Stock Down 9.2% Shares of NASDAQ SMTC opened at $125.92 on Friday. The stock has a market cap of $11.73 billion, a PE ratio of -322.87 and a beta of 2.31. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86. Semtech has a 12-month low of $46.02 and a 12-month high of $177.35. The company has a 50-day moving average of $149.03 and a 200 day moving average of $110.52.
Semtech (NASDAQ:SMTC – Get Free Report) last issued its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.06. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The business had revenue of $291.02 million for the quarter, compared to analysts’ expectations of $283.53 million. During the same period in the previous year, the firm posted $0.38 EPS. The business’s revenue for the quarter was up 15.9% compared to the same quarter last year. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. As a group, sell-side analysts predict that Semtech will post 1.81 EPS for the current fiscal year.
Analyst Upgrades and Downgrades A number of analysts have recently commented on SMTC shares. Roth Capital boosted their target price on shares of Semtech from $102.00 to $190.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. B. Riley Financial raised their price target on shares of Semtech from $165.00 to $210.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. TD Cowen lifted their price objective on Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. Robert W. Baird increased their target price on Semtech from $110.00 to $225.00 and gave the company an “outperform” rating in a report on Wednesday, May 27th. Finally, Morgan Stanley raised their target price on Semtech from $155.00 to $175.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $189.07.
Read Our Latest Analysis on Semtech
Semtech Company Profile (Get Free Report)
Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.
A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.
Featured Stories Five stocks we like better than Semtech Telecom Earnings Reveal a Sector That Finally Looks Healthier Defense Earnings Show Readiness Now and Modernization Ahead Why Palantir Investors Aren’t Panicking While the Rest of AI Sells Off MarketBeat Week in Review – 07/20- 07/24 Receive News & Ratings for Semtech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Semtech and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEMolina Healthcare (NYSE:MOH) Upgraded at Zacks Research
NEXT HEADLINE »Halozyme Therapeutics (NASDAQ:HALO) Hits New 52-Week High – Here’s What Happened
On July 24, 2026, Semtech Corp (SMTC) shares fell 9.2%, closing at $125.92. This decline comes amid a volatile year for the stock, which has witnessed a 52-week
PHILADELPHIA--(BUSINESS WIRE)--Investor litigation firm Kaskela Law announces that it is investigating Semtech Corporation (NASDAQ: SMTC) (“Semtech”) on behalf of the company's long-term investors. Click here for additional information: https://kaskelalaw.com/case/semtech-corporation/ Recently a securities fraud complaint was filed against Semtech on behalf of investors who purchased shares of the company's stock between October 10, 2024 and February 7, 2025 (the “Wrongdoing Period”). According.
Andar Capital Management HK Ltd grew its position in shares of Semtech Corporation (NASDAQ:SMTC – Free Report) by 3.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 196,000 shares of the semiconductor company’s stock after purchasing an additional 6,475 shares during the period. Semtech accounts for about 12.9% of Andar Capital Management HK Ltd’s investment portfolio, making the stock its 3rd largest position. Andar Capital Management HK Ltd owned about 0.21% of Semtech worth $15,070,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors have also modified their holdings of the company. Jones Financial Companies Lllp increased its stake in Semtech by 12,214.3% in the first quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company’s stock valued at $89,000 after purchasing an additional 2,565 shares during the last quarter. Empowered Funds LLC boosted its stake in Semtech by 11.5% in the 1st quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company’s stock worth $323,000 after buying an additional 968 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Semtech by 5.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company’s stock worth $14,166,000 after buying an additional 22,629 shares during the last quarter. Strs Ohio purchased a new stake in Semtech in the 1st quarter valued at about $65,000. Finally, Cetera Investment Advisers purchased a new stake in Semtech in the 2nd quarter valued at about $226,000.
Semtech Price Performance Shares of NASDAQ SMTC opened at $125.88 on Tuesday. The company has a debt-to-equity ratio of 0.86, a current ratio of 2.37 and a quick ratio of 1.62. Semtech Corporation has a 1-year low of $46.02 and a 1-year high of $177.35. The company has a market capitalization of $11.73 billion, a price-to-earnings ratio of -322.77 and a beta of 2.31. The business has a 50-day moving average of $149.26 and a 200-day moving average of $109.07.
Semtech (NASDAQ:SMTC – Get Free Report) last posted its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, beating analysts’ consensus estimates of $0.45 by $0.06. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The company had revenue of $291.02 million during the quarter, compared to analysts’ expectations of $283.53 million. During the same period in the prior year, the company posted $0.38 EPS. The firm’s revenue for the quarter was up 15.9% on a year-over-year basis. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. On average, equities analysts anticipate that Semtech Corporation will post 1.81 EPS for the current fiscal year.
Analyst Ratings Changes SMTC has been the topic of several recent analyst reports. Craig Hallum increased their price objective on shares of Semtech from $105.00 to $205.00 and gave the stock a “buy” rating in a report on Wednesday, May 27th. B. Riley Financial boosted their target price on shares of Semtech from $165.00 to $210.00 and gave the company a “buy” rating in a report on Wednesday, May 27th. Susquehanna upped their price target on shares of Semtech from $170.00 to $200.00 and gave the stock a “positive” rating in a research report on Wednesday, May 27th. Needham & Company LLC reaffirmed a “buy” rating and set a $200.00 price target on shares of Semtech in a research note on Monday, July 13th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Semtech in a report on Thursday, June 18th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $189.07.
View Our Latest Report on SMTC
Insider Buying and Selling at Semtech In related news, insider John Michael Wilson sold 5,500 shares of the company’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $170.00, for a total transaction of $935,000.00. Following the completion of the transaction, the insider directly owned 80,876 shares in the company, valued at $13,748,920. This represents a 6.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Mark Lin sold 970 shares of the company’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $150.41, for a total transaction of $145,897.70. Following the transaction, the chief financial officer owned 34,896 shares of the company’s stock, valued at $5,248,707.36. This represents a 2.70% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 22,734 shares of company stock valued at $3,256,056. Corporate insiders own 0.44% of the company’s stock.
Semtech Company Profile (Free Report)
Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.
A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.
See Also Five stocks we like better than Semtech The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story
Receive News & Ratings for Semtech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Semtech and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINENutrien Ltd. $NTR Shares Purchased by Amova Asset Management Americas Inc.
NEXT HEADLINE »Heico Corporation $HEI Shares Bought by Amova Asset Management Americas Inc.
The choice between JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC 0.28%) and iShares Morningstar Small-Cap ETF (ISCB 0.46%) involves weighing a more concentrated, momentum-led portfolio against a highly diversified, ultra-low-cost fund.
Small-cap companies often drive long-term growth, though they frequently exhibit greater volatility than their large-cap counterparts. Investors choosing between these two funds are evaluating different ways to access this segment, focusing on either high-breadth indexing or a more targeted selection of small-cap firms.
Snapshot (cost & size)MetricISCBBBSCIssueriSharesJ.P. MorganShare price$75.02 (as of 2026-07-02)$90.72 (as of 2026-07-02)Expense ratio0.04%0.09%1-yr return (as of July 2, 2026)27.80%35.80%Dividend yield1.30%1.00%Beta1.051.13AUM$285.4 million$708.1 millionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the July 2 market closing price.
The iShares Morningstar Small-Cap ETF is the more affordable choice with a 0.04% expense ratio, which is 0.05 percentage points lower than its competitor. It also provides a slightly higher payout for income-seeking investors.
Performance & risk comparisonMetricISCBBBSCMax drawdown (5 yr)(29.90%)(31.00%)Growth of $1,000 over 5 years (total return)$1,379.00$1,440.00What's insideJPMorgan BetaBuilders U.S. Small Cap Equity ETF focuses its portfolio on Technology (18.9%), Healthcare (16.8%), and Financial Services (15.7%). Its largest positions include cash through a JP Morgan U.S. government money market fund (1%), Semtech (SMTC 8.94%) at 0.6%, and FormFactor Inc (FORM 11.81%) (0.5%). The fund currently holds 728 positions and was launched in 2020. JPMorgan BetaBuilders U.S. Small Cap Equity ETF has paid $0.90 per share over the trailing 12 months, which, on its recent ~$91 share price, works out to a 1% yield.
The iShares Morningstar Small-Cap ETF tracks a benchmark of 1,557 stocks, offering broader diversification across Industrials (18.2%), Financial Services (15.9%), and Technology (15.6%). Its top holdings include Sterling Infrastructure (STRL 7.32%) at 0.4%, Okta (OKTA +0.76%) at 0.36%, Guardant Health (GH 2.77%) at 0.3%. This fund was launched in 2004. iShares Morningstar Small-Cap ETF has paid $0.95 per share over the trailing 12 months, which, on its recent ~$75 share price, works out to a 1.30% yield.
The iShares Morningstar Small-Cap ETF is the more established of these two small-cap funds, having returned an annualized 8.35% since its inception in 2004. Its performance has been good in short-term frames as well, delivering returns of 16.8% and 6.8% over the 3-year and 5-year look-backs. Its fundamental difference from the JPMorgan small-cap offering is that this ETF tracks a slightly broader Morningstar index, providing greater exposure to a broader range of small caps.
By comparison, the JPMorgan BetaBuilders U.S. Small Cap Equity ETF tracks a narrower version of the Morningstar index, which excludes several microcaps and stocks not considered easily investible due to liquidity constraints. Interestingly, BBSC is more concentrated in small caps, with 97% of its portfolio in small caps and 3% in mid-caps, compared to 9% in mid-caps for the iShares edition.
Still, overall, both give excellent exposure to small-cap U.S. stocks. The main difference, then, is performance. Here, the JPMorgan ETF wins out. It’s up about 24% year-to-date compared to 16.8% for ISCB, and beats the iShares ETF by 2.4 percentage points over the past three years and 1.07 percentage points over the past five years. BBSC has a higher expense ratio, but at 0.09%, it’s close to the low end for ETFs. The JPMorgan BetaBuilders U.S. Small Cap Equity ETF wins out.
For more guidance on ETF investing, check out the full guide at this link.
It has been about a month since the last earnings report for Semtech (SMTC - Free Report) . Shares have added about 0.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Semtech due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Semtech Corporation before we dive into how investors and analysts have reacted as of late.
Semtech's Q1 Earnings Surpass Estimates, Revenues Increase Y/YSemtech Corporation reported better-than-expected first-quarter fiscal 2027 results. Semtech posted non-GAAP earnings of 51 cents per share, which beat the Zacks Consensus Estimate by 13.3%. The bottom line exceeded the management’s guidance of 45 cents (+/- 3 cents) and reflected a robust year-over-year improvement of approximately 34.2%.
Semtech beat on earnings in each of the trailing four quarters, the average surprise being 6.8%.
SMTC’s first-quarter fiscal 2027 revenues of $291 million topped the Zacks Consensus Estimate by 2.7% and came above management’s guidance of $283 million (+/- $5 million). The top line jumped 16% year over year, with solid growth across all of its end markets, particularly in data centers.
Semtech’s Q1 Revenues in Terms of End MarketsThe company’s top-line performance can be attributed to the impressive year-over-year rise in its end markets.
Sales from the infrastructure market totaled $98.8 million (33.9% of net sales), exhibiting year-over-year growth of 36%, supported by the expanding data center business. A key highlight was record data center net sales of $71.6 million, rising 39% year over year, reflecting continued strength in high-speed interconnect solutions.
Sales from the industrial market amounted to $153.9 million (52.9% of net sales), up 8% year over year.
Sales from the high-end consumer market totaled $38.4 million (13.2% of net sales), up 8% year over year, as the company cited resilience and continued design win momentum.
SMTC's LoRa Growth Adds Another EngineLoRa-enabled net sales were $44.5 million, up 12% sequentially and 14% year over year, reflecting broader adoption across smart utilities, smart buildings, smart cities and asset management.
The company is positioning its fourth-generation LoRa platform to expand use cases by combining dual-band capability with higher data throughput, while maintaining the low-power attributes that underpin long-battery-life deployments.
SMTC’s Q1 Revenues in Terms of Product LinesSignal Integrity (35.1% of net sales) sales totaled $102 million, up 38.8% year over year. Analog Mixed Signal & Wireless (34.6% of net sales) sales amounted to $100.8 million, which rose 11.3% year over year.
IoT System and Connectivity (30.3% of net sales) sales totaled $88.3 million, up 1.6% on a year-over-year basis.
Semtech’s Margins in DetailsThe non-GAAP gross margin of 53% contracted 50 basis points (bps) on a year-over-year basis and expanded 140 bps sequentially.
Non-GAAP operating income increased 24.6% year over year to $59.3 million. The non-GAAP operating margin expanded to 20.4% from 19% reported in the year-ago quarter. On a quarter-over-quarter basis, non-GAAP operating income increased 18.6%, while margin expanded 220 basis points.
Semtech’s Balance Sheet & Cash FlowAs of April 26, 2026, cash and cash equivalents totaled $163.3 million, down from $195.2 million as of Jan. 25, 2026.
The long-term debt amounted to $492 million, up from the previous quarter’s reported figure of $491.2 million.
During the first quarter, Semtech generated operating cash flow and free cash flow of $36.2 million and $28 million, respectively.
Semtech Initiates Q2 FY27 GuidanceFor the second quarter of fiscal 2027, Semtech expects net sales to be $328 million (+/- $5 million).
The non-GAAP gross margin is expected to be 54% (+/- 50 bps). The non-GAAP operating margin is anticipated to be 21.9% (+/- 40 bps).
Non-GAAP earnings are expected to be 61 cents (+/- 2 cents) per share.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 12.27% due to these changes.
VGM ScoresCurrently, Semtech has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Semtech has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Semtech (SMTC - Free Report) closed the last trading session at $158.48, gaining 0.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $205.25 indicates a 29.5% upside potential.
The average comprises 12 short-term price targets ranging from a low of $175.00 to a high of $230.00, with a standard deviation of $16.62. While the lowest estimate indicates an increase of 10.4% from the current price level, the most optimistic estimate points to a 45.1% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in SMTC. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SMTC Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, six estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 12.9%.
Moreover, SMTC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SMTC could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways STRL is benefiting from AI data center demand and earlier-than-planned project execution.SMTC sees AI networking demand growth, with portfolio moves focused on optical module opportunities.VIAV is witnessing strong demand from AI hyperscalers and infrastructure providers. The information technology sector has been witnessing a bull-run over the past three and half years reviving the entire U.S. stock markets single-handedly after the coronavirus-led devastation. The generic artificial intelligence (AI) technologies and their massive adoption across the globe have completely changed the Wall Street scenario. The latest advent of agentic AI is giving the space a further in every sphere of the economy.
Here, we have identified three AI-driven stocks that have provided triple-digit returns year to date. Despite having skyrocketed, these stocks currently carry double-digit upside potential for the short term. Moreover, their attractive product portfolio, solid pipeline and a favorable Zacks Rank indicate long-term prospects.
These stocks are: Sterling Infrastructure Inc. (STRL - Free Report) , Semtech Corp. (SMTC - Free Report) and Viavi Solutions Inc. (VIAV - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Sterling Infrastructure Inc.Zacks Rank #1 Sterling Infrastructure specializes in constructing complex data centers, e-commerce distribution facilities, and manufacturing sites. The company is a major provider of high-density, AI-Powered data centers. STRL is a notable beneficiary of the massive AI data center boom.
E-Infrastructure Solutions projects develop advanced, large-scale site development systems and services for data centers, e-commerce distribution centers, warehousing, transportation, energy and more.
Sterling’s combined offering of site development and electrical services is gaining traction faster than expected. STRL highlighted that in the first quarter of 2026, two data center campuses moved to integrated execution six to eight months earlier than planned, validating cross-sell traction and schedule compression benefits.
STRL’s complementary investments — AI tools that increased project manager capacity by about 15% and a modular manufacturing program that will triple capacity within nearly 18 months — reduce field labor intensity and enhance quality/efficiency.
Strong Estimate Revisions and Price UpsideSterling Infrastructure has an expected revenue and earnings growth rate of 59.2% and 77.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.1% over the last 30 days.
Moreover, STRL has an expected revenue and earnings growth rate of 29.1% and 42.1%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 5.5% over the last 30 days.
Image Source: Zacks Investment Research
The short-term average price target of brokerage firms for the stock represents an increase of 9.7% from the last closing price of $861.88. The brokerage target price is currently in the range of $884-$1,015. This indicates a maximum upside of 17.8% and no downside. The risk/reward ratio is extremely favorable.
Semtech Corp.Zacks Rank #2 Semtech is benefiting from AI-led data center networking demand, with FiberEdge anchored in the current generation and CopperEdge widening the content opportunity as 1.6T ramps begin.
SMTC’s LoRa is extending beyond core utilities into broader multi-protocol use cases, and management expects another step up in the next quarter. High-end consumers are also seeing share and content gains in protection and sensing.
SMTC’s portfolio actions, including the pending cellular module divestiture and the HieFo integration, are aimed at sharpening focus and adding photonics capability in 1.6T and 3.2T optical modules.
Solid Estimate Revisions and Price UpsideSemtech has an expected revenue and earnings growth rate of 29.1% and 55.6%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 20.1% over the last 30 days.
Moreover, SMTC has an expected revenue and earnings growth rate of 20.3% and 36%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 31.6% over the last 30 days.
Image Source: Zacks Investment Research
The short-term average price target of brokerage firms for the stock represents an increase of 29.5% from the last closing price of $158.23. The brokerage target price is currently in the range of $175-$230. This indicates a maximum upside of 45.3% and no downside. The risk/reward ratio is extremely favorable.
Viavi Solutions Inc.Zacks Rank #2 Viavi Solutions benefits from growing demand across data center, AI infrastructure, aerospace and defense markets, supported by its comprehensive portfolio offerings. VIAV’s Spirent asset integration has expanded its presence in high-speed Ethernet and network security testing, while recent product launches enhance its capabilities in AI data center validation, cybersecurity and resilient timing applications.
VIAV’s revenue growth in Network and Service Enablement continues to be supported by demand from hyperscalers, semiconductor infrastructure providers and the broader data center ecosystem. Management highlighted momentum across scale-up and scale-out architectures tied to AI workloads and high-speed interconnect technologies.
Recent investments in PCIe 7.0 analysis capabilities and the launch of the CyberFlood CF1000 platform expand VIAV’s ability to validate AI inference workloads, encrypted traffic and next-generation data center infrastructure. These developments strengthen exposure to long-term AI-related network testing demand and support continued growth in lab, production and field-testing solutions.
Impressive Estimate Revisions and Price UpsideViavi Solutions has an expected revenue and earnings growth rate of 20.1% and 30.9%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 0.8% over the last 30 days.
Image Source: Zacks Investment Research
The short-term average price target of brokerage firms for the stock represents an increase of 37% from the last closing price of $47.17. The brokerage target price is currently in the range of $60-$70. This indicates a maximum upside of 48.4% and no downside. The risk/reward ratio is extremely favorable.
