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, is adding new resilient communications building blocks to its AirLink® 5G Networking Solutions. Semtech will demonstrate the new capabilities in booth #2964 at the International Association of Chiefs of Police (IACP) conference in Orlando, Fla.
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Semtech’s AirLink XR60, XR80 and XR90 in-vehicle 5G routers support network slicing, FIPS 140-3 and fleet management for public safety agencies.
First responders rely on in-vehicle connectivity for computer-aided dispatch, live video and mobile data. When a mass-casualty incident, large-scale event or natural disaster pushes commercial networks to capacity, public safety traffic can get caught in the same congestion. In a recent survey, 64% of first responders named unreliable network connectivity as their single biggest concern (Source: T-Mobile, “5G and Public Safety: Transforming Emergency Response with T-Priority,” T-Mobile Newsroom, 2025).
“Resilient communication is not a capacity problem; it’s a priority and a data security problem,” said Kinana Hussein, vice president of networking solutions at Semtech. “AirLink networking solutions help address both. Network slicing support gives public safety dedicated, prioritized access to network resources, and AirLink OS 6.1 helps agencies meet FIPS 140-3 through a software update, with no hardware replacement.”
AirLink XR90, XR80 and XR60 Routers
The AirLink XR90, XR80 and XR60 in-vehicle 5G routers are built for public safety fleets. All three are FirstNet Trusted™ for use on FirstNet, built with AT&T, and certified for both T-Mobile’s T-Priority and Verizon’s Frontline network slices, giving agencies dedicated, prioritized access to emergency network resources on either carrier.
FIPS 140-3 and Zero Trust
With the new AirLink OS 6.1 operating system release, compatible AirLink routers can meet the new Federal Information Processing Standards (FIPS) 140-3 through a software update, with no hardware replacement required. FIPS 140-3 replaces FIPS 140-2, whose certificates the National Institute of Standards and Technology’s Cryptographic Module Validation Program (CMVP) moved to its Historical List on Sept. 21, 2026. Semtech’s Zero Trust architecture builds on its recently announced integration with Palo Alto Networks Next-Generation Firewalls.
Fleet Management Built to Scale
New fleet management groups in Semtech’s AirLink Management Service platform let administrators set the software and configuration standard for each device model, check compliance across the fleet immediately and correct devices that are not configured to the standard. AirLink Manager / AirLink Mobility Manager 2.18.1 extends that flexibility further, adding on-premises management options across the full AirLink OS portfolio, so agencies can manage fleets in the cloud or air-gapped.
Semtech at IACP 2026 Booth 2964
Greg Hill, Semtech director of product management, AirLink Networking Solutions, and Dan Robinson, Semtech director of AirLink government sales and a former police chief, will present “5G Network Slicing, Satellite, Zero Trust: The New Building Blocks of Resilient Communications” on Monday, Oct. 26 from 3:15–3:45 PM EDT. At booth #2964, attendees can see an interactive network slicing demonstration, Semtech’s cloud and on-premises management platforms and integrations with in-vehicle technology providers.
About Semtech
Semtech Corporation (Nasdaq: SMTC) is a leading provider of high-performance semiconductors powering AI data center networking, IoT connectivity and intelligent connected 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, visit Semtech.com or follow us on LinkedIn or X.
Semtech, the Semtech logo and AirLink 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/20261024697343/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.
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, is adding new resilient communications building blocks to its AirLink® 5G Networking Solutions. Semtech will demonstrate the new capabilities in booth #2964 at the International Association of Chiefs of Police (IACP) conference in Orlando, Fla. First responders rel.
Key Takeaways SMTC's LoRa sales hit a record $58 million in Q2 fiscal 2027, up 58% year over year.SMTC expects LoRa revenues to grow 65% year over year in Q3 fiscal 2027, fueled by rising adoption.SMTC's LoRa Gen 4 and LoRa Plus, plus Amazon Sidewalk expansion, support growth across key markets.
Semtech Corporation (SMTC - Free Report) is seeing strong growth in its LoRa business as demand increases across industrial, commercial and consumer applications. LoRa-enabled net sales reached a record $58 million in the second quarter of fiscal 2027, up 31% sequentially and 58% year over year. Growth reflects wider adoption of LoRa across different applications, including smart homes, security systems and industrial monitoring. Management expects the business to maintain its momentum, with LoRa revenues projected to grow about 15% sequentially and 65% year over year in the third quarter of fiscal 2027.
Semtech is expanding its LoRa portfolio to address more applications. Its LoRa Gen 4 platform supports higher data speeds while maintaining low power consumption and long-range connectivity. These features can support new uses in smart homes, security and industrial applications. For example, LoRa-enabled sensors can help monitor industrial equipment and support predictive maintenance. In public safety, the technology can also enable sensors to transmit audio for AI-based verification instead of sending simple alerts.
Amazon Sidewalk is another potential growth driver for Semtech’s LoRa business. Following Ring’s launch of a new range of LoRa-based sensors in the United States, Amazon Sidewalk is expanding internationally, starting with Canada and Mexico, while Europe, Australia and Japan are expected to follow. This expansion could help increase the use of LoRa-based devices in consumer applications through Amazon’s network. Meanwhile, LoRa Plus is gaining traction in smart home and security markets, broadening the company’s opportunities beyond traditional industrial and commercial use cases.
Strong momentum in LoRaWAN, LoRa Plus and Amazon Sidewalk can also support SMTC’s future growth. Management expects LoRa revenues to grow at a rate above its previous 20% benchmark, supported by demand across these applications. With record revenues, new use cases and expanding distribution through Amazon Sidewalk, LoRa could become an increasingly important contributor to Semtech’s overall growth.
How Competitors Fare Against SMTCSemtech faces competition from Texas Instruments (TXN - Free Report) and NXP Semiconductors (NXPI - Free Report) across the broader industrial and Internet of Things (IoT) markets.
Texas Instruments offers Sub-1 GHz wireless microcontrollers and transceivers designed for applications such as smart meters, building automation and industrial sensors. These products provide long-range connectivity while using little power, making them an alternative for certain applications served by Semtech's LoRa technology. In the third quarter of 2026, TXN's revenues rose 28% year over year to $6.1 billion, while industrial revenues grew more than 40%. The company is expanding manufacturing capacity to support rising customer demand. These investments and its broad wireless product portfolio strengthen TXN's position in industrial and connected-device markets.
NXPI also offers low-power Sub-GHz wireless products for smart metering, home and building automation, asset tracking and industrial monitoring. Its OL2385 transceiver family supports multiple wireless protocols, including Sigfox and Wireless M-Bus, giving customers options for connected-device applications. NXPI's industrial and IoT business reported revenues of $755 million in the second quarter of 2026, up 38% year over year. Its newer processing products, including the i.MX, RT and MCX families, grew 40% year over year, reflecting strong demand for its industrial and IoT portfolio.
SMTC’s Price Performance, Valuation & EstimatesShares of SMTC have jumped 92.2% in the year-to-date period compared with the Zacks Semiconductor - Analog and Mixed industry’s return of 38.4%.
SMTC YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SMTC trades at a forward price-to-sales ratio of 7.36, lower than the industry’s average of 7.94.
SMTC Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SMTC’s fiscal 2027 earnings is pegged at $3.65 per share, revised up by 4.9% over the past seven days, indicating a 113.5% increase from the previous year.
Image Source: Zacks Investment Research
SMTC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Semtech raised FY27 revenue and EPS guidance and introduced a FY30 model, but shares dropped due to skepticism over long-term growth assumptions. FY27–28 growth is supported by backlog and customer engagements, while FY29–30 relies on broader market assumptions, making later projections more conservative. SMTC is shifting toward higher-margin data-center and LoRa products, divesting lower-margin cellular, and targeting a 70% gross margin by FY30.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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State of Alaska Department of Revenue trimmed its holdings in Semtech Corporation (NASDAQ: SMTC) by 33.5% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,824 shares of the semiconductor company's stock after selling 4,442 shares during the quarter. State
Timothy Arcuri from UBS, perhaps the most accurate analyst on Wall Street, has issued multiple rating revisions since October began, with a handful of reconsidered equities standing out for the sheer size of the forecasted upside.
Specifically, the Wall Street analyst – rated number 1 out of the 12,522 represented on the stock analysis platform TipRanks and boasting a 74% ‘success rate’ – revised his price target for eight companies, assigned six ‘Buy’ recommendations, and estimated three firms can rise more than 60% in the next 12 months.
Wall Street’s No. 1 analyst’s October stock rating and price target revisions. Source: TipRanks
Why Lam Research stock is a buy before November starts
The first company that appears best invested in before November is Lam Research (NASDAQ: LRCX).
Indeed, Arcuri reiterated his previous ‘Buy’ rating and $425 LRCX stock forecast on October 12, meaning that, in his estimate, the equity can soar 61.02% from its latest closing price of $263.64.
LRCX stock price one-month chart. Source: Google
Notably, the company, which focuses on wafer-fabrication equipment and related services for the semiconductor industry, is scheduled to report its earnings on October 21, meaning investors could take advantage of the volatility that could surround the filing.
Finally, along with LRCX stock being comparatively cheap at press time thanks to the brutal correction that has been affecting big tech since October started, traders can have a relatively high degree of confidence in Arcuri’s judgment.
Indeed, the average return from his past recommendations regarding Lam Research shares stands at a respectable 42.35%.
Why Semtech stock is a buy before November starts
Semtech (NASDAQ: SMTC), another company involved with the wider semiconductor industry, boasts the second-highest predicted upside out of all the firms revisited by the UBS analyst in October – a 68.21% rally from $136.73 at the latest close to $230 in 12 months’ time.
SMTC stock price one-month chart. Source: Google
SMTC is in a similar position to LRCX in terms of its recent performance, and Arcuri has, so far, had a comparable – though stronger – average return on his predictions regarding the supplier of analog and mixed-signal semiconductors and advanced algorithms.
Indeed, the Wall Street expert has historically been correct regarding Semtech shares 89% of the time for an average 85.42% return, making the technology firm a price candidate for investing before October ends.
Why Micron stock is a buy before November starts
Lastly, the company with the highest predicted upside is simultaneously arguably the most famous of the three: Micron (NASDAQ: MU).
On October 2, UBS’ Timothy Arcuri estimated that MU stock can soar to $1,625 within the next 12 months thanks to the value of memory in an artificial intelligence (AI) inference environment and the company’s generally improving fundamentals.
Considering that Micron shares fell 17.49% month-to-date and 18.24% since the Wall Street analyst made his forecast, a MU investment made close to press time could soar 84.90% in the coming 52 weeks.
MU stock price one-month chart. Source: Google
Additionally, much like with LRCX and SMTC, Arcuri has been rather successful when predicting the memory giant’s future performance, and his recommendations regarding the company carry an average return of 111.05%.
Assenagon Asset Management S.A. grew its stake in shares of Semtech Corporation (NASDAQ:SMTC – Free Report) by 56.3% in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 546,422 shares of the semiconductor company’s stock after purchasing an additional 196,734 shares during the quarter. Assenagon Asset Management S.A. owned approximately 0.59% of Semtech worth $97,454,000 at the end of the most recent quarter.
Several other large investors also recently modified their holdings of the business. Leonteq Securities AG increased its stake in shares of Semtech by 11.2% during the first quarter. Leonteq Securities AG now owns 1,171 shares of the semiconductor company’s stock valued at $90,000 after purchasing an additional 118 shares in the last quarter. Corient Private Wealth LP boosted its stake in Semtech by 4.0% in the 2nd quarter. Corient Private Wealth LP now owns 3,147 shares of the semiconductor company’s stock worth $515,000 after purchasing an additional 122 shares during the period. ABS Investment Management LLC purchased a new stake in Semtech during the 2nd quarter valued at approximately $178,035,000. FNY Investment Advisers LLC grew its holdings in Semtech by 900.0% during the 2nd quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock valued at $32,000 after buying an additional 180 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Semtech during the second quarter valued at approximately $32,000.
Analyst Upgrades and Downgrades Several research firms have recently commented on SMTC. New Street Research set a $230.00 target price on shares of Semtech in a report on Thursday, August 20th. TD Cowen reiterated a “buy” rating and issued a $215.00 price target on shares of Semtech in a report on Friday. Needham & Company LLC reiterated a “buy” rating and issued a $200.00 price target on shares of Semtech in a report on Wednesday, August 26th. Robert W. Baird boosted their price target on shares of Semtech from $225.00 to $300.00 and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Finally, Benchmark restated a “buy” rating on shares of Semtech in a research report on Thursday, August 20th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $213.11.
View Our Latest Analysis on SMTC Insider Transactions at Semtech In other Semtech news, Director Rodolpho C. Cardenuto sold 5,321 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $165.00, for a total transaction of $877,965.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Jason Elliot Green sold 2,766 shares of the firm’s stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $190.35, for a total transaction of $526,508.10. Following the completion of the sale, the executive vice president owned 7,367 shares in the company, valued at $1,402,308.45. This represents a 27.30% 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. In the last quarter, insiders sold 13,737 shares of company stock worth $2,267,877. Company insiders own 0.44% of the company’s stock.
Semtech Trading Down 5.2% NASDAQ:SMTC opened at $136.73 on Friday. The firm has a 50-day simple moving average of $156.97 and a 200-day simple moving average of $139.21. Semtech Corporation has a one year low of $60.28 and a one year high of $201.99. The firm has a market cap of $12.76 billion, a P/E ratio of 90.55 and a beta of 2.41. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.31 and a current ratio of 1.70.
Semtech (NASDAQ:SMTC – Get Free Report) last released its quarterly earnings data on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. The firm had revenue of $341.87 million for the quarter, compared to the consensus estimate of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The company’s quarterly revenue was up 32.7% on a year-over-year basis. During the same period last year, the firm earned $0.41 earnings per share. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Equities analysts anticipate that Semtech Corporation will post 2.65 EPS for the current fiscal year.
Semtech News Roundup Here are the key news stories impacting Semtech this week:
Positive Sentiment: Semtech raised its near-term Q3 guidance and presented a longer-term outlook through 2030, helping support a recovery in the stock. Northland Securities upgraded SMTC from “market perform” to “outperform” and set a $186 price target. Semtech rises as it boosts Q3 guidance, offers up 2030 outlook; Northland upgrades Positive Sentiment: The company expects data-center revenue to more than double in fiscal 2028 and 2029. Baird reaffirmed its “outperform” rating and $300 target, citing record bookings and strong two-year visibility from demand for copper, fiber and optical connectivity used in AI infrastructure. Semtech eyes data center revenue surge as AI infrastructure spending grows Positive Sentiment: TD Cowen maintained a “buy” rating with a $215 price target, while BMO raised its target to $230. These targets indicate analysts see substantial upside if Semtech delivers on its data-center growth plans. Positive Sentiment: Investors purchased approximately 6,179 SMTC call options, about 43% above average daily volume, signaling increased speculative interest in a rebound. Neutral Sentiment: Stifel lowered its price target from $220 to $200 but retained a “buy” rating, suggesting valuation or execution concerns while preserving a positive long-term view. Semtech Stock Rebounds as Wall Street Turns Focus to Near-Term Earnings Targets Negative Sentiment: Despite the improved outlook, some investors viewed SMTC as expensive after its roughly eightfold run over the past year. That valuation concern likely contributed to selling pressure around analyst day and could limit further gains unless earnings growth accelerates. Semtech Stock Looks Expensive After Its 8x Run Semtech Company Profile (Free Report)
Semtech Corporation is a global semiconductor and technology company that designs and supplies analog and mixed-signal products for communications, industrial, automotive, consumer, and infrastructure applications. Its solutions are used to manage, protect, connect, and transmit data in electronic systems.
The company’s portfolio includes signal-integrity products, protection devices, power-management components, optical and high-speed connectivity solutions, and video-processing technologies.
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shares are trading lower despite an improved Q3 outlook that surpasses FactSet consensus estimates. The company is also projecting stronger near-term margins alongside an ambitious financial framework for fiscal year 2030. This update highlights significant growth in data centers and operational leverage, although long-term goals remain aspirational and hinge on successful execution in an increasingly AI-driven market.
Adjusted diluted EPS guidance has been raised to $1.12–$1.16 from $1.02–$1.08, exceeding the $1.06 FactSet consensus. Revenue guidance has increased to $415–$420 million from $405–$415 million, surpassing the $410.69 million consensus. Adjusted gross-margin guidance is now projected at 59.0%, compared to 58.3%, while adjusted operating-margin guidance has improved to 33.0% from 31.0%. For FY30, Semtech targets $3.2 billion in revenue and $2.1 billion in data-center sales, indicating a 38% consolidated and 75% data-center compound annual growth rate from FY26 to FY30. Data centers are expected to represent about two-thirds of total sales, with LoRa revenue projected to grow at 30% annually. The financial framework aims for a 70% adjusted gross margin, 48-50% adjusted operating margin, and adjusted diluted EPS of $12.40-$13.00, with an anticipated free cash flow margin of 35% generating approximately $1.12 billion annually. The planned divestiture of cellular modules will sharpen SMTC’s focus, although risks remain due to supplier capacity, product development, customer concentration, and the cyclicality of AI demand.Analyst insights suggest that Semtech’s immediate achievement lies in the combination of higher sales expectations and an increase in its adjusted operating-margin midpoint. While this lays a solid foundation for earnings growth, the FY30 model necessitates sustained expansion beyond a single strong quarter. The portfolio shift enhances the margin profile, but increased exposure to data centers raises reliance on AI infrastructure spending and the successful commercialization of products. The recent decline in stock price does not definitively indicate that the update was fully anticipated or reveal any specific company disappointments. The key financial challenge for Semtech is to convert rapid growth into sustainable margins and cash flow while addressing the innovation and supply-chain needs essential for reaching its targets.
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Semtech, the semiconductor company, is targeting more than doubling its data center revenue in financial 2028 and 2029, as Baird reaffirmed its 'outperform' rating and $300 price target.
Baird said record bookings and strong visibility over the next 2 years supported the growth outlook, with Semtech positioned to benefit from rising demand for copper, fiber and optical connectivity.
The broker highlighted accelerating adoption of linear signal-integrity solutions, which reduce power consumption, latency, equipment size and costs compared with conventional retimed links.
Semtech’s CopperEdge portfolio includes a 224-gigabits-per-second redriver already shipping, while management described its 336-gigabits-per-second device as the only solution currently performing in a hyperscaler application.
The 336-gigabits-per-second product consumes less than one-tenth of the power required by a retimed alternative, while extending copper connectivity for links between processors and other components.
Semtech’s FiberEdge business has also increased its market share in 1.6-terabit connectivity to more than 50%, up from 18% at 800 gigabits, according to the broker’s summary.
Baird expects the company to capture more value as data centers shift towards optical and photonic technologies to support faster connection speeds and greater bandwidth.
Semtech’s photonics offering could save 40-50 milliwatts per 800-gigabit optical module, while its vertically integrated US supply chain supports opportunities in short-distance optical connections within data centers.
The broker also identified long-range radio technology LoRa as a significant growth driver, with projected annual sales growth of 30% implying revenue above $500 million by calendar 2029.
Semtech’s financial framework for 2030 targets $3.2 billion in total revenue, excluding current sales from its system-on-module business, equivalent to a compound annual growth rate of 38% from financial 2026.
Data center revenue is expected to reach $2.1 billion by financial 2030, representing annualised growth of 75%, while management is targeting an adjusted gross margin of 70%.
The company is also targeting an adjusted operating margin of 48-50%, non-GAAP earnings per share of $12.40-$13 and a free cash flow margin of 35% by financial 2030.
Baird retained its Outperform rating on Semtech, citing demand for optical connectivity, gains in active copper cable and internet-of-things markets, and an improving revenue mix.
Editorial note: The source material gives two different periods for the data center revenue doubling forecast: financial 2028 and 2029 in the opening summary, but financial 2027 and 2028 in the 2030 framework section. The relevant forecast periods should be confirmed before publication.
Semtech Stock Rallies on Strong Q2 Results and Raised GuidanceSemtech NASDAQ: SMTC raised its fiscal third-quarter 2027 outlook and outlined long-term financial targets through fiscal 2030, citing growth in data center connectivity and LoRa products, higher-margin portfolio mix and a substantially improved balance sheet.
During the company’s analyst day, Semtech said it expects fiscal Q3 2027 revenue of $417.5 million at the midpoint, representing 56% year-over-year growth. The outlook calls for consolidated adjusted gross margin of 59%, or 64% excluding the cellular modules business that Semtech expects to divest, as well as adjusted operating margin of 33% and adjusted diluted earnings per share of $1.14.
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Semtech’s Explosive Rally May Only Be Getting StartedThe company said it continues to expect regulatory clearances for the cellular modules divestiture and anticipates closing the transaction in its fiscal fourth quarter.
Balance Sheet Transformation
Semtech highlighted progress in reducing leverage and interest expense since fiscal 2024. The company said net cash interest costs were $82 million in fiscal 2024, while free cash flow was negative $123 million. As of the second quarter of fiscal 2027, annual free cash flow was $193 million, according to the presentation.
How Semtech’s Data Center Chips Are Powering the AI BoomNet debt declined to $299 million at the end of Q2 2027 from $1.3 billion at the end of fiscal 2024, while net leverage fell to 1.1 times from 10.5 times. Semtech reported $503 million in debt and $204 million in cash and cash equivalents at the end of the quarter, alongside $357 million of availability under its line of credit.
The company said $100.5 million of debt comes due in fiscal 2028, with no scheduled maturities in fiscal 2029 or fiscal 2030. The remaining $402.5 million is due in fiscal 2031. Semtech expects its net leverage ratio to move below 1 times, with a longer-term maintenance target below zero net leverage.
Data Center and LoRa Drive Portfolio Shift
Semtech said data center and LoRa each represented about 7% of total revenue in fiscal 2024. For fiscal Q3 2027, excluding the cellular modules business, the company expects data center products to account for 40% of revenue and LoRa products to represent 19%.
Data center revenue was $61 million for all of fiscal 2024 and is expected to reach $145 million in fiscal Q3 2027 alone. LoRa revenue also totaled $61 million for fiscal 2024 and is expected to be $68 million in the third quarter of fiscal 2027.
Hong Hou, Semtech’s president and chief executive officer, said the company sees expanding LoRa opportunities across smart buildings, security, drone control, edge AI connectivity and Amazon Sidewalk. He said next-generation LoRa products are intended to offer lower standby current, higher data-transmission rates and software development kits designed to facilitate deployment.
Hou also discussed demand for connectivity solutions in AI infrastructure. He said near-package optics, or NPO, is expected to begin entering volume production near the end of next year, followed by co-packaged optics, or CPO. He described NPO as offering much of the power-saving benefit of CPO while retaining flexibility through an open socket architecture.
Imran Sherazi, senior vice president and general manager of Semtech’s Signal Integrity Products Group, said the company is focused on supplying linear redrivers across formats, including active copper cables, flyover cables and line-card applications. Sherazi said the company increased its share in a cited market from 18% to more than 50% and intends to continue pursuing share gains.
Fiscal 2030 Framework
Semtech expects revenue to reach $3.2 billion in fiscal 2030, implying a 38% compound annual growth rate from fiscal 2026. The fiscal 2026 base excludes $166 million in cellular module revenue associated with the business slated for divestiture.
Data center revenue is expected to compound at a 75% rate to $2.1 billion by fiscal 2030.
LoRa revenue is expected to compound at a 30% rate through fiscal 2030.
Adjusted gross margin is targeted at 70% in fiscal 2030.
Adjusted operating margin is expected to be 48% to 50%.
Free cash flow is expected to equal 35% of revenue.
Adjusted diluted EPS is projected at $12.40 to $13, representing a 64% to 66% compound annual growth rate.
The company said its fiscal 2030 EPS framework assumes a 20% non-GAAP tax rate and 104 million weighted-average diluted shares outstanding.
Investment and Capital Allocation
Semtech said research and development spending increased 27% between fiscal 2025 and the trailing 12 months ended in Q2 2027, while selling, general and administrative expense increased 8% over the same period. The company said it has focused R&D spending on customer-aligned, higher-return projects while maintaining an affordability framework.
Its capital allocation priorities are organic R&D investment, capability-driven acquisitions and balance-sheet strength. Semtech cited its March acquisition of Semtech Photonics Products, also referred to as HieFo, as an example of its approach. The acquisition added domestic indium phosphide manufacturing expertise and expanded the company’s AI connectivity portfolio into photonics, according to the presentation.
Hou said the company’s objective is to pursue high-bandwidth, low-power and low-latency connectivity opportunities while expanding earnings and cash flow through a more differentiated portfolio.
About Semtech (NASDAQ:SMTC)Semtech Corporation is a global semiconductor and technology company that designs and supplies analog and mixed-signal products for communications, industrial, automotive, consumer, and infrastructure applications. Its solutions are used to manage, protect, connect, and transmit data in electronic systems.
The company's portfolio includes signal-integrity products, protection devices, power-management components, optical and high-speed connectivity solutions, and video-processing technologies.
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].
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MIGDAL HAEMEK, Israel & CAMARILLO, Calif.--(BUSINESS WIRE)--Tower Semiconductor and Semtech Expand SiGe Partnership to Scale Power-Efficient Analog Connectivity for Data Centers.
Representative Gilbert Ray Cisneros, Jr. (Democratic-California) recently bought shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM). In a filing disclosed on October 12th, the Representative disclosed that they had bought between $1,001 and $15,000 in Taiwan Semiconductor Manufacturing stock on September 22nd. The trade occurred in the Representative’s “150 MAIN STREET TRUST > BANK OF AMERICA” account.
Representative Gilbert Ray Cisneros, Jr. also recently made the following trade(s):
Purchased $15,001 – $50,000 in shares of Benchmark Electronics (NYSE:BHE) on 10/1/2026.
Sold $1,001 – $15,000 in shares of Oxford Industries (NYSE:OXM) on 9/29/2026.
Sold $1,001 – $15,000 in shares of Semtech (NASDAQ:SMTC) on 9/29/2026.
Sold $15,001 – $50,000 in shares of ITT (NYSE:ITT) on 9/29/2026.
Sold $1,001 – $15,000 in shares of BridgeBio Pharma (NASDAQ:BBIO) on 9/29/2026.
Purchased $1,001 – $15,000 in shares of Tandem Diabetes Care (NASDAQ:TNDM) on 9/29/2026.
Purchased $1,001 – $15,000 in shares of Cytokinetics (NASDAQ:CYTK) on 9/29/2026.
Purchased $1,001 – $15,000 in shares of Ultragenyx Pharmaceutical (NASDAQ:RARE) on 9/29/2026.
Purchased $1,001 – $15,000 in shares of YETI (NYSE:YETI) on 9/29/2026.
Sold $1,001 – $15,000 in shares of AtriCure (NASDAQ:ATRC) on 9/29/2026.
Taiwan Semiconductor Manufacturing Trading Up 0.2%
NYSE:TSM opened at $445.34 on Wednesday. The company has a market cap of $2.31 trillion, a P/E ratio of 32.06, a price-to-earnings-growth ratio of 0.98 and a beta of 1.37. Taiwan Semiconductor Manufacturing Company Ltd. has a twelve month low of $266.82 and a twelve month high of $487.47. The business has a 50 day moving average price of $434.46 and a two-hundred day moving average price of $415.74. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14.
Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last posted its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. The company had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. As a group, analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.60 EPS for the current fiscal year.
Taiwan Semiconductor Manufacturing Cuts Dividend
The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be given a dividend of $1.0854 per share. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date of this dividend is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s payout ratio is currently 24.96%.
Insider Buying and Selling at Taiwan Semiconductor Manufacturing
In other news, VP Lipen Yuan purchased 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were bought at an average cost of $74.50 per share, with a total value of $74,500.00. Following the completion of the transaction, the vice president directly owned 6,000 shares of the company’s stock, valued at approximately $447,000. This trade represents a 20.00% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Shyue-Shyh Lin purchased 2,000 shares of the business’s stock in a transaction that occurred on Sunday, July 19th. The shares were purchased at an average price of $71.71 per share, for a total transaction of $143,420.00. Following the completion of the acquisition, the vice president owned 28,269 shares of the company’s stock, valued at $2,027,169.99. The trade was a 7.61% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have purchased 16,043 shares of company stock worth $1,185,746. Corporate insiders own 1.11% of the company’s stock.
Analyst Ratings Changes
A number of equities analysts recently weighed in on the stock. Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. TD Cowen lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research report on Friday, July 17th. Barclays lifted their price target on Taiwan Semiconductor Manufacturing from $650.00 to $665.00 and gave the stock an “overweight” rating in a report on Tuesday, October 6th. Finally, Stifel Nicolaus assumed coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They set a “buy” rating and a $515.00 price target on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, Taiwan Semiconductor Manufacturing currently has a consensus rating of “Buy” and a consensus price target of $524.89.
Check Out Our Latest Research Report on Taiwan Semiconductor Manufacturing
Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:
Positive Sentiment: Analysts expect another powerful quarter, with estimates cited at approximately $46.7 billion in revenue and $23.4 billion in profit. Recent monthly revenue data and accelerating growth have reinforced expectations that AI demand is translating into substantial sales and earnings gains. TSMC Eyes $23.4 Billion Q3 Profit on $46.7 Billion Revenue
Positive Sentiment: TSMC’s dominant position in contract manufacturing—especially its reported 90% share of advanced-chip production—continues to support pricing power, strong customer relationships and long-term AI infrastructure growth. Reports also point to higher chip prices and expanding capacity as potential drivers of stronger 2027 results. TSMC Earnings Preview
Positive Sentiment: Erste Group raised its TSMC EPS forecasts to $16.92 for fiscal 2026 and $22.26 for fiscal 2027, above the current-year consensus of $16.56. The revisions support the bullish view that earnings growth may justify the stock’s premium valuation.
Neutral Sentiment: October 15 earnings are the immediate decision point. Investors are looking for evidence that demand remains ahead of supply, along with updated capital-spending and capacity guidance. The report could also serve as an important read-through for Nvidia and the broader AI semiconductor trade. Dear TSMC Stock Fans, Circle Oct. 15 on Your Calendar
Negative Sentiment: Investor expectations are unusually high after a major rally: TSMC trades at roughly 32 times earnings and has risen near its annual high. Analysts caution that heavy capital expenditures could pressure free cash flow, while any earnings or guidance shortfall could trigger profit-taking.
Negative Sentiment: A broader pullback in semiconductor-equipment stocks shows that investors are locking in gains across the AI supply chain. That risk could weigh on TSMC if enthusiasm fades or concerns grow that AI spending has already been fully priced in. Semiconductor Equipment Stocks Slide as Investors Take Profits
Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing
Several institutional investors and hedge funds have recently modified their holdings of TSM. Evolution Wealth Management Inc. raised its stake in shares of Taiwan Semiconductor Manufacturing by 257.7% in the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 67 shares during the last quarter. Cedar Mountain Advisors LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 88.2% during the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock valued at $31,000 after buying an additional 30 shares during the last quarter. Financial Freedom LLC bought a new stake in Taiwan Semiconductor Manufacturing during the first quarter worth $32,000. Markowski Investments bought a new stake in Taiwan Semiconductor Manufacturing during the second quarter worth $33,000. Finally, Lam Group Inc. purchased a new stake in Taiwan Semiconductor Manufacturing in the 1st quarter valued at $34,000. 16.51% of the stock is currently owned by institutional investors and hedge funds.
About Representative Cisneros
Gil Cisneros (Democratic Party) is a member of the U.S. House, representing California’s 31st Congressional District. He assumed office on January 3, 2025. His current term ends on January 3, 2027.
Cisneros (Democratic Party) is running for re-election to the U.S. House to represent California’s 31st Congressional District. He declared candidacy for the 2026 election.
Gil Cisneros served in the U.S. Navy as a supply officer from 1994 to 2004. Cisneros earned a bachelor’s degree in political science from George Washington University in 1994, a master’s in business administration from Regis University in 2002, and a master’s degree in urban education policy from Brown University in 2015. His career experience includes working as a logistics manager for Frito-Lay. In 2010, Cisneros won the lottery and became involved in activism and philanthropy, founding a scholarship program for local high school students. In 2021, President Joe Biden (D) appointed Cisneros as under secretary of defense for personnel and readiness.
Taiwan Semiconductor Manufacturing Company Profile
(Get Free Report)
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.
TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.
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, /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].
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Key Takeaways SMTC's data-center revenues hit a record $100 million in Q2 fiscal 2027, rising 91% year over year. SMTC expects 1.6T CopperEdge and FiberEdge products to contribute over 50% of Q3 FY27 data-center revenues. SMTC's fiscal 2027 backlog is fully booked, while over 70% of its fiscal 2028 target is already covered. Semtech Corporation (SMTC - Free Report) is seeing strong demand for its data center products as hyperscalers increase spending on AI infrastructure. The company’s data center revenues reached a record $100 million in the second quarter of fiscal 2027, up 39% sequentially and 91% year over year. Growth was driven by continued strength in 800G products, along with the ramp of 1.6T CopperEdge and FiberEdge solutions. Management expects this momentum to continue, with data center revenues projected to increase 45% sequentially and 160% year over year in the third quarter of fiscal 2027.
The 1.6T transition could become an important growth driver for Semtech. Management expects 1.6T FiberEdge and CopperEdge products to account for more than 50% of total data center revenues in the third quarter of fiscal 2027. Semtech is also gaining market share in optical connectivity, where its FiberEdge business has grown from about 18% market share in 800G two years ago to more than 50%. Further, the company expects its 1.6T FiberEdge market share to exceed 50% by the end of fiscal 2027.
The company is also preparing for the next stage of data center growth. Semtech is expanding its photonics portfolio through gain chips, high-power CW lasers, semiconductor optical amplifiers and photodiodes. These products are aimed at higher-speed applications, including 3.2T transceivers and co-packaged optics. Management expects its content per transceiver to increase from high single-digit dollars to high double-digit dollars as data center speeds move from 800G to 3.2T.
Strong customer demand supports SMTC’s prospects as well, with the company reporting that its backlog for the remainder of fiscal 2027 was fully booked and more than 70% of its target for fiscal 2028 was already covered. Management is also working with manufacturing partners to secure additional capacity for fiscal 2028 and beyond. If it can meet customer requirements and maintain its product momentum, the 1.6T ramp could remain an important driver of Semtech’s data center growth over the next several quarters.
How Competitors Fare Against SMTCSemtech faces stiff competition from Marvell Technology (MRVL - Free Report) and MACOM Technology Solutions (MTSI - Free Report) in high-speed data center connectivity.
MRVL offers optical digital signal processors, switching products, transimpedance amplifiers (TIAs) and drivers for high-speed optical connectivity. Its data center revenues reached a record $2.17 billion in the second quarter of fiscal 2027, up 46% year over year. Demand for its 800G products remains strong, while its 1.6T business is ramping rapidly. The company now expects fiscal 2027 revenues to grow about 45% year over year to roughly $12 billion, with data center revenues up about 60%.
MTSI is also expanding its presence in high-speed data center connectivity. Its portfolio includes 800G and 1.6T products, linear equalizers for copper interconnects, high-speed TIAs and drivers, and photodetectors. Data center remained MTSI’s fastest-growing business in the third quarter of fiscal 2026, with revenues of $137.6 million, up about 40% sequentially and 81.5% year over year. The company reported a record book-to-bill ratio of 1.6 in the third quarter of fiscal 2026 and expects fiscal 2026 data center growth of about 74%.
SMTC’s Price Performance, Valuation & EstimatesShares of SMTC have jumped 127.1% in the year-to-date period compared with the Zacks Semiconductor - Analog and Mixed industry’s return of 45.2%.
SMTC YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SMTC trades at a forward price-to-sales ratio of 9.82, higher than the industry’s average of 8.42. The Zacks Value Score of F suggests that SMTC stock is overvalued.
SMTC Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SMTC’s fiscal 2027 earnings is pegged at $3.48 per share, unchanged over the past 30 days, indicating a 103.5% increase from the previous year.
Image Source: Zacks Investment Research
SMTC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Multi-year agreement expands dedicated capacity across Tower's global fab network to support the companies’ growth in optical and copper interconnects for next-generation AI infrastructure
MIGDAL HAEMEK, Israel, and Camarillo, California, Oct. 13, 2026 -- Tower Semiconductor (Nasdaq/TASE: TSEM), the leading foundry for high-value analog semiconductor solutions, and 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 expanded multi-year agreement that builds on the companies’ 20-year partnership. Under the agreement, Semtech will invest in securing dedicated silicon germanium (SiGe) capacity at Tower in support of its strong design wins and demand for AI Data Center optical interconnect components.
AI’s next constraint is power, and a growing share of that power is spent moving data rather than computing it. As AI clusters scale across racks, rows and campuses, the energy cost of moving each bit is becoming central to how much useful work each accelerator can deliver. Each step in the speed roadmap, from 800G to 1.6T and on to 3.2T, raises the requirements for bandwidth, reach and power per bit, and increases the importance of the high-speed analog front end that drives and receives the signal.
Semtech’s signal integrity portfolio, including transimpedance amplifiers (TIAs), modulator and laser drivers and linear equalizers, is built on Tower’s SiGe process technology and serves fully retimed optics (FRO), linear pluggable optics (LPO), linear receive optics (LRO), near-packaged optics (NPO), eXtra-dense pluggable optics (XPO), linear equalizers on PCB and active copper cables (ACC). Semtech believes that, together, these products position it to address copper links within the rack and optical links across the data center as the industry moves to its next generation of architectures.
A testament to the results of the partnership is Semtech’s recent Optical Component Innovation (Chip/Wafer) award at the European Conference on Optical Communication (ECOC) 2026. The award recognizes Semtech’s 224 Gbps per Lane TIA Family for Linear Pluggable Optics built on Tower’s leading-edge SiGe technology. Tower and Semtech continue to work closely not only on capacity but also on joint technology roadmap designed to secure product leadership in multi-generational AI data center interconnects.
The secured capacity spans Tower’s fabs in the United States, Israel and Japan, adding supply resilience and geographic diversification to Semtech’s manufacturing strategy. Building on current production, the agreement gives Semtech additional supply assurance as demand for its SiGe-based products is expected to grow across a broadening base of customer programs and end markets.
“Connectivity is now a primary factor in how far AI systems can scale,” said Hong Hou, Semtech President and Chief Executive Officer. “Our customers are scaling interconnect bandwidth quickly and at massive scale. Meeting that demand requires long-term capacity planning and commitment with our manufacturing partners. Tower has been a trusted partner to Semtech for 20 years, and we are very pleased with our partnership agreement that secures dedicated SiGe capacity across three regions to grow across copper and optical interconnects, from 800G and 1.6T today through 3.2T and beyond.”
“It is a source of profound satisfaction that our partnership with Semtech has grown so strong,” said Russell Ellwanger, Chief Executive Officer, Tower Semiconductor. “Together, we are driving truly accretive, platform-level solutions that help advance their designs delivering best-in-class figures of merit across present-generation, next-generation and N+2 technologies. By qualifying these solutions well ahead of market need, we both stand fully prepared for immediate implementation as the market moves into these generations. In doing so, we are the key drivers of the technologies carrying the market forward, ensuring a continual expansion of our already leading market share in optical transceiver connectivity within this high-growth market."
For additional information about Tower’s SiGe and SiPho technology platforms, visit here.
About Tower Semiconductor
Tower Semiconductor Ltd. (NASDAQ/TASE: TSEM), the leading foundry of high-value analog semiconductor solutions, provides technology, development, and process platforms for its customers in growing markets such as consumer, industrial, automotive, mobile, infrastructure, medical and aerospace and defense. Tower Semiconductor focuses on creating a positive and sustainable impact on the world through long-term partnerships and its advanced and innovative analog technology offering, comprised of a broad range of customizable process platforms such as SiPho, SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, displays, and integrated power management (BCD and 700V). Tower Semiconductor also provides world-class design enablement for a quick and accurate design cycle as well as process transfer services including development, transfer, and optimization, to IDMs and fabless companies. To provide multi-fab sourcing and extended capacity for its customers, Tower Semiconductor currently owns one operating facility in Israel (200mm), two in the U.S. (200mm), and two in Japan (200mm and 300mm) which it owns through its 51% holdings in TPSCo and shares a 300mm facility in Agrate, Italy with STMicroelectronics. For more information, please visit: www.towersemi.com.
Tower Semiconductor’s Safe Harbor Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements. A complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this press release or which may otherwise affect Tower’s business is included under the heading “Risk Factors” in Tower’s most recent filings on Forms 20-F, F-3, F-4 and 6-K, as were filed with the Securities and Exchange Commission (the “SEC”) and the Israel Securities Authority. Tower does not intend to update, and expressly disclaim any obligation to update, the information contained in this release.
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’s Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or to Semtech's future financial performance, including statements regarding the anticipated benefits of the expanded agreement with Tower, the expected expansion, timing and availability of dedicated SiGe manufacturing capacity, anticipated demand for Semtech's products and growth in AI data center interconnect markets, Semtech's design win pipeline, and the companies’ technology roadmaps, which reflect the current analysis of existing information. Statements containing words such as “believe,” “will,” “expect,” “anticipate,” “intend,” “see,” “designed,” or “positioned,” or other similar expressions constitute forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause Semtech's actual results, performance, and achievements to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to: Tower's ability to install equipment and expand SiGe manufacturing capacity at its fabs on the anticipated timeline, or at all, including as a result of circumstances outside of Tower's control; the risk that demand for Semtech's SiGe-based products does not develop as anticipated or that Semtech does not fully utilize the capacity reserved for it under the agreement; the risk that Semtech's design wins do not result in production orders or revenue at the levels or on the timing anticipated; the pace of AI data center investment and the rate of adoption of next-generation interconnect speeds; Semtech's reliance on Tower for the manufacture of its SiGe-based products and the concentration of that manufacturing in a limited number of facilities, including in Israel; competitive pressures and pricing; supply chain constraints; the impact of adverse changes to general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions, and the impact of tariffs or retaliatory tariffs; and the other factors and risks set forth in Semtech's filings with the U.S. Securities and Exchange Commission, including (i) the “Risk Factors” section of Semtech’s Annual Report on Form 10-K for the fiscal year ended January 25, 2026 and (ii) subsequent Quarterly Reports on Form 10-Q. The forward-looking statements and information contained herein speak only as of the date of this release. Semtech undertakes no obligation to update any forward-looking statements or information to reflect events or circumstances after the date of this press release, except as required by applicable law.
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
The Dow Jones Industrial Average (^DJI +0.38%) rose 0.38% to 51,851 as investors favored value-oriented sectors, while the S&P 500 (^GSPC -0.06%) slipped 0.06% to 7,807 and the Nasdaq Composite (^IXIC -0.44%) fell 0.44% to 27,246 on technology sector weakness.
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Gold prices fell 0.64% to $4,167.56 as of U.S. market close, and the 10-Year Treasury yield edged up 0.01% to 5.24%. Communication services and consumer defensive stocks led all sectors, while technology stocks lagged.
Today's biggest movesSalesforce gained on an analyst upgrade, and Figs surged over 12% as the healthcare apparel attracted further investor attention -- the stock is now up over 30% in the past five days. Sandisk tumbled more than 6% on memory competition concerns, and Lumentum Holdings fell almost 10%, erasing last week's gains as investors retreated from artificial intelligence (AI) industry stocks. On the flip side, Meta Platforms shares increased following the launch of Muse Wonder, its latest AI model.
What this means for investorsIt's the fourth anniversary of the S&P 500, which has gained over 120% since Oct. 12, 2022, and investors will be watching the final reporting season of the year for resilience and signs that the rally still has further to run. Financial stocks gained ahead of key earnings from major banks this week. It will be a high-impact week, with key inflation data due and oil prices rising. Bond markets were closed today.
Against that backdrop, Tech stocks came under pressure, weighing on the Nasdaq while the Dow gained as investors rotated into cautious sectors. Semiconductor names like like Marvell Technology (MRVL -3.42%) and Semtech (SMTC -10.15%) declined on renewed valuation jitters.
Emma Newbery has positions in Marvell Technology. The Motley Fool has positions in and recommends Bristol Myers Squibb, Figs, Lumentum, Marvell Technology, Meta Platforms, and Salesforce. The Motley Fool has a disclosure policy.
Shares of Semtech Corporation (NASDAQ:SMTC – Get Free Report) traded down 7.8% on Monday following insider selling activity. The stock traded as low as $175.50 and last traded at $172.7080. Approximately 492,665 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 2,800,300 shares. The stock had previously closed at $187.30.
Specifically, EVP Jason Elliot Green sold 2,766 shares of the firm’s stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $190.35, for a total value of $526,508.10. Following the completion of the sale, the executive vice president directly owned 7,367 shares in the company, valued at approximately $1,402,308.45. This trade represents a 27.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Analyst Ratings Changes
Several research analysts have recently commented on SMTC shares. Seaport Research Partners began coverage on Semtech in a research note on Tuesday, September 22nd. They set a “buy” rating and a $200.00 target price for the company. TD Cowen increased their price target on Semtech from $210.00 to $215.00 and gave the company a “buy” rating in a research note on Monday, June 22nd. Stifel Nicolaus raised their price target on Semtech from $188.00 to $220.00 and gave the company a “buy” rating in a report on Monday, October 5th. BMO Capital Markets initiated coverage on shares of Semtech in a research report on Wednesday, August 26th. They set an “outperform” rating and a $155.00 price objective for the company. Finally, Northland Securities cut shares of Semtech from an “outperform” rating to a “market perform” rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $208.06.
Get Our Latest Report on SMTC
Semtech Price Performance
The company’s fifty day moving average price is $154.19 and its 200 day moving average price is $136.82. The company has a market capitalization of $16.28 billion, a P/E ratio of 115.47 and a beta of 2.41. The company has a quick ratio of 1.31, a current ratio of 1.70 and a debt-to-equity ratio of 0.47.
Semtech (NASDAQ:SMTC – Get Free Report) last issued its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating 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 business had revenue of $341.87 million during the quarter, compared to analysts’ expectations of $328.67 million. During the same period in the previous year, the company posted $0.41 earnings per share. The firm’s revenue for the quarter was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, sell-side analysts forecast that Semtech Corporation will post 2.64 EPS for the current year.
Institutional Investors Weigh In On Semtech
A number of large investors have recently bought and sold shares of the company. BlackRock Inc. bought a new position in shares of Semtech in the 2nd quarter valued at $1,577,947,000. ABS Investment Management LLC acquired a new position in shares of Semtech in the second quarter worth approximately $178,035,000. Andar Capital Management HK Ltd bought a new stake in shares of Semtech in the 2nd quarter valued at $162,000,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Semtech by 396.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company’s stock worth $136,298,000 after acquiring an additional 672,447 shares during the period. Finally, Atreides Management LP bought a new stake in Semtech in the second quarter worth approximately $89,214,000.
About Semtech
(Get Free Report)
Semtech Corporation is a global semiconductor and technology company that designs and supplies analog and mixed-signal products for communications, industrial, automotive, consumer, and infrastructure applications. Its solutions are used to manage, protect, connect, and transmit data in electronic systems.
The company’s portfolio includes signal-integrity products, protection devices, power-management components, optical and high-speed connectivity solutions, and video-processing technologies.
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Key Takeaways Stocks like CMRC, MSGM, SMTC and TLS were screened for strong liquidity and asset efficiency.The screen narrowed 7,700 stocks to eight, with these four meeting strict efficiency and growth criteria.Each stock also boasts higher asset utilization than its industry average and solid growth attributes.
Investors seeking solid gains should benefit from adding stocks with sound liquidity, which encourages business growth. Liquidity measures a company’s capability to meet short-term debt obligations. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns.
Investors may want to consider adding four top-ranked stocks — Commerce.com, Inc. (CMRC - Free Report) , Motorsport Games Inc. (MSGM - Free Report) , Semtech Corporation (SMTC - Free Report) and Telos Corporation (TLS - Free Report) — to their portfolios to boost returns.
However, it is important to exercise caution. While high liquidity can indicate that a company is efficiently managing its short-term obligations, it may also suggest underutilization of resources. In some cases, companies with excess liquidity may not be deploying their assets effectively, which could limit growth potential.
Hence, one may consider a company’s efficiency level in addition to its liquidity while identifying prospective winners. A balanced assessment of both liquidity and efficiency can help identify truly promising investment opportunities.
Measures to Identify Liquid StocksCurrent Ratio: It measures current assets relative to current liabilities. The ratio gauges a company’s potential to meet short- and long-term debt obligations. A current ratio — the working capital ratio — below 1 indicates that the company has more liabilities than assets. A high current ratio does not always suggest that the company is in good financial shape. It may also indicate that the firm failed to utilize its assets significantly. Hence, a range of 1-3 is considered ideal.
Quick Ratio: Unlike the current ratio, the quick ratio — the “acid-test ratio” or “quick assets ratio” — indicates a company’s ability to pay short-term obligations. It considers inventory, excluding current assets, relative to current liabilities. A quick ratio of more than 1 is desirable, like the current ratio.
Cash Ratio: This is the most conservative ratio among the three, considering cash, cash equivalents and invested funds relative to current liabilities. It measures a company’s ability to meet existing debt obligations using the most liquid assets. Though a cash ratio of more than 1 may suggest sound financials, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is always desirable, but it may not always represent a company’s financial condition.
Screening Parameters
To pick the best of the lot, we have added asset utilization — a widely used measure of a company’s efficiency — as one of the screening criteria.
Asset utilization is the ratio of total sales in the past 12 months to the last four-quarter average of total assets. Though this ratio varies across industries, companies with a ratio higher than that of their industry can be considered efficient.
We added our proprietary Growth Score to the screen to ensure these liquid and efficient stocks have solid growth potential.
Current Ratio, Quick Ratio, and Cash Ratio between 1 and 3: While liquidity ratios greater than 1 are desirable, significantly high ratios may indicate inefficiency.
Asset utilization is more significant than the industry average: A higher asset utilization than the industry average indicates a company’s efficiency.
Zacks Rank equal to #1 (Strong Buy): Only Strong Buy-rated stocks can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Score less than or equal to B: Back-tested results show that stocks with a Growth Score of A or B handily beat other stocks when combined with a Zacks Rank #1 or 2 (Buy).
These criteria have narrowed the universe of more than 7,700 stocks to only eight.
Here are four of the eight stocks that qualified the screen:
Commerce.com is the parent company of BigCommerce, Feedonomics and Makeswift. The company provides an open, intelligent ecosystem of technology solutions to support various business models, including business-to-consumer (“B2C”), business-to-business (“B2B”) and small business (“SB”) use cases.
The company recently launched Feedonomics Enrichment and BigCommerce Catalog Enrichment, forming the mainstay of its agentic commerce solutions. Feedonomics Enrichment and BigCommerce Catalog Enrichment will support B2C and B2B merchants as they convert their catalogs into AI-ready product intelligence at scale, added CMRC.
In September, the company also announced a strategic plan to boost profitability and free cash flow generation. The company aims to lower its annualized non-GAAP operating costs by approximately $60 million to $80 million. Most of these savings are expected to translate into additional free cash flow. The board of directors also authorized a share repurchase program of up to $50 million over the next two years.
The Zacks Consensus Estimate for 2026 earnings stands at 34 cents per share, unchanged in the past seven days. The company has a Growth Score of A and an average trailing four-quarter earnings surprise of 204.6%.
Motorsport Games is a racing game developer and publisher. MSGM also provides an esports ecosystem for all official motorsport racing series. The company is benefiting from growing player engagement in Le Mans Ultimate and strong adoption of its RaceControl subscription platform.
On the last earnings call, management noted that Le Mans Ultimate has sold over 1.2 million downloadable content units since launch and more than 500,000 base-game units. RaceControl subscription revenues surged nearly 349% year over year to $1.4 million in the first half of 2026, with paid subscribers exceeding 40,500 at June-end, up 230% year over year. The continued rollout of new content, including U.S. Track Packs, and the planned expansion of Le Mans Ultimate to PlayStation and Xbox platforms are expected to expand its addressable market and support long-term growth.
For the first half of 2026, revenues increased 74% year over year to $7.6 million, while gross margin expanded to 84.7% from 78.8%.
The Zacks Consensus Estimate for MSGM’s 2026 earnings stands at 30 cents per share, unchanged in the past seven days. The company has a Growth Score of B.
Semtech manufactures high-performance semiconductor chips for AI data center networking and connected IoT devices.
The company is benefiting from strong data-center demand, particularly across its FiberEdge, CopperEdge and emerging photonics portfolio. The company’s photonics portfolio includes semiconductor optical amplifiers, high-power lasers and high-speed photodiodes for scale-up, scale-out and scale-across data center connectivity applications.
Data-center revenues reached $100 million in the second quarter of fiscal 2027, up 39% sequentially and 91% year over year. The top line was supported by continued strength in 800G products and a ramp in 1.6T CopperEdge and the ramp of 1.6T FiberEdge. LoRa represents another major growth engine. LoRa-enabled net sales increased 31% sequentially and 58% year over year to $58 million. Growing traction for the LoRa Gen 4 platform, including LoRa Plus and other RF protocols, bodes well. For the third quarter of fiscal 2027, Semtech expects net sales to be $410 million (+/- $5 million).
The company recently integrated its AirLink secure edge 5G/LTE routers and network management portfolio with Palo Alto Networks’ Next-Generation Firewalls to deliver automated, edge-to-core safety for critical infrastructure operators and utilities.
The Zacks Consensus Estimate for SMTC’s fiscal 2027 earnings is pegged at $3.48 per share, unchanged in the past seven days. The company has a Growth Score of A and an average trailing four-quarter earnings surprise of 9.82%.
Telos Corporation is a cyber, cloud and enterprise security solutions provider serving U.S. federal government, regulated industries and global enterprises. Growth in its Telos ID business, particularly the TSA PreCheck and Defense Manpower Data Center programs, is supporting revenue expansion.
In August, Telos secured a $34.3 million task order to revamp cybersecurity risk management for the U.S. Air Force Intelligence Community. This was followed by a $13.7 million contract from the U.S. Department of Health and Human Services in September. TLS also secured a three-year, $13.5 million contract to support U.S. Air Force Intelligence Community cyber operations in October.
For 2026, management raised its adjusted EBITDA guidance to $23.6-$28.6 million from $20.6-$28 million and projected revenues of $187-$195 million.
The Zacks Consensus Estimate for TLS’ 2026 earnings is pegged at 16 cents per share, unchanged in the past seven days. The company has a Growth Score of A and an average trailing four-quarter earnings surprise of 212.5%.
Skyworks Solutions (NASDAQ:SWKS – Get Free Report) and Semtech (NASDAQ:SMTC – Get Free Report) are both large-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.
Profitability This table compares Skyworks Solutions and Semtech’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Skyworks Solutions 7.23% 10.74% 7.95% Semtech 13.11% 21.74% 8.98% Analyst Recommendations This is a breakdown of recent recommendations and price targets for Skyworks Solutions and Semtech, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Skyworks Solutions 2 17 5 0 2.12 Semtech 0 4 14 1 2.84 Skyworks Solutions presently has a consensus price target of $79.21, suggesting a potential upside of 3.75%. Semtech has a consensus price target of $208.06, suggesting a potential upside of 11.08%. Given Semtech’s stronger consensus rating and higher probable upside, analysts plainly believe Semtech is more favorable than Skyworks Solutions. Earnings & Valuation This table compares Skyworks Solutions and Semtech”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Skyworks Solutions $4.09 billion 2.81 $477.10 million $1.93 39.56 Semtech $1.05 billion 16.65 -$40.38 million $1.51 124.04 Skyworks Solutions has higher revenue and earnings than Semtech. Skyworks Solutions is trading at a lower price-to-earnings ratio than Semtech, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership 85.4% of Skyworks Solutions shares are owned by institutional investors. 0.2% of Skyworks Solutions shares are owned by insiders. Comparatively, 0.4% of Semtech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk Skyworks Solutions has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Semtech has a beta of 2.41, indicating that its share price is 141% more volatile than the S&P 500.
Summary Semtech beats Skyworks Solutions on 11 of the 15 factors compared between the two stocks.
(Get Free Report)
Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and the rest of Asia-Pacific. Its product portfolio includes amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, DC/DC converters, demodulators, detectors, diodes, wireless analog system on chip products, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, power over ethernet, power isolators, receivers, switches, synthesizers, timing devices, voltage controlled oscillators/synthesizers, and voltage regulators. The company products are the used in aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. Skyworks Solutions, Inc. was founded in 1962 and is based in Irvine, California.
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.
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Alongside artificial intelligence and semiconductor industry peers Nvidia (NVDA) and Advanced Micro Systems (AMD), Semtech (SMTC) earns the highest-possible 99 Composite Rating. The provider of high-speed connectivity products for AI data centers and IoT devices has also secured a spot on the Investor's Business Daily Breakout Stocks Index.
Just last week, Semtech also completed an integration of Next-Generation Firewalls, or NFGWs, with cybersecurity giant Palo Alto Networks (PANW). The integration combines Semtech's AirLink secure edge 5G/LTE routers and network management portfolio with Palo Alto Networks NGFWs.
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Semtech Takes Aim At 103% Earnings Growth
Based in Camarillo, Calif., Semtech focuses on bridging the physical and digital worlds, particularly with its LoRa, or long-range, wireless technology. Semtech has established LoRa as the de facto global networking standard for low-power, long-distance Internet of Things, or IoT, applications.
In the second quarter, Semtech generated 16% sales growth to $291 million. Earnings jumped 34% to 51 cents per share. For the full year, analysts forecast a 42% rise in revenue to $1.39 billion. Earnings are expected to skyrocket 103% to $3.48 per share.
The stock sports a 1.7 up/down volume ratio. A number above 1.0 points to demand for shares. Further emphasizing that demand, Semtech earns an B+ Accumulation/Distribution Rating.
Semtech Stock Flashes A Breakout As Nvidia, AMD Enter Test Ranges
Showing strength among the best AI stocks to watch, Semtech on Tuesday surpassed the 177.35 buy point in a second-stage consolidation. Nvidia slipped just below its entry price while AMD closed in buy range.
Also, Semtech's 50-day moving average continues to trend decisively upward. In another sign of rising technical strength, the 21-day exponential moving average has pushed solidly above the longer-term 50-day line.
Although the relative strength line has dipped in recent days, it has shot mostly higher since the second half of August.
With Wall Street's strong forecasts for the year, see if Semtech stock can break out and notch another record high.
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Semtech Corporation (NASDAQ:SMTC – Get Free Report) has earned a consensus recommendation of “Moderate Buy” from the nineteen brokerages that are presently covering the company, MarketBeat Ratings reports. Three analysts have rated the stock with a hold recommendation, fifteen have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $204.71.
SMTC has been the subject of a number of research reports. BMO Capital Markets started coverage on Semtech in a research note on Wednesday, August 26th. They issued an “outperform” rating and a $155.00 price target for the company. Roth Capital set a $220.00 price objective on Semtech in a research note on Wednesday, August 26th. Robert W. Baird increased their target price on Semtech from $225.00 to $300.00 and gave the stock an “outperform” rating in a report on Thursday, August 27th. TD Cowen lifted their target price on Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a research report on Monday, June 22nd. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $200.00 price target on shares of Semtech in a report on Wednesday, August 26th.
View Our Latest Report on Semtech
Insider Buying and Selling at Semtech In other Semtech news, COO Asaf Silberstein sold 8,500 shares of the firm’s stock in a transaction 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 sale, the chief operating officer directly owned 96,862 shares in the company, valued at approximately $12,378,963.60. This trade represents a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Julie Ruehl sold 1,500 shares of the business’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $145.00, for a total transaction of $217,500.00. Following the transaction, the director directly owned 7,140 shares of the company’s stock, valued at approximately $1,035,300. This trade represents a 17.36% decrease in their position. 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 ninety days, insiders have sold 22,768 shares of company stock worth $3,214,795. 0.44% of the stock is owned by company insiders. Institutional Trading of Semtech A number of large investors have recently modified their holdings of SMTC. ABS Investment Management LLC acquired a new position in Semtech during the 2nd quarter valued at about $178,035,000. FNY Investment Advisers LLC increased its stake in shares of Semtech by 900.0% in the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 180 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Semtech during the second quarter valued at approximately $32,000. Allworth Financial LP bought a new stake in shares of Semtech during the second quarter valued at approximately $55,000. Finally, Allied Private Wealth LLC acquired a new position in shares of Semtech during the second quarter worth approximately $65,000.
Semtech Stock Performance Semtech stock opened at $180.10 on Wednesday. The stock has a market cap of $16.81 billion, a P/E ratio of 119.27 and a beta of 2.35. The company has a current ratio of 1.70, a quick ratio of 1.31 and a debt-to-equity ratio of 0.47. The stock has a 50 day moving average of $143.23 and a 200-day moving average of $130.62. Semtech has a 52 week low of $60.28 and a 52 week high of $190.64.
Semtech (NASDAQ:SMTC – Get Free Report) last issued its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.61 by $0.10. The business had revenue of $341.87 million during the quarter, compared to analyst estimates of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The business’s revenue was up 32.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.41 earnings per share. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, analysts expect that Semtech will post 2.64 EPS for the current fiscal year.
About Semtech (Get Free Report)
Semtech Corporation is a global semiconductor and technology company that designs and supplies analog and mixed-signal products for communications, industrial, automotive, consumer, and infrastructure applications. Its solutions are used to manage, protect, connect, and transmit data in electronic systems.
The company’s portfolio includes signal-integrity products, protection devices, power-management components, optical and high-speed connectivity solutions, and video-processing technologies.
Further Reading Five stocks we like better than Semtech CarMax Just Gave Investors a Better Reason to Believe in the Turnaround CoreWeave Comes With Risks: Analysts Split on What Matters Most Bottlenecking the Future: TSMC Prices Out the Competition Fervo Energy Hits Geothermal Milestone: Will It Matter For The Stock?
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A month has gone by since the last earnings report for Semtech (SMTC - Free Report) . Shares have added about 20.3% in that time frame, outperforming the S&P 500.
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 Q2 Earnings Surpass Estimates, Revenues Increase Y/YSemtech posted second-quarter fiscal 2027 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 $39.3 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 Systems 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 DetailThe 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 $349.4 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 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.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 60.76% due to these changes.
VGM ScoresCurrently, Semtech has a great Growth Score of A, a grade with the same score on the momentum front. 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 #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerSemtech is part of the Zacks Semiconductor - Analog and Mixed industry. Over the past month, Analog Devices (ADI - Free Report) , a stock from the same industry, has gained 3.6%. The company reported its results for the quarter ended July 2026 more than a month ago.
Analog Devices reported revenues of $4.02 billion in the last reported quarter, representing a year-over-year change of +39.6%. EPS of $3.45 for the same period compares with $2.05 a year ago.
Analog Devices is expected to post earnings of $3.84 per share for the current quarter, representing a year-over-year change of +69.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Analog Devices. Also, the stock has a VGM Score of C.
Key Takeaways Stocks like MNDY, MTCH, SMTC and UI were screened for strong liquidity and asset efficiency.The screen narrowed 7,700 stocks to 12, with these four meeting strict efficiency and growth criteria.Each stock also boasts higher asset utilization than its industry average and solid growth attributes. Liquidity measures a company’s capability to meet short-term debt obligations. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns. Investors seeking solid gains should add stocks with strong liquidity, which supports business growth.
Investors may want to consider adding four top-ranked stocks —Match Group, Inc. (MTCH - Free Report) , monday.com Ltd. (MNDY - Free Report) , Ubiquiti Inc. (UI - Free Report) and Semtech Corporation (SMTC - Free Report) — to their portfolios to boost returns.
However, one should be careful while investing in a stock with high liquidity levels. High liquidity may also indicate that the company cannot competently utilize its assets.
Besides sufficient cash, an investor might also consider a company’s capital deployment abilities before investing. A balanced assessment of both liquidity and efficiency can help identify truly promising investment opportunities.
Measures to Identify Liquid StocksCurrent Ratio: It measures current assets relative to current liabilities. The ratio gauges a company’s potential to meet short- and long-term debt obligations. A current ratio — the working capital ratio — below 1 indicates that the company has more liabilities than assets. A high current ratio does not always suggest that the company is in good financial shape. It may also indicate that the firm failed to utilize its assets significantly. Hence, a range of 1-3 is considered ideal.
Quick Ratio: Unlike the current ratio, the quick ratio — the “acid-test ratio” or “quick assets ratio” — indicates a company’s ability to pay short-term obligations. It considers inventory, excluding current assets, relative to current liabilities. A quick ratio of more than 1 is desirable, like the current ratio.
Cash Ratio: This is the most conservative ratio among the three, considering cash, cash equivalents and invested funds relative to current liabilities. It measures a company’s ability to meet existing debt obligations using the most liquid assets. Though a cash ratio of more than 1 may suggest sound financials, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is always desirable, but it may not always represent a company’s financial condition.
Screening ParametersTo pick the best of the lot, we have added asset utilization — a widely used measure of a company’s efficiency — as one of the screening criteria. Asset utilization is the ratio of total sales in the past 12 months to the last four-quarter average of total assets. Though this ratio varies across industries, companies with a ratio higher than that of their industry can be considered efficient.
We added our proprietary Growth Score to the screen to ensure these liquid and efficient stocks have solid growth potential.
Current Ratio, Quick Ratio, and Cash Ratio between 1 and 3: While liquidity ratios greater than 1 are desirable, significantly high ratios may indicate inefficiency.
Asset utilization is more significant than the industry average: A higher asset utilization than the industry average indicates a company’s efficiency.
Zacks Rank equal to #1 (Strong Buy): Only Strong Buy-rated stocks can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Score less than or equal to B: Back-tested results show that stocks with a Growth Score of A or B handily beat other stocks when combined with a Zacks Rank #1 or 2 (Buy).
These criteria have narrowed the universe of more than 7,700 stocks to only 12.
Here are four of the 12 stocks that qualified the screen:
Match Group is the parent company of brands like Tinder, Hinge, Match, Meetic, OkCupid, Plenty Of Fish and more, helping people make meaningful connections. Dating app Tinder is the company’s largest brand.
Hinge is a major growth contributor. Direct revenues for Hinge rose 22% year over year to $204 million in the second quarter of 2026. Adjusted EBITDA surged 48% to $79 million. Global MAU increased 13%, supported particularly by expansion markets. Overall, quarterly revenues of $853 million fell 1% year over year.
The company’s potential growth driver is Tinder’s product-led turnaround. On the last earnings call, management noted that updated recommendation algorithms have helped improve engagement, while Events could encourage new and lapsed users to reconsider Tinder. The company plans to expand Events from 10 cities currently to 26 cities by September and 75 cities by year-end.
For the third quarter, Match expects revenues of $885 million to $895 million, representing a year-over-year decline of 2% to 3%. The outlook includes a $10 million negative impact from Tinder user-experience tests and product changes, along with a $15 million negative impact from lower Azar revenues following its app redesign.
The Zacks Consensus Estimate for MTCH’s 2026 earnings stands at $4.13 per share, unchanged in the past seven days. The company has a Growth Score of B.
monday.com specializes in the development of software applications. AI adoption is emerging as a big growth opportunity for the company. AI ARR doubled sequentially from the first quarter to the second quarter of 2026 and accounted for 17% of net new ARR added during the quarter. Second-quarter revenues of $364.6 million increased 22% year over year.
Customers generating more than $100,000 in ARR increased 37%, while those above $500,000 ARR jumped 68% year over year. Record net additions in both cohorts demonstrate that monday.com is successfully moving toward larger customers.
For the third quarter, monday.com expects revenues of $368-$370 million, implying 16%-17% year-over-year growth.
The Zacks Consensus Estimate for MNDY’s 2026 earnings is $5.50 per share, unchanged over the past seven days. The company has a Growth Score of B and an average trailing four-quarter earnings surprise of 23.56%.
Ubiquiti, along with its subsidiaries, offers networking products and solutions for service providers, enterprises and and smart homes. Its service-provider platforms provide infrastructure for fixed wireless broadband, wireless backhaul and routing, while enterprise platforms include wireless local area network infrastructure, video surveillance, switching and routing solutions, security gateways and door access systems.
Fiscal 2026 revenues rose 27.2% to $3.27 billion as both webstore and distributor sales increased. No customer represented 10% or more of fiscal 2026 revenues, limiting dependence on any single buyer.
Enterprise Technology remains Ubiquiti’s primary growth engine, supported by integrated networking and IT management offerings. Fiscal 2026 Enterprise Technology revenues rose 32% to $2.97 billion and increased to 91% of total revenues from 88% in fiscal 2025.
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $17.08 per share, unchanged over the past seven days. The company has a Growth Score of B and an average trailing four-quarter earnings surprise of 31.86%.
Semtech manufactures high-performance semiconductor chips for AI data center networking and connected IoT devices.
The company is benefiting from strong data-center demand, particularly across its FiberEdge, CopperEdge and emerging photonics portfolio. The company’s photonics portfolio includes semiconductor optical amplifiers, high-power lasers and high-speed photodiodes for scale-up, scale-out and scale-across data center connectivity applications.
Data-center revenues reached $100 million in the second quarter of fiscal 2027, up 39% sequentially and 91% year over year. The top line was supported by continued strength in 800G products and a ramp in 1.6T CopperEdge and the ramp of 1.6T FiberEdge. LoRa represents another major growth engine. LoRa-enabled net sales increased 31% sequentially and 58% year over year to $58 million. Growing traction for the LoRa Gen 4 platform, including LoRa Plus and other RF protocols, bodes well. For the third quarter of fiscal 2027, Semtech expects net sales to be $410 million (+/- $5 million).
The company recently integrated its AirLink secure edge 5G/LTE routers and network management portfolio with Palo Alto Networks’ Next-Generation Firewalls to deliver automated, edge-to-core safety for critical infrastructure operators and utilities.
The Zacks Consensus Estimate for SMTC’s fiscal 2027 earnings is pegged at $3.48 per share, unchanged in the past seven days. The company has a Growth Score of A and an average trailing four-quarter earnings surprise of 9.82%.
Nykredit A S bought a new stake in Semtech Corporation (NASDAQ:SMTC – Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor bought 3,441 shares of the semiconductor company’s stock, valued at approximately $557,000.
Other hedge funds have also bought and sold shares of the company. Leonteq Securities AG increased its stake in shares of Semtech by 11.2% in the 1st quarter. Leonteq Securities AG now owns 1,171 shares of the semiconductor company’s stock valued at $90,000 after purchasing an additional 118 shares during the last quarter. Corient Private Wealth LP lifted its position in shares of Semtech by 4.0% during the 2nd quarter. Corient Private Wealth LP now owns 3,147 shares of the semiconductor company’s stock worth $515,000 after buying an additional 122 shares during the last quarter. ABS Investment Management LLC acquired a new stake in Semtech in the second quarter valued at about $178,035,000. FNY Investment Advisers LLC boosted its stake in Semtech by 900.0% in the second quarter. FNY Investment Advisers LLC now owns 200 shares of the semiconductor company’s stock valued at $32,000 after buying an additional 180 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Semtech in the second quarter valued at about $32,000.
Wall Street Analyst Weigh In Several brokerages have commented on SMTC. Robert W. Baird boosted their target price on Semtech from $225.00 to $300.00 and gave the stock an “outperform” rating in a research note on Thursday, August 27th. UBS Group lifted their price target on shares of Semtech from $225.00 to $230.00 and gave the company a “buy” rating in a report on Wednesday, August 26th. Morgan Stanley upped their price objective on shares of Semtech from $175.00 to $195.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 26th. Benchmark reissued a “buy” rating on shares of Semtech in a research note on Thursday, August 20th. Finally, BMO Capital Markets began coverage on shares of Semtech in a research report on Wednesday, August 26th. They issued an “outperform” rating and a $155.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, Semtech has a consensus rating of “Moderate Buy” and an average target price of $204.71.
Check Out Our Latest Stock Analysis on SMTC Semtech Price Performance Shares of NASDAQ:SMTC opened at $169.33 on Thursday. The firm has a market cap of $15.80 billion, a PE ratio of 112.14 and a beta of 2.35. The firm’s fifty day moving average is $139.32 and its 200-day moving average is $128.01. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.31 and a current ratio of 1.70. Semtech Corporation has a 52 week low of $57.50 and a 52 week high of $190.64.
Semtech (NASDAQ:SMTC – Get Free Report) last announced its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.10. The business had revenue of $341.87 million during the quarter, compared to analyst estimates of $328.67 million. Semtech had a return on equity of 21.74% and a net margin of 13.11%.Semtech’s revenue for the quarter was up 32.7% compared to the same quarter last year. During the same period last year, the company earned $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Sell-side analysts predict that Semtech Corporation will post 2.64 earnings per share for the current year.
Insider Activity In other news, Director Rodolpho Cardenuto sold 5,321 shares of the stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $165.00, for a total transaction of $877,965.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Asaf Silberstein sold 8,500 shares of Semtech stock in a transaction 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 transaction, the chief operating officer directly owned 96,862 shares of the company’s stock, valued at $12,378,963.60. This represents a 8.07% decrease in their position. 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. In the last quarter, insiders have sold 23,238 shares of company stock worth $3,274,388. 0.44% of the stock is owned by insiders.
Semtech Profile (Free Report)
Semtech Corporation (NASDAQ:SMTC) is a global semiconductor and technology company that designs and supplies analog and mixed-signal products. Its solutions are used to manage, protect, connect and process electronic signals in infrastructure, data centers, industrial systems, automotive applications, consumer devices and communications equipment.
The company’s portfolio includes signal-integrity and connectivity products, power-management and protection devices, wireless and radio-frequency solutions, and specialized semiconductors.
Further Reading Five stocks we like better than Semtech Chips to Bots: Qualcomm’s Agentic AI Breakout Ciena Fell 40%—Now One Analyst Sees 50% Upside Energy Transfer Taps the AI Power Boom Viking’s Obesity Edge May Be Staying Power, Not Weight Loss 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).
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Semtech AirLink networking solutions and Palo Alto Networks Next-Generation Firewalls deliver automated, edge-to-core protection for utilities and critical infrastructure operators
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 it has completed a product integration with Palo Alto Networks Next-Generation Firewalls (NGFWs). Semtech joins an extensive ecosystem of Palo Alto Networks Technology Partners to deliver intelligent and interoperable solutions that help joint customers drive resilience and compliance, securing the most complex environments.
The integration combines Semtech’s AirLink® secure edge 5G/LTE routers and network management portfolio with Palo Alto Networks NGFWs — industry-leading firewalls that leverage machine learning for proactive protection and comprehensive visibility and control — along with Next-Generation Trust Security (NGTS) and Zero Touch Public Key Infrastructure (ZTPKI) solutions to enable operators to scale their connected infrastructure with confidence while reducing complexity and strengthening resilience against evolving threats. As utilities and critical infrastructure operators deploy thousands of connected assets across distributed networks, including wired, cellular and satellite connections, this Zero Trust solution secures these assets at scale, solving a key challenge in operational technology.
“Threats to critical infrastructure are accelerating, with Frontier AI compressing attack timelines while many operational technology assets cannot be patched quickly—or at all,” said Mitch Rappard, director of technical solutions at Palo Alto Networks. “Together, Palo Alto Networks and Semtech are extending Zero Trust security to the industrial edge by combining resilient AirLink cellular connectivity with continuous asset visibility, operational risk prioritization and AI-powered threat prevention. This enables operators to enforce protections without disrupting critical services, secure distributed deployments from edge to core, and build a scalable foundation for today’s threats and the evolving security landscape.”
“Securing utility networks at scale requires partners who understand both the operational realities of the field and the demands of modern cybersecurity. The collaboration between Semtech and Palo Alto Networks represents exactly the kind of integrated, standards-aligned approach our members expect to protect critical infrastructure while keeping pace with digital transformation,” said Bobbi Harris, executive director of the Utility Broadband Alliance (UBBA).
“Utilities and critical infrastructure operators are managing increasingly complex, distributed environments where a single security gap can have far-reaching consequences,” said Kinana Hussain, vice president, AirLink Networking Solutions at Semtech. “Securing distributed industrial assets requires both trusted connectivity at the edge and robust enforcement at the core. Our partnership with Palo Alto Networks brings together best-in-class mission-critical edge connectivity and enterprise-grade security to deliver a Zero Trust architecture that is both operationally practical and field-proven at scale.”
At the edge, Semtech AirLink networking solutions provide resilient connectivity across cellular, satellite and wired links, with encrypted tunnels automatically established to Palo Alto Networks firewalls — keeping data protected in transit across every asset, wherever it connects. Integrated with PAN-OS, security teams gain deep visibility into edge traffic with real-time threat detection and prevention built in. Certificate provisioning, renewals and machine identity management are fully automated through Palo Alto Networks Zero Touch PKI and AirLink management platforms — eliminating manual complexity and enabling consistent, credential-secure configuration across thousands of remote field assets.
Semtech and Palo Alto Networks will be exhibiting in the Innovation Zone at the UBBA Summit & Plugfest, Oct. 13–15, 2026, at The Worthington Renaissance, Fort Worth, TX.
Registered attendees are also invited to join the companies for a joint technology session on Tuesday, Oct. 13, 2026 at 3:00–3:55 PM local time for a deeper dive into securing utility telecom infrastructure at scale.
For more information on AirLink Networking Solutions visit semtech.com/airlink.
About Palo Alto Networks
Palo Alto Networks is the global AI and cybersecurity leader. The Palo Alto Networks Technology Partner Program delivers a comprehensive portfolio of integrated solutions that help businesses close security gaps and elevate the end-user experience.
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 and AirLink 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.
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 it has completed a product integration with Palo Alto Networks Next-Generation Firewalls (NGFWs). Semtech joins an extensive ecosystem of Palo Alto Networks Technology Partners to deliver intelligent and interoperable solutions that help joint customers drive resilience and compliance, securing the most complex environments.
The integration combines Semtech’s AirLink® secure edge 5G/LTE routers and network management portfolio with Palo Alto Networks NGFWs — industry-leading firewalls that leverage machine learning for proactive protection and comprehensive visibility and control — along with Next-Generation Trust Security (NGTS) and Zero Touch Public Key Infrastructure (ZTPKI) solutions to enable operators to scale their connected infrastructure with confidence while reducing complexity and strengthening resilience against evolving threats. As utilities and critical infrastructure operators deploy thousands of connected assets across distributed networks, including wired, cellular and satellite connections, this Zero Trust solution secures these assets at scale, solving a key challenge in operational technology.
“Threats to critical infrastructure are accelerating, with Frontier AI compressing attack timelines while many operational technology assets cannot be patched quickly—or at all,” said Mitch Rappard, director of technical solutions at Palo Alto Networks. “Together, Palo Alto Networks and Semtech are extending Zero Trust security to the industrial edge by combining resilient AirLink cellular connectivity with continuous asset visibility, operational risk prioritization and AI-powered threat prevention. This enables operators to enforce protections without disrupting critical services, secure distributed deployments from edge to core, and build a scalable foundation for today’s threats and the evolving security landscape.”
“Securing utility networks at scale requires partners who understand both the operational realities of the field and the demands of modern cybersecurity. The collaboration between Semtech and Palo Alto Networks represents exactly the kind of integrated, standards-aligned approach our members expect to protect critical infrastructure while keeping pace with digital transformation,” said Bobbi Harris, executive director of the Utility Broadband Alliance (UBBA).
“Utilities and critical infrastructure operators are managing increasingly complex, distributed environments where a single security gap can have far-reaching consequences,” said Kinana Hussain, vice president, AirLink Networking Solutions at Semtech. “Securing distributed industrial assets requires both trusted connectivity at the edge and robust enforcement at the core. Our partnership with Palo Alto Networks brings together best-in-class mission-critical edge connectivity and enterprise-grade security to deliver a Zero Trust architecture that is both operationally practical and field-proven at scale.”
At the edge, Semtech AirLink networking solutions provide resilient connectivity across cellular, satellite and wired links, with encrypted tunnels automatically established to Palo Alto Networks firewalls — keeping data protected in transit across every asset, wherever it connects. Integrated with PAN-OS, security teams gain deep visibility into edge traffic with real-time threat detection and prevention built in. Certificate provisioning, renewals and machine identity management are fully automated through Palo Alto Networks Zero Touch PKI and AirLink management platforms — eliminating manual complexity and enabling consistent, credential-secure configuration across thousands of remote field assets.
Semtech and Palo Alto Networks will be exhibiting in the Innovation Zone at the UBBA Summit & Plugfest, Oct. 13–15, 2026, at The Worthington Renaissance, Fort Worth, TX.
Registered attendees are also invited to join the companies for a joint technology session on Tuesday, Oct. 13, 2026 at 3:00–3:55 PM local time for a deeper dive into securing utility telecom infrastructure at scale.
For more information on AirLink Networking Solutions visit semtech.com/airlink.
About Palo Alto Networks
Palo Alto Networks is the global AI and cybersecurity leader. The Palo Alto Networks Technology Partner Program delivers a comprehensive portfolio of integrated solutions that help businesses close security gaps and elevate the end-user experience.
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 and AirLink 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/20260923583735/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.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Semtech (SMTC - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Semtech currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if SMTC is a promising momentum pick, let's examine some Momentum Style elements to see if this chipmaker holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For SMTC, shares are up 10.62% over the past week while the Zacks Semiconductor - Analog and Mixed industry is down 1.03% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 46.7% compares favorably with the industry's 2.23% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Semtech have risen 13.6%, and are up 188.27% in the last year. On the other hand, the S&P 500 has only moved 3.86% and 17.75%, respectively.
Investors should also take note of SMTC's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now SMTC is averaging 3,760,327 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with SMTC.
Over the past two months, 6 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost SMTC's consensus estimate, increasing from $2.66 to $3.48 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that SMTC is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Semtech on your short list.
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 its LoRa Plus™ LR2021 transceiver incorporating fourth-generation LoRa® IP was named a winner of the 2026 EDGE Award for Design Innovation. The EDGE Awards are presented by the Engineering Design & Automation Group of Endeavor Business Media to champion innovative technologies launched in the past year.
The 2026 EDGE Awards celebrate outstanding innovation in product design and function for the engineering industry. The LR2021 was named a winner in the Communications & Networks category. This award recognizes an innovation that received the most votes in a category from a Readers’ Choice poll.
The LR2021 was also recently selected for the 25th IoTE Gold Award – Innovative Product Award at IoTE Shenzhen 2026.
Designed for Next-Generation IoT
With over 500 million end nodes deployed worldwide, LoRa is the leading low power wide area network (LPWAN) for IoT applications. The LR2021 is the first transceiver chip in Semtech's LoRa Plus family, incorporating fourth-generation LoRa IP with Multi-PHY compatibility that supports both terrestrial and SATCOM connectivity paths across sub-GHz, 2.4 GHz ISM bands and licensed L/S-bands.
The transceiver is designed to be backward compatible with previous LoRa devices, supporting seamless LoRaWAN® compatibility, while featuring expanded physical layer modulations to support higher data rate applications utilizing innovative fast long-range communication (FLRC), which has a data rate of up to 2.6 Mbps.
“The LR2021 gives device makers the flexibility to support LoRa, edge AI, multi-PHY, high-bandwidth, and non-terrestrial applications using a single chip without compromising on power or range,” said Shahar Feldman, senior director of product marketing at Semtech. “For contract manufacturers, the single-SKU design also cuts supply chain complexity. Recognition by engineers who understand design and logistics considerations firsthand makes this award especially meaningful.”
Expanded Architectural Features
Other notable LR2021 architecture features include:
Hardware Simplification: Single-SKU design eliminates the need for multiple regional variants, reducing inventory complexity by up to 70% for global manufacturers, and improved robustness to frequency offset allows lower cost crystals and design simplifications.Component Elimination: RF switch and TCXO are no longer required, reducing bill of materials (BOM) costs, PCB footprint and simplifying thermal management.Protocol Flexibility: Multi-PHY supports future-proof hardware investments as market requirements evolve.Application Expansion: FLRC’s 2.6 Mbps data throughput enables entirely new use cases — from basic sensor telemetry with firmware update over-the-air (FUOTA) capabilities, to AI-powered image and audio processing at the edge.Extended Coverage: Enhanced sensitivity and satellite connectivity options address previously unreachable deployment scenarios. Detecting four spreading factors in parallel with a single transceiver eliminates the power-versus-range trade-off in single-channel LoRaWAN gateways.Improved Power Efficiency: Faster, configurable channel activity detection (CAD) modes reduce idle power consumption and false detections.Interference Mitigation: Enhanced blocking immunity and configurable forward error correction, combining convolutional coding with long interleaving, improve resilience to burst interference, blocking, Doppler effects, and fast fading.Customers and ecosystem partners are invited to visit Semtech at booth #XL2 during The Things Conference 2026, Sept. 22–23, in Amsterdam, Netherlands, to learn more about the portfolio and meet with Semtech’s technical experts.
Learn more about the LR2021 at semtech.com/lr2021.
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/20260921701241/en/
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 its LoRa Plus™ LR2021 transceiver incorporating fourth-generation LoRa® IP was named a winner of the 2026 EDGE Award for Design Innovation. The EDGE Awards are presented by the Engineering Design & Automation Group of Endeavor Business Media to.
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 full production availability of its mobile transport portfolio enabling 50G fronthaul for the next wave of 5G-Advanced radio deployments. The announcement aligns with the industry’s transition to 50G optical interfaces, marked by Ericsson’s Mobile World Congress 2026-announced portfolio of AI-ready Massive Multiple-Input Multiple-Output (MIMO) and remote radios, and Nokia’s Doksuri Remote Radio Heads built on the latest ReefShark System on Chip (SoC) — each engineered to handle the surge in uplink traffic driven by multi-modal AI, augmented reality, and generative AI applications on mobile devices.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260920077196/en/
Now shipping in volume, Semtech’s mobile transport portfolio enables system vendors and operators to deploy the fronthaul architecture required by many of today's radio platforms.
Cloud-assisted AI applications are reshaping mobile traffic patterns. Industry forecasts, including those published by the Mobile Optical Pluggables Alliance (MOPA), point to a 3x–5x increase in uplink capacity requirements as devices offload heavy AI inference to the cloud. This shift lands hardest on the fronthaul, where the encoding overhead of uplink traffic leaves less headroom to grow, making 50G optics increasingly critical to fronthaul design.
“The optical layer is the foundation of the AI-era mobile network,” said Stefan Dahlfort, president of the Mobile Optical Pluggables Alliance (MOPA). “With operators and system vendors now committing to 50G fronthaul, the industry needs interoperable, high-volume silicon solutions ready today. Semtech’s portfolio supports MOPA's blueprints and the broader introduction of 5G-Advanced.”
“Bringing 50G optical modules to volume requires close partnership between module makers and silicon suppliers,” said Frank Chang, chief technology officer at Source Photonics. “Semtech's CDR and TIA portfolio gives us the flexibility and performance we need to deliver across the full range of fronthaul architectures our customers are deploying.”
“AI is rewriting the rules of mobile traffic, and the uplink is now one of the critical dimensions,” said Raza Khan, director of wireless marketing with Semtech's signal integrity products group. “With the industry’s latest radios moving to 50G interfaces, customers need a complete, qualified solution they can deploy today, not a roadmap promise. Semtech’s wireless portfolio enables the various architectures that the industry is building.”
Now shipping in volume, Semtech’s portfolio enables system vendors and operators to deploy the fronthaul architecture required by many of today's radio platforms:
10 km duplex links: GN2255 Clock and Data Recovery (CDR) paired with the GN1700TI Transimpedance Amplifier (TIA)15 km bidirectional (BiDi) links: GN2255S CDR paired with the GN1700TI TIAWavelength Division Multiplexing (WDM) and longer-reach architectures: GN2256 CDR paired with the GN1700TI TIABuilt on Semtech’s ClearEdge®, Tri-Edge™ and FiberEdge® product families, the portfolio enables 50G fronthaul deployments for 5G-Advanced today and is designed to scale toward 6G through 2030.
Semtech continues to work with module partners and system vendors across the ecosystem to support the transition to 5G-Advanced and, ultimately, 6G.
See Semtech at the European Conference on Optical Communication (ECOC) 2026, booth #2054, from Sept. 21–23 in Málaga, Spain.
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, ClearEdge, and FiberEdge are registered trademarks or service marks of Semtech Corporation or its subsidiaries, and Tri-Edge 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.
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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 its membership in the eXtra-dense Pluggable Optics Multi-Source Agreement (XPO MSA), an industry initiative to enable high-bandwidth optical interconnects for AI network infrastructure. As a technology partner to the MSA, Semtech brings a broad portfolio of 200G/lane modulator driver and transimpedance amplifier (TIA) integrated circuits designed to support XPO transceiver development and volume deployment.
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Semtech’s 200G/lane modulator driver and TIA ICs accelerate the industry's transition to XPO for AI network infrastructure
AI infrastructure buildouts continue to demand higher network throughput and bandwidth density at lower power, driving the industry toward new transceiver form factors capable of meeting these requirements at scale. XPO addresses these demands in a groundbreaking new pluggable optical transceiver form factor with industry-leading faceplate density.
“AI requires datacom optics with the highest performance, speed and density, and the market is poised to rapidly shift to 200G/lane electrical solutions this year,” said Scott Wilkinson, lead analyst for optical components at Cignal AI. “As AI operators transition to these high-speed optics, demand will continue to rapidly expand from $9 billion at the start of the AI revolution in 2024 to an estimated $37 billion in 2026.”
“XPO represents an innovative and practical approach to addressing network density challenges while preserving the field-serviceability and configurability benefits of pluggable optics,” said Scott Schube, vice president of applications engineering and product definition at Semtech. “Semtech’s portfolio of high-performance modulator drivers and TIAs is designed to support the XPO ecosystem from early prototyping through volume deployment.”
Semtech’s 200G/lane Optical IC Portfolio for XPO
Semtech provides a broad portfolio of high-performance linear modulator driver and TIA ICs with low power, ultra-low latency and high density designed to support XPO transceiver applications.
Semtech’s XPO product family includes:
GN1834L and GN1834DL quad TIAs with 750mm channel pitchGN1838L and GN1838DL octal TIAs with 500mm channel pitchGN42T380 octal TIA with 375mm channel pitchTN1877 quad and TN1887 octal Mach-Zehnder Modulator (MZM) drivers with 625mm channel pitchGN42M380 octal MZM driver with 375mm channel pitchKey capabilities of the family include:
Multiple configurations for maximum module and PIC design flexibilityHigh linearity for best link integrityOn-chip equalization to seamlessly optimize performance over different electrical PCB and optical channels, and enable use of different opticsIntegrated telemetry features for rapid time-to-market and link analysis and tuningUltra-low latency optimized for high-density AI network switch and fabric applicationsHigh integration enabling compact transceiver designs consistent with XPO form factor requirementsAbout the XPO MSA
The XPO MSA is an industry initiative to define a new 12.8T high-density optical transceiver form factor for AI infrastructure. The current generation delivers 12.8T per module at 200G/lane using an integrated liquid-cooling design, with the MSA outlining a roadmap toward a future generation based on 400G/lane electrical interfaces. The MSA includes module, photonics and technology partners working to accelerate XPO development and deployment.
Semtech will demonstrate its high-speed driver and TIA solutions for XPO and other optical and copper interconnect applications at the European Conference on Optical Communication (ECOC) 2026, booth #2054, from Sept. 21–23 in Málaga, Spain.
About Semtech Corporation
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.
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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 (NASDAQ:SMTC – Get Free Report) and Amtech Systems (NASDAQ:ASYS – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Risk & Volatility Semtech has a beta of 2.35, meaning that its share price is 135% more volatile than the S&P 500. Comparatively, Amtech Systems has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500.
Analyst Ratings This is a summary of current ratings and recommmendations for Semtech and Amtech Systems, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Semtech 0 4 15 0 2.79 Amtech Systems 0 3 1 0 2.25 Semtech presently has a consensus price target of $204.71, suggesting a potential upside of 10.65%. Amtech Systems has a consensus price target of $22.00, suggesting a potential upside of 54.93%. Given Amtech Systems’ higher possible upside, analysts plainly believe Amtech Systems is more favorable than Semtech. Valuation & Earnings This table compares Semtech and Amtech Systems”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Semtech $1.17 billion 14.70 -$40.38 million $1.51 122.52 Amtech Systems $79.36 million 3.13 -$30.33 million $0.26 54.62 Amtech Systems has lower revenue, but higher earnings than Semtech. Amtech Systems is trading at a lower price-to-earnings ratio than Semtech, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares Semtech and Amtech Systems’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Semtech 13.11% 21.74% 8.98% Amtech Systems 4.90% 6.33% 4.00% Institutional and Insider Ownership 50.2% of Amtech Systems shares are owned by institutional investors. 0.4% of Semtech shares are owned by company insiders. Comparatively, 26.9% of Amtech Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary Semtech beats Amtech Systems on 10 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 Amtech Systems (Get Free Report)
Amtech Systems, Inc. manufactures and sells capital equipment and related consumables for use in fabricating silicon carbide (SiC), silicon power devices, analog and discrete devices, electronic assemblies, and light-emitting diodes (LEDs) worldwide. The company operates through Semiconductor and Material and Substrate segments. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow ovens, horizontal diffusion furnaces, and custom high-temp belt furnaces for use by semiconductor, electronics, and electro/mechanical assembly manufacturers; and diffusion and reflow thermal systems, as well as wafer cleaning equipment and related services. The Material and Substrate segment manufactures and sells consumables and machinery for lapping and polishing of materials, such as silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components, and optical and photonics applications. It also offers substrate products comprising of double-sided wafer cleaning system, entegrity head tester, substrate carrier, substrate polishing templates, double-sided lapping and polishing machines, single-sided polisher, and substrate process chemicals. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. Amtech Systems, Inc. was incorporated in 1981 and is headquartered in Tempe, Arizona.
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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 its membership in the eXtra-dense Pluggable Optics Multi-Source Agreement (XPO MSA), an industry initiative to enable high-bandwidth optical interconnects for AI network infrastructure. As a technology partner to the MSA, Semtech brings a broad port.
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 full production availability of its mobile transport portfolio enabling 50G fronthaul for the next wave of 5G-Advanced radio deployments. The announcement aligns with the industry's transition to 50G optical interfaces, marked by Ericsson's Mobile W.
Shares of Semtech (SMTC - Free Report) have gained 11.6% over the past four weeks to close the last trading session at $150.91, 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 $206.73 indicates a potential upside of 37%.
The mean estimate comprises 15 short-term price targets with a standard deviation of $32.98. While the lowest estimate of $155.00 indicates a 2.7% increase from the current price level, the most optimistic analyst expects the stock to surge 98.8% 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.
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 UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 45.6%, as six estimates have moved higher compared to no negative revision.
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.
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 TDS2621LP, the latest addition to its SurgeSwitch® family. Purpose built for 24 V DC power buses in industrial robotics, collaborative robots (cobots) and automated manufacturing, TDS2621LP delivers near-constant clamping voltage, IEC 61000-4-5 surge compliance and a 1.6 mm2 footprint, replacing bulkier conventional industrial packaged protection devices.
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Purpose built for 24 V DC power buses in industrial robotics, collaborative robots (cobots) and automated manufacturing, Semtech's TDS2621LP delivers near-constant clamping voltage, IEC 61000-4-5 surge compliance and a 1.6 mm² footprint.
As robotic systems shrink and move closer to humans on the factory floor, safety-critical I/O modules face a harsher Electrostatic Discharge (ESD) and surge environment. Inductive loads such as servo motors, electromagnetic brakes and pneumatic solenoids switching on and off thousands of times per shift generate high-energy transients directly on the 24 V DC bus feeding sensitive control circuitry. Conventional Transient Voltage Suppression (TVS) diodes see clamping voltage rise with peak pulse current and shift across the industrial temperature range, leaving protection margins unpredictable and requiring designers to over-specify downstream components.
“As robots and cobots pack more electronics into smaller spaces, critical margin for protection error shrinks while transient energy on the 24 V bus grows,” said Tamir Reshef, vice president of marketing and applications, analog and mixed signal products group at Semtech. “TDS2621LP solves density and footprint issues with near-constant clamping voltage at full pulse current, offering robotics system designers predictable headroom.”
TDS2621LP, built on Semtech’s proven SurgeSwitch architecture, advances the conventional PN-junction approach with a surge-rated FET operating as a precision voltage-controlled switch. Unlike conventional TVS diodes, SurgeSwitch offers uniform clamping voltage of 35 V at 24 A (8/20 μs) with a dynamic resistance of just 32 mΩ across the full pulse current range.
Target Applications
Cobot joint electronics and controller boardsIndustrial robot input line protectionAutonomous mobile robot (AMR) and automated guided vehicle (AGV) power busesPLC I/O modules, fieldbus interfaces (PROFIBUS, EtherCAT, IO-Link) and distributed control cabinets24 V actuator and solenoid valve driver boards in factory automationIndustrial sensor power lines and smart sensor nodesVBUS power lines in USB Type-C industrial portsIoT edge devices operating on 24 V DC infrastructureKey Specifications
Maximum working voltage: 26.4 V (matched to the IEC upper tolerance band for 24 V DC systems)Peak pulse current: 24 A (tp = 8/20 μs) per IEC 61000-4-5Maximum clamping voltage: 35 V at 24 ADynamic resistance: 32 mΩPackage: DFN 1.6 mm2 footprint, 2-LeadAvailability
TDS2621LP is available now in production quantities, supplied in 7-inch tape-and-reel, 3,000 units per reel. Samples and evaluation support are available through Semtech’s authorized distribution partners and for direct purchase on semtech.com. For design-in support, application notes and reference layout guidance, learn more at TDS2621LP.
Customers and partners are invited to visit Semtech at Booth #H3.G11 during Electronica India 2026, Sept. 16–18, in Bengaluru, India, to learn more about the portfolio and meet with Semtech’s technical experts.
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 and SurgeSwitch 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
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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.
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 TDS2621LP, the latest addition to its SurgeSwitch® family. Purpose built for 24 V DC power buses in industrial robotics, collaborative robots (cobots) and automated manufacturing, TDS2621LP delivers near-constant clamping voltage, IEC 61000-4-5 surg.
SMTC weekly chart shows progression of long-term bullish channel. Source: TradingView Bullish Structure Points Toward Higher Targets The long-term bullish trend structure was retained during the July correction, and the subsequent recovery supports a continuation of that trend. If the current short-term pullback is followed by signs of strength, initial new high targets include the 127.2% Fibonacci extension of the prior decline at $197.55 and the 161.8% Fibonacci extension at $223.24.
Rising Channel Expands Upside Potential A long-term rising trend channel also shows potential upside targets near the upper boundary of the pattern. That boundary area was confirmed as resistance during the formation of consolidation near the highs in June, while the lower boundary was confirmed during the July decline.
Earnings Reinforce Recent Momentum Recent bullish momentum was supported by reported earnings for the Q2 fiscal 2027 on August 25. It resulted in a higher swing low of $115 in August and the lower boundary of the symmetrical triangle pattern. In addition, that resulted in another reclaim of both the 20-day and 50-day moving averages.
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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.
