Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 26th, 2026

Semtech Corporation (NASDAQ:SMTC – Get Free Report) saw unusually large options trading on Friday. Stock investors purchased 6,027 put options on the company. This represents an increase of approximately 51% compared to the average volume of 3,981 put options.

Insider Buying and Selling In other news, COO Asaf Silberstein sold 8,500 shares of the business’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $127.80, for a total value of $1,086,300.00. Following the completion of the sale, the chief operating officer directly owned 96,862 shares in the company, valued at $12,378,963.60. The trade was a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of the stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $133.00, for a total value of $266,000.00. Following the transaction, the chief executive officer owned 64,799 shares in the company, valued at $8,618,267. This trade represents a 2.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,234 shares of company stock valued at $3,203,091 in the last 90 days. Corporate insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows Several institutional investors and hedge funds have recently modified their holdings of SMTC. Jones Financial Companies Lllp grew its holdings in shares of Semtech by 12,214.3% in the first quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company’s stock valued at $89,000 after purchasing an additional 2,565 shares during the period. Empowered Funds LLC boosted its holdings in Semtech by 11.5% in the 1st quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company’s stock valued at $323,000 after purchasing an additional 968 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Semtech by 5.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company’s stock valued at $14,166,000 after buying an additional 22,629 shares during the period. Strs Ohio acquired a new stake in shares of Semtech during the 1st quarter worth approximately $65,000. Finally, Cetera Investment Advisers acquired a new stake in shares of Semtech during the 2nd quarter worth approximately $226,000.

Semtech Stock Down 9.2% Shares of NASDAQ SMTC opened at $125.92 on Friday. The stock has a market cap of $11.73 billion, a PE ratio of -322.87 and a beta of 2.31. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86. Semtech has a 12-month low of $46.02 and a 12-month high of $177.35. The company has a 50-day moving average of $149.03 and a 200 day moving average of $110.52.

Semtech (NASDAQ:SMTC – Get Free Report) last issued its earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.06. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The business had revenue of $291.02 million for the quarter, compared to analysts’ expectations of $283.53 million. During the same period in the previous year, the firm posted $0.38 EPS. The business’s revenue for the quarter was up 15.9% compared to the same quarter last year. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. As a group, sell-side analysts predict that Semtech will post 1.81 EPS for the current fiscal year.

Analyst Upgrades and Downgrades A number of analysts have recently commented on SMTC shares. Roth Capital boosted their target price on shares of Semtech from $102.00 to $190.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. B. Riley Financial raised their price target on shares of Semtech from $165.00 to $210.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. TD Cowen lifted their price objective on Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. Robert W. Baird increased their target price on Semtech from $110.00 to $225.00 and gave the company an “outperform” rating in a report on Wednesday, May 27th. Finally, Morgan Stanley raised their target price on Semtech from $155.00 to $175.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $189.07.

Read Our Latest Analysis on Semtech

Semtech Company Profile (Get Free Report)

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.

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PHILADELPHIA--(BUSINESS WIRE)--Investor litigation firm Kaskela Law announces that it is investigating Semtech Corporation (NASDAQ: SMTC) (“Semtech”) on behalf of the company's long-term investors. Click here for additional information: https://kaskelalaw.com/case/semtech-corporation/ Recently a securities fraud complaint was filed against Semtech on behalf of investors who purchased shares of the company's stock between October 10, 2024 and February 7, 2025 (the “Wrongdoing Period”). According.

The choice between JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC 0.28%) and iShares Morningstar Small-Cap ETF (ISCB 0.46%) involves weighing a more concentrated, momentum-led portfolio against a highly diversified, ultra-low-cost fund.

Small-cap companies often drive long-term growth, though they frequently exhibit greater volatility than their large-cap counterparts. Investors choosing between these two funds are evaluating different ways to access this segment, focusing on either high-breadth indexing or a more targeted selection of small-cap firms.

Snapshot (cost & size)MetricISCBBBSCIssueriSharesJ.P. MorganShare price$75.02 (as of 2026-07-02)$90.72 (as of 2026-07-02)Expense ratio0.04%0.09%1-yr return (as of July 2, 2026)27.80%35.80%Dividend yield1.30%1.00%Beta1.051.13AUM$285.4 million$708.1 millionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the July 2 market closing price.

The iShares Morningstar Small-Cap ETF is the more affordable choice with a 0.04% expense ratio, which is 0.05 percentage points lower than its competitor. It also provides a slightly higher payout for income-seeking investors.

Performance & risk comparisonMetricISCBBBSCMax drawdown (5 yr)(29.90%)(31.00%)Growth of $1,000 over 5 years (total return)$1,379.00$1,440.00What's insideJPMorgan BetaBuilders U.S. Small Cap Equity ETF focuses its portfolio on Technology (18.9%), Healthcare (16.8%), and Financial Services (15.7%). Its largest positions include cash through a JP Morgan U.S. government money market fund (1%),  Semtech (SMTC 8.94%) at 0.6%, and FormFactor Inc (FORM 11.81%) (0.5%). The fund currently holds 728 positions and was launched in 2020. JPMorgan BetaBuilders U.S. Small Cap Equity ETF has paid $0.90 per share over the trailing 12 months, which, on its recent ~$91 share price, works out to a 1% yield.

The iShares Morningstar Small-Cap ETF tracks a benchmark of 1,557 stocks, offering broader diversification across Industrials (18.2%), Financial Services (15.9%), and Technology (15.6%). Its top holdings include Sterling Infrastructure (STRL 7.32%) at 0.4%, Okta (OKTA +0.76%) at 0.36%, Guardant Health (GH 2.77%) at 0.3%. This fund was launched in 2004. iShares Morningstar Small-Cap ETF has paid $0.95 per share over the trailing 12 months, which, on its recent ~$75 share price, works out to a 1.30% yield.

The iShares Morningstar Small-Cap ETF is the more established of these two small-cap funds, having returned an annualized 8.35% since its inception in 2004. Its performance has been good in short-term frames as well, delivering returns of 16.8% and 6.8% over the 3-year and 5-year look-backs. Its fundamental difference from the JPMorgan small-cap offering is that this ETF tracks a slightly broader Morningstar index, providing greater exposure to a broader range of small caps.

By comparison, the JPMorgan BetaBuilders U.S. Small Cap Equity ETF tracks a narrower version of the Morningstar index, which excludes several microcaps and stocks not considered easily investible due to liquidity constraints. Interestingly, BBSC is more concentrated in small caps, with 97% of its portfolio in small caps and 3% in mid-caps, compared to 9% in mid-caps for the iShares edition.

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It has been about a month since the last earnings report for Semtech (SMTC - Free Report) . Shares have added about 0.8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Semtech due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Semtech Corporation before we dive into how investors and analysts have reacted as of late.

Semtech's Q1 Earnings Surpass Estimates, Revenues Increase Y/YSemtech Corporation reported better-than-expected first-quarter fiscal 2027 results. Semtech posted non-GAAP earnings of 51 cents per share, which beat the Zacks Consensus Estimate by 13.3%. The bottom line exceeded the management’s guidance of 45 cents (+/- 3 cents) and reflected a robust year-over-year improvement of approximately 34.2%.

Semtech beat on earnings in each of the trailing four quarters, the average surprise being 6.8%.

SMTC’s first-quarter fiscal 2027 revenues of $291 million topped the Zacks Consensus Estimate by 2.7% and came above management’s guidance of $283 million (+/- $5 million). The top line jumped 16% year over year, with solid growth across all of its end markets, particularly in data centers.

Semtech’s Q1 Revenues in Terms of End MarketsThe company’s top-line performance can be attributed to the impressive year-over-year rise in its end markets.

Sales from the infrastructure market totaled $98.8 million (33.9% of net sales), exhibiting year-over-year growth of 36%, supported by the expanding data center business. A key highlight was record data center net sales of $71.6 million, rising 39% year over year, reflecting continued strength in high-speed interconnect solutions.

Sales from the industrial market amounted to $153.9 million (52.9% of net sales), up 8% year over year.

Sales from the high-end consumer market totaled $38.4 million (13.2% of net sales), up 8% year over year, as the company cited resilience and continued design win momentum.

SMTC's LoRa Growth Adds Another EngineLoRa-enabled net sales were $44.5 million, up 12% sequentially and 14% year over year, reflecting broader adoption across smart utilities, smart buildings, smart cities and asset management.

The company is positioning its fourth-generation LoRa platform to expand use cases by combining dual-band capability with higher data throughput, while maintaining the low-power attributes that underpin long-battery-life deployments.

SMTC’s Q1 Revenues in Terms of Product LinesSignal Integrity (35.1% of net sales) sales totaled $102 million, up 38.8% year over year. Analog Mixed Signal & Wireless (34.6% of net sales) sales amounted to $100.8 million, which rose 11.3% year over year.

IoT System and Connectivity (30.3% of net sales) sales totaled $88.3 million, up 1.6% on a year-over-year basis.

Semtech’s Margins in DetailsThe non-GAAP gross margin of 53% contracted 50 basis points (bps) on a year-over-year basis and expanded 140 bps sequentially.

Non-GAAP operating income increased 24.6% year over year to $59.3 million. The non-GAAP operating margin expanded to 20.4% from 19% reported in the year-ago quarter. On a quarter-over-quarter basis, non-GAAP operating income increased 18.6%, while margin expanded 220 basis points.

Semtech’s Balance Sheet & Cash FlowAs of April 26, 2026, cash and cash equivalents totaled $163.3 million, down from $195.2 million as of Jan. 25, 2026.

The long-term debt amounted to $492 million, up from the previous quarter’s reported figure of $491.2 million.

During the first quarter, Semtech generated operating cash flow and free cash flow of $36.2 million and $28 million, respectively.

Semtech Initiates Q2 FY27 GuidanceFor the second quarter of fiscal 2027, Semtech expects net sales to be $328 million (+/- $5 million).

The non-GAAP gross margin is expected to be 54% (+/- 50 bps). The non-GAAP operating margin is anticipated to be 21.9% (+/- 40 bps).

Non-GAAP earnings are expected to be 61 cents (+/- 2 cents) per share.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 12.27% due to these changes.

VGM ScoresCurrently, Semtech has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Semtech has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Key Takeaways STRL is benefiting from AI data center demand and earlier-than-planned project execution.SMTC sees AI networking demand growth, with portfolio moves focused on optical module opportunities.VIAV is witnessing strong demand from AI hyperscalers and infrastructure providers. The information technology sector has been witnessing a bull-run over the past three and half years reviving the entire U.S. stock markets single-handedly after the coronavirus-led devastation. The generic artificial intelligence (AI) technologies and their massive adoption across the globe have completely changed the Wall Street scenario. The latest advent of agentic AI is giving the space a further in every sphere of the economy.

Here, we have identified three AI-driven stocks that have provided triple-digit returns year to date. Despite having skyrocketed, these stocks currently carry double-digit upside potential for the short term. Moreover, their attractive product portfolio, solid pipeline and a favorable Zacks Rank indicate long-term prospects. 

These stocks are: Sterling Infrastructure Inc. (STRL - Free Report) , Semtech Corp. (SMTC - Free Report) and Viavi Solutions Inc. (VIAV - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our three picks year to date.

Image Source: Zacks Investment Research

Sterling Infrastructure Inc.Zacks Rank #1 Sterling Infrastructure specializes in constructing complex data centers, e-commerce distribution facilities, and manufacturing sites. The company is a major provider of high-density, AI-Powered data centers. STRL is a notable beneficiary of the massive AI data center boom.

E-Infrastructure Solutions projects develop advanced, large-scale site development systems and services for data centers, e-commerce distribution centers, warehousing, transportation, energy and more. 

Sterling’s combined offering of site development and electrical services is gaining traction faster than expected. STRL highlighted that in the first quarter of 2026, two data center campuses moved to integrated execution six to eight months earlier than planned, validating cross-sell traction and schedule compression benefits. 

STRL’s complementary investments — AI tools that increased project manager capacity by about 15% and a modular manufacturing program that will triple capacity within nearly 18 months — reduce field labor intensity and enhance quality/efficiency.

Strong Estimate Revisions and Price UpsideSterling Infrastructure has an expected revenue and earnings growth rate of 59.2% and 77.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.1% over the last 30 days. 

Moreover, STRL has an expected revenue and earnings growth rate of 29.1% and 42.1%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 5.5% over the last 30 days. 

Image Source: Zacks Investment Research

The short-term average price target of brokerage firms for the stock represents an increase of 9.7% from the last closing price of $861.88. The brokerage target price is currently in the range of $884-$1,015. This indicates a maximum upside of 17.8% and no downside. The risk/reward ratio is extremely favorable.

Semtech Corp.Zacks Rank #2 Semtech is benefiting from AI-led data center networking demand, with FiberEdge anchored in the current generation and CopperEdge widening the content opportunity as 1.6T ramps begin. 

SMTC’s LoRa is extending beyond core utilities into broader multi-protocol use cases, and management expects another step up in the next quarter. High-end consumers are also seeing share and content gains in protection and sensing. 

SMTC’s portfolio actions, including the pending cellular module divestiture and the HieFo integration, are aimed at sharpening focus and adding photonics capability in 1.6T and 3.2T optical modules.

Solid Estimate Revisions and Price UpsideSemtech has an expected revenue and earnings growth rate of 29.1% and 55.6%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 20.1% over the last 30 days. 

Moreover, SMTC has an expected revenue and earnings growth rate of 20.3% and 36%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 31.6% over the last 30 days. 

Image Source: Zacks Investment Research

The short-term average price target of brokerage firms for the stock represents an increase of 29.5% from the last closing price of $158.23. The brokerage target price is currently in the range of $175-$230. This indicates a maximum upside of 45.3% and no downside. The risk/reward ratio is extremely favorable.

Viavi Solutions Inc.Zacks Rank #2 Viavi Solutions benefits from growing demand across data center, AI infrastructure, aerospace and defense markets, supported by its comprehensive portfolio offerings. VIAV’s Spirent asset integration has expanded its presence in high-speed Ethernet and network security testing, while recent product launches enhance its capabilities in AI data center validation, cybersecurity and resilient timing applications.

VIAV’s revenue growth in Network and Service Enablement continues to be supported by demand from hyperscalers, semiconductor infrastructure providers and the broader data center ecosystem. Management highlighted momentum across scale-up and scale-out architectures tied to AI workloads and high-speed interconnect technologies. 

Recent investments in PCIe 7.0 analysis capabilities and the launch of the CyberFlood CF1000 platform expand VIAV’s ability to validate AI inference workloads, encrypted traffic and next-generation data center infrastructure. These developments strengthen exposure to long-term AI-related network testing demand and support continued growth in lab, production and field-testing solutions.

Impressive Estimate Revisions and Price UpsideViavi Solutions has an expected revenue and earnings growth rate of 20.1% and 30.9%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 0.8% over the last 30 days. 

Image Source: Zacks Investment Research

The short-term average price target of brokerage firms for the stock represents an increase of 37% from the last closing price of $47.17. The brokerage target price is currently in the range of $60-$70. This indicates a maximum upside of 48.4% and no downside. The risk/reward ratio is extremely favorable.

From a technical perspective, Semtech (SMTC - Free Report) is looking like an interesting pick, as it just reached a key level of support. SMTC recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Over the past four weeks, SMTC has gained 11.5%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.

Once investors consider SMTC's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 6 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

Investors may want to watch SMTC for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following 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 in that direction. 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 A. 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 #2 (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?Let's discuss some of the components of the Momentum Style Score for SMTC that show why this chipmaker shows promise as a solid momentum pick.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. 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 10.39% over the past week while the Zacks Semiconductor - Analog and Mixed industry is up 4.23% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 21.12% compares favorably with the industry's 1.62% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Semtech have increased 126.51% over the past quarter, and have gained 325.93% in the last year. In comparison, the S&P 500 has only moved 11.66% and 24.19%, 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 3,731,887 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 $2.19 to $2.66 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 #2 (Buy) stock with a Momentum Score of A. 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.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Semtech (SMTC - Free Report) Headquartered in Flynn Road Camarillo, CA, Semtech Corporation designs, manufactures and markets a wide range of analog and mixed- signal semiconductors for commercial applications.

SMTC is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. SMTC has a Growth Style Score of A, forecasting year-over-year earnings growth of 55.6% for the current fiscal year.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.47 to $2.66 per share. SMTC boasts an average earnings surprise of +6.8%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SMTC should be on investors' short list.

CAMARILLO, Calif.--(BUSINESS WIRE)--Semtech Announces First Quarter of Fiscal Year 2027 Conference Call.

Wall Street analysts forecast that Semtech (SMTC - Free Report) will report quarterly earnings of $0.45 per share in its upcoming release, pointing to a year-over-year increase of 18.4%. It is anticipated that revenues will amount to $283.27 million, exhibiting an increase of 12.8% compared to the year-ago quarter.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Given this perspective, it's time to examine the average forecasts of specific Semtech metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts predict that the 'Net Sales by major end markets- High-End Consumer' will reach $39.88 million. The estimate points to a change of +12.6% from the year-ago quarter.

The consensus among analysts is that 'Net Sales by major end markets- Industrial' will reach $150.88 million. The estimate indicates a change of +5.7% from the prior-year quarter.

The combined assessment of analysts suggests that 'Net Sales by major end markets- Infrastructure' will likely reach $92.34 million. The estimate indicates a year-over-year change of +26.8%.

Based on the collective assessment of analysts, 'Net Sales by reportable segment- Signal Integrity' should arrive at $98.28 million. The estimate indicates a change of +33.7% from the prior-year quarter.

The consensus estimate for 'Net Sales by reportable segment- Analog Mixed Signal and Wireless' stands at $97.90 million. The estimate points to a change of +8% from the year-ago quarter.

According to the collective judgment of analysts, 'Net Sales by reportable segment- IoT Systems and Connectivity' should come in at $86.64 million. The estimate indicates a change of -0.3% from the prior-year quarter.

View all Key Company Metrics for Semtech here>>>

Shares of Semtech have experienced a change of +30.3% in the past month compared to the +3.3% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), SMTC is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

On May 21, 2026, Semtech Corp SMTC shares rose 3.3% today, reaching a current price of $146.53. Over the last month, the stock has rallied significantly, recording a 41.6% increase, while year-to-date performance stands at an impressive 98.8%. The stock has experienced a substantial rise over the past year, gaining 280.5%, with a 52-week high of $149.52 and a low of $34.59.

GF Value™ verdict: Current price of $146.53 is 317.1% above GF Value™ of $35.13, indicating overvaluation.GF Score™ of 69/100 suggests an above-average rating, indicating potential for long-term returns.Most notable signal: Insiders sold $3.2M worth of shares in the last three months, with no buying activity. Is SMTC Overvalued or Undervalued? According to the GF Value™, Semtech Corp currently appears significantly overvalued with a fair value estimation of $35.13 compared to its trading price of $146.53. This represents a margin of safety of -317.1%, indicating a high level of risk associated with the current stock price. The GF Valuation label further confirms this perspective, categorizing the stock as significantly overvalued. Investors considering this stock should be cautious, as the considerable disparity between the market price and intrinsic value could suggest potential correction in the future.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the stark contrast between Semtech's current price and its estimated intrinsic value, investors may need to reassess their expectations regarding future price appreciation and potential downside risks.

How Does SMTC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 66.1x 37.0x Semtech's current forward P/E of 66.1x is significantly higher than its 5-year median P/E of 37.0x. This analysis indicates that the stock is trading above its historical valuation metrics, which aligns with the GF Value™ conclusion of overvaluation. The elevated P/E ratio suggests that the market has high expectations for future earnings, but such high multiples can lead to increased vulnerability to earnings disappointments.

What Does SMTC's GF Score™ Tell Us? Metric Rating GF Score™ 69 Financial Strength 7/10 Profitability 6/10 Growth 6/10 Valuation 1/10 Momentum 9/10 The GF Score™ of 69/100 reflects an above-average rating, indicating potential for long-term returns. The strongest area for Semtech lies in its momentum rank of 9/10, suggesting positive price trends and investor interest. However, the valuation rank of 1/10 highlights the significant concern regarding its current market price relative to intrinsic value, suggesting that while financial strength and profitability are acceptable, the overvaluation may pose risks to future performance.

What Are Insiders Doing with SMTC Stock? Recent insider activity for Semtech shows that insiders have sold $3.2 million worth of shares in the last three months, with no buying activity reported. This pattern of selling could indicate a lack of confidence from management regarding the stock's future performance or a desire to capitalize on the recent price increases. Such selling can be a red flag for potential investors, as it may suggest that insiders believe the stock is overvalued at current levels.

What This Means for Investors Based on the GF Value™ assessment, Semtech Corp is currently overvalued. The significant gap between the market price and the estimated intrinsic value raises concerns about potential downside risks as the market corrects itself. Investors are advised to carefully evaluate their positions in light of these valuations and insider activities.

For the complete analysis, visit the Semtech Corp SMTC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SMTC's GF Score™?

SMTC has a GF Score™ of 69/100, indicating an above-average rating that suggests potential for long-term returns based on historical performance.

Is SMTC overvalued or undervalued?

SMTC is currently deemed overvalued according to GF Value™, with its price significantly above the estimated intrinsic value, indicating a potential risk for investors.

What is SMTC's P/E ratio?

SMTC's forward P/E ratio stands at 66.1x, which is higher than its 5-year median P/E of 37.0x, confirming the stock's overvaluation relative to its historical earnings multiples.

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].

Chipmaker Semtech (SMTC) late Tuesday beat analyst estimates for its fiscal first quarter and with its guidance for the current quarter. Semtech stock rose in extended trading.

The Camarillo, Calif.-based company earned an adjusted 51 cents a share on sales of $291 million in the quarter ended April 26. Analysts polled by FactSet had expected earnings of 45 cents a share on sales of $283.5 million. On a year-over-year basis, Semtech earnings increased 34% while sales rose 16%.

↑ X NOW PLAYING The AI Inference Pivot: Why 2026 Could Be The Most Complex Chip Cycle In Decades

For the current quarter, Semtech forecast adjusted earnings of 61 cents a share on sales of $328 million. Wall Street was modeling earnings of 52 cents a share on sales of $300.7 million for fiscal Q2. In the same quarter last year, it earned an adjusted 41 cents a share on sales of $257.6 million.

Semtech is a provider of chips for data center networking, Internet of Things connectivity and cellular infrastructure solutions. Lately it has gotten a lift from sales of high-bandwidth, low-power chips and networking gear for AI data centers.

Semtech Stock Is A Recent Breakout In after-hours trading on the stock market today, Semtech stock climbed nearly 6% to 174. During the regular session Tuesday, Semtech stock rose 4.9% to close at 164.46. Earlier in the day, it hit a regular-session record high of 168.29.

"Semtech is off to an exceptional start in fiscal year 2027, delivering record quarterly results and expanding design wins across our data center and LoRa businesses," Chief Executive Hong Hou said in a news release. "As FiberEdge and CopperEdge 1.6T revenues layer onto our strong growth base, we expect data center growth to accelerate throughout the year."

He added, "The strength and depth of our bookings and backlog, a broad and well-positioned product portfolio, and targeted R&D investments aligned to customer roadmaps give us strong conviction in our growth trajectory ahead."

On April 16, Semtech stock broke out of a cup base at buy point of 96.46, according to IBD MarketSurge charts.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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How Semtech’s Data Center Chips Are Powering the AI BoomSemtech NASDAQ: SMTC reported record quarterly revenue for its first quarter of fiscal 2027, driven by strength in its data center and LoRa businesses, and issued a second-quarter outlook that calls for continued acceleration across its major segments.

President and Chief Executive Officer Hong Hou said the company delivered “an exceptional start” to fiscal 2027, with revenue of $291 million for the quarter ended April 26, 2026. That was up 6% sequentially and 16% year over year. Adjusted diluted earnings per share were $0.51, up 34% from the prior year.

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Why Semtech Stock Is Rallying After Its NVIDIA Setback“We drove strong sequential and year-over-year revenue and earnings growth, expanded our data center and the LoRa design win pipeline, all while advancing our R&D and strategic initiatives,” Hou said.

Chief Financial Officer Mark Lin said the quarter marked Semtech’s ninth consecutive quarter of net sales growth. Adjusted gross margin was 53%, while total semiconductor products gross margin was 60.7%, reflecting a favorable mix from the company’s data center and LoRa portfolios. Adjusted operating income was $59.3 million, adjusted operating margin was 20.4%, and adjusted EBITDA was $66.4 million.

Data Center Demand Drives Infrastructure Growth Semtech: Bullish Market Forces Come Into Alignment for This StockSemtech’s infrastructure net sales were $98.8 million, up 14% sequentially and 36% year over year. Data center net sales reached a record $71.6 million, up 14% sequentially and 39% from the year-ago period.

Hou attributed the data center performance to strong demand across the company’s portfolio, particularly its 800G FiberEdge products. He said demand for Semtech’s transimpedance amplifier, or TIA, solutions was “exceptionally strong” across a broad range of transceiver programs. He also said established and emerging module suppliers had qualified Semtech for new sockets, including some sole-source positions.

The company also cited momentum in 800G linear pluggable optics, or LPO, and said its FiberEdge linear TIA and driver solutions are deployed by several leading hyperscalers in the U.S. and China. Hou said Semtech expects its 800G foundation to support revenue growth this year, with 1.6T shipments launching in the second quarter and gaining momentum in the second half.

On the copper side, Hou said Semtech began shipping CopperEdge 1.6T integrated circuits in the first quarter to cable partners for deployment at a U.S. hyperscaler. He said active copper cable, or ACC, products continue to gain traction as customers evaluate them against incumbent solutions.

During the question-and-answer portion of the call, Hou said capacity remains critical in the current environment. “This is a time capacity is king,” he said, adding that Semtech began working on availability about 18 months ago. He said the company can support drop-in orders and is working with foundry and outsourced semiconductor assembly and test partners to further expand capacity.

LoRa Business Enters New Growth Phase Industrial net sales were $153.9 million, up 2% sequentially and 8% year over year. LoRa-enabled net sales were $44.9 million, up 12% from the prior quarter and 14% from the year-ago period.

Hou said LoRa growth was supported by applications including smart utilities, smart buildings, smart cities and asset management. He said Semtech’s fourth-generation LoRa platform expands throughput to 2.6 Mbps while retaining low power consumption, sensitivity and protocol flexibility.

He described three pillars for the low-power connectivity business: LoRaWAN for industrial and commercial deployments, LoRa Plus for smart home and security markets, and Amazon Sidewalk for mass-market consumer applications. For the second quarter, Semtech is targeting LoRa revenue at an all-time high, with more than 15% sequential quarterly growth.

In the Q&A session, Hou said growth has increasingly included gateway expansion, which he said indicates customers are adding capacity and coverage to support more end-node applications. He also identified edge AI as a potential “wild card” opportunity for LoRa.

Consumer and IoT Businesses Show Mixed Trends High-end consumer net sales were $38.4 million, up 5% sequentially and 8% year over year. Hou said Semtech’s transient voltage suppressor, or TVS, business continued to outpace underlying handset volumes, helped by share gains and content expansion at premium handset manufacturers.

He also highlighted the company’s SurgeSwitch solution for high-voltage power delivery applications and said Semtech continues to expand PerSe capacitive sensor design wins.

IoT systems and connectivity net sales were $88.3 million, down 2% sequentially but up 2% year over year. Hou said the newly released AirLink RX400 and AirLink EX400 routers were receiving strong customer feedback, particularly for mission-critical low-power 5G cellular applications.

Portfolio Optimization and Hyfo Acquisition Hou said the divestiture process for Semtech’s cellular module business is in its final stages, with discussions focused on transition and integration matters. He said the company remains confident the business represents a compelling opportunity for the right acquirer.

Semtech also discussed the Hyfo acquisition, completed in March. Hou said Hyfo’s indium phosphide photonic products are reported in the data center end market and are strategic building blocks for 1.6T and 3.2T optical modules. He said demand for gain chips currently exceeds supply, though capacity expansion plans remain on schedule.

In response to an analyst question, Hou said aggregate demand for gain chips could outpace current capacity by about three times. He said Semtech expects to increase capacity by about three to four times by the end of the year, and by another three to four times by the end of next year.

Second-Quarter Outlook Calls for Further Growth For the second quarter of fiscal 2027, Semtech expects net sales of $328 million, plus or minus $5 million. At the midpoint, that would represent 13% sequential growth and 27% year-over-year growth.

The company expects data center revenue to grow 35% sequentially in the second quarter, supported by accelerating shipments of 800G and 1.6T components. Hou said that would represent 85% growth over the same period last year.

Lin said Semtech expects adjusted gross margin of 54%, plus or minus 50 basis points, and total semiconductor products gross margin of 62.1%, plus or minus 50 basis points. Adjusted operating margin is expected to reach 21.9% at the midpoint, while adjusted EBITDA is expected to be $79.2 million, plus or minus $2.3 million.

Semtech projected adjusted diluted earnings per share of $0.61, plus or minus $0.02, based on a weighted average share count of 97.7 million. At the midpoint, that would be up 20% sequentially and 49% year over year.

Hou said the company expects accelerating demand through fiscal 2027 and beyond, supported by backlog, bookings and new product ramps. “Our data center business is firing on all cylinders,” he said. “LoRa is entering a new chapter of growth.”

About Semtech NASDAQ: SMTCSemtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company's products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech's portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Semtech Right Now?Before you consider Semtech, you'll want to hear this.

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Semtech (SMTC - Free Report) reported $291 million in revenue for the quarter ended April 2026, representing a year-over-year increase of 15.9%. EPS of $0.51 for the same period compares to $0.38 a year ago.

The reported revenue represents a surprise of +2.73% over the Zacks Consensus Estimate of $283.27 million. With the consensus EPS estimate being $0.45, the EPS surprise was +12.51%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Semtech performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales by reportable segment- IoT Systems and Connectivity: $88.3 million compared to the $86.64 million average estimate based on two analysts. The reported number represents a change of +1.6% year over year.Net Sales by reportable segment- Signal Integrity: $102 million compared to the $98.28 million average estimate based on two analysts. The reported number represents a change of +38.7% year over year.Net Sales by reportable segment- Analog Mixed Signal and Wireless: $100.8 million versus $97.9 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.2% change.View all Key Company Metrics for Semtech here>>>

Shares of Semtech have returned +54.8% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

On May 26, 2026, Semtech Corp SMTC shares rose 4.9% to a current price of $164.43. The stock has demonstrated impressive price performance, with a 52-week range between $34.59 and $168.29.

GF Value™ verdict: The current price is $164.43, compared to a GF Value™ of $35.30, indicating a 365.8% overvaluation. GF Score™: 69/100, which suggests an above-average potential for long-term returns. Notable signal: Insider activity shows that insiders sold $3.2M in shares over the last three months, with no buying activity recorded. Is SMTC Overvalued or Undervalued? According to the GF Value™ metric, Semtech Corp is significantly overvalued at its current price of $164.43 compared to the intrinsic value estimate of $35.30. This presents a substantial margin of safety issue, as the stock is priced at an astounding 365.8% above its calculated fair value. The GF Valuation label indicates a clear signal of overvaluation, which suggests that the current market price may not be sustainable and poses a risk for potential investors.

The wide disparity between the current market price and the GF Value™ indicates that Semtech Corp's share price may be driven more by investor sentiment and momentum rather than fundamentals. This overvaluation poses significant risks, as a market correction could lead to a swift decline in stock price if the company's performance does not support such a high valuation.

How Does SMTC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 74.2x 37.0x Currently, Semtech Corp's forward P/E is 74.2x, which is significantly above its 5-year median P/E of 37.0x. This analysis indicates that the stock is trading well above its historical valuation levels, which aligns with the GF Value™ verdict of overvaluation. The elevated P/E ratio further reinforces the cautionary stance on the stock's current valuation, suggesting that investors may face substantial risk if the market corrects itself.

What Does SMTC's GF Score™ Tell Us? Metric Rating GF Score™ 69/100 Financial Strength 7/10 Profitability 6/10 Growth 6/10 Valuation 1/10 Momentum 9/10 The GF Score™ of 69/100 indicates that Semtech Corp has a solid overall rating, driven primarily by strong financial strength (7/10) and high momentum (9/10). However, the valuation rank is notably weak at 1/10, which aligns with the findings from the GF Value™ analysis, indicating a significant overvaluation. The profitability and growth rankings are average (6/10), suggesting that while the company is performing well, the price may not reflect its true intrinsic value.

What Are Insiders Doing with SMTC Stock? Recent insider activity for Semtech Corp reveals that insiders sold $3.2 million worth of shares over the past three months, with no buying activity reported during this period. This trend may suggest a lack of confidence from insiders regarding the company’s current valuation and future performance. The absence of insider buying further corroborates the concerns raised by the significant overvaluation indicated by GF Value™.

What This Means for Investors Overall, Semtech Corp SMTC is currently overvalued based on the GF Value™ assessment, which indicates a substantial margin of overvaluation at 365.8%. This suggests that investors should exercise caution, as the stock may be vulnerable to a correction if the intrinsic value does not align with market sentiment.

For the complete analysis, visit the Semtech Corp SMTC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SMTC's GF Score™?

SMTC's GF Score™ is 69/100, indicating above-average potential for long-term returns based on various financial metrics.

Is SMTC overvalued or undervalued?

According to the GF Value™ verdict, SMTC is overvalued, priced significantly above its intrinsic value, which suggests caution for potential investors.

What is SMTC's P/E ratio?

SMTC's forward P/E ratio is 74.2x, which is considerably higher than its 5-year median P/E of 37.0x, indicating a significant overvaluation compared to its historical levels.

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].

Semtech stock is approaching key resistance levels. What’s driving SMTC to record levels? Q1 HighlightsSemtech reported adjusted earnings per share of 51 cents, beating the consensus estimate of 45 cents. In addition, it reported revenue of $291.00 million, beating the consensus estimate of $283.44 million.

"Semtech is off to an exceptional start in fiscal year 2027, delivering record quarterly results and expanding design wins across our data center and LoRa businesses," said President and CEO Hong Hou.

Hou said the company expects data center growth to accelerate throughout the year as FiberEdge and CopperEdge 1.6T revenues build on existing growth momentum.

"The strength and depth of our bookings and backlog, a broad and well-positioned product portfolio, and targeted R&D investments aligned to customer roadmaps give us strong conviction in our growth trajectory ahead," Hou said.

Executive Vice President and CFO Mark Lin said the company demonstrated "meaningful operating leverage" in the first quarter and noted that strong operational fundamentals support improving metrics reflected in the company's second-quarter outlook.

GuidanceSemtech expects second-quarter adjusted EPS of 59 cents to 63 cents, versus the 51 cent consensus estimate, and revenue in a range of $323 million to $333 million, versus the $300.63 million estimate.

Analyst Consensus & Recent ActionsThe stock carries a Buy rating with an average price target of $147.50. Recent analyst moves include:

Needham: Buy (Raises Target to $200.00) (May 27) Baird: Outperform (Raises Target to $225.00) (May 27) Overbought Conditions Emerge As Rally AcceleratesSemtech is extending a powerful long-term uptrend, up 324.08% over the past 12 months, and Wednesday's premarket push is keeping price well above every major moving average. The stock is trading 45.4% above its 20-day SMA ($127.60) and 132.7% above its 200-day SMA ($79.73), which is classic "extended trend" behavior rather than a mean-reversion setup.

Momentum is the key story right now: RSI is 78.93, which flags an overbought condition and tells you the move is getting stretched versus its recent pace. Overbought doesn't automatically mean "sell," but it does raise the odds of sharp pullbacks or sideways digestion if buyers stop pressing.

From a trend-structure standpoint, the 20-day SMA remains above the 50-day SMA (bullish), and the stock is still benefiting from the golden-cross backdrop (50-day SMA above the 200-day SMA) that formed in August 2025. The most recent swing high and the 52-week high were set in May, and the stock is now trading above that prior 52-week high ($168.29), turning an old ceiling into a potential reference point for dip-buyers.

Key Resistance: $180.50 — the stock is pressing into fresh highs above the prior 52-week peak, so price discovery is the main friction point Key Support: $168.29 — the prior 52-week high zone is the nearest obvious "breakout retest" level if the gap cools Semtech Stock SoarsSMTC Price Action: At the time of publication, Semtech shares are trading 12.51% higher at $185.03, according to data from Benzinga Pro.

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Semtech NASDAQ: SMTC has emerged as a critical AI play for several reasons. At face value, its data center products are crucial for connectivity and networking; they unlock the power of hardware, efficiently linking servers, large clusters, racks, and data centers. The bigger picture is more impressive. Not only is Semtech well-positioned for data center growth, but it is also well-positioned for telecommunications and the Internet of Things (IoT), which enable the application of AI at the edge.

Semtech Today

$163.57 +9.29 (+6.02%)

As of 06/11/2026 04:00 PM Eastern

52-Week Range$39.07▼

$172.35Price Target$179.73

The company's recent earnings report showed that business is good across product lines, particularly in data centers, a trend expected to accelerate.

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Takeaways from other leading AI names include the impact of AI infrastructure spending, which leads to applications, new use cases, and increased demand.

With this in play, investors can only expect Semtech’s three business specialties to continue strengthening and to persist for the foreseeable future.

In this scenario, Semtech’s consensus forecasts are far too low, setting the stage for a persistent cycle of outperformance and analyst upgrades.

Semtech’s Blowout Q1 Confirms AI Spend Is RealSemtech’s earnings report is important to its market because it reflects growing strength in the hottest market since the DotCom bubble. The company's earnings confirm that capital expenditure plans, data center buildout, and AI infrastructure growth are real. The company reported $291 million in net revenue, a drop in a bucket compared to NVIDIA’s NASDAQ: NVDA quarterly haul, but this is a nuts-and-bolts play, not the primary hardware. The important details include revenue growth approaching 16% year over year (YOY), outpacing the consensus by more than 250 basis points (bps), and a continued acceleration forecast for the current quarter.

Margin news was also bullish. GAAP results were mixed, including non-cash impairments and share-based compensation, but the adjusted results were more clearly positive. They revealed wider margins and record-setting results, with adjusted earnings per share (EPS) up 34% YOY and more than 1000 bps above target.

Guidance is why new highs are likely for this stock. The company expects revenue to grow by more than 12% sequentially and 27% YOY in the next quarter and is likely cautious in its estimate. The likely outcome is that Semtech outperforms and provides another bullish guide, keeping the analysts in revision mode.

The analyst response to Semtech’s results and guidance was mixed: two ratings were reduced to Market Perform or equivalent, but this was offset by more price target increases. Those increases highlight Semtech’s business shift, as they increased the consensus estimate by more than 75% almost overnight. The consensus forecasts a fresh high as of late May; the high end of the range would be sufficient to add 30% to that high.

Institutions Cap Semtech Gains in Q2 2026Institutions are a risk for investors to note. They own a substantial 99.45% of the stock and have been selling into the rally. If this continues, SMTC shares will struggle to advance unless a sufficiently strong catalyst emerges. In this scenario, retail traders and FOMO may take control, ultimately resulting in volatility and potentially lower stock prices. The more likely scenario, however, is that the institutional headwind diminishes now that the Q1 results are in.

The question is whether the institutions revert to accumulating SMTC, and that may not come without a stock price correction. SMTC shares advanced more than 100% in April and May, extending well above any level that could be called strong support. The worst-case scenario is that this stock pulls back, potentially to $138 or lower, while the best-case is that SMTC consolidates at or near the late-May highs until later in the year when more news is available.

SMTC Stock: Correction Ahead, But the Trend Is Your FriendThe chart price action is very bullish, but also shows a high likelihood of a correction before new highs are set. The key factor is the MACD convergence, which says new highs are likely despite the correction; it’s only a matter of time. Among the risks for traders is the depth and timing of the rebound, which may not come until late summer. Other risks include valuation, which reflects a robust growth trajectory. Any signs of weakness, slowing, hiccups, or delays will be reflected in the stock price.

Catalysts include demand for next-gen products, including optical, sensing, and power handling technology, and capacity expansions. Execs say demand is outstripping supply and plan to double or triple existing production. Plans include expanding existing production facilities, outsourcing manufacturing and pursuing strategic partnerships alongside nearshoring or onshoring capacity. Shipments of next-gen products are already underway and expected to ramp over the coming quarters.

Should You Invest $1,000 in Semtech Right Now?Before you consider Semtech, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Semtech wasn't on the list.

While Semtech currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.

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Shares of Semtech (SMTC - Free Report) have gained 16.3% over the past four weeks to close the last trading session at $158.79, 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 $204.83 indicates a potential upside of 29%.

The average comprises 12 short-term price targets ranging from a low of $175.00 to a high of $230.00, with a standard deviation of $16.41. While the lowest estimate indicates an increase of 10.2% from the current price level, the most optimistic estimate points to a 44.9% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

But, for SMTC, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in SMTCThere 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.

For the current year, six estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 12.9%.

Moreover, SMTC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much SMTC could gain, the direction of price movement it implies does appear to be a good guide.