Semtech today
(as of 12/16/2024 ET)
- 52-week range
- $18.16
▼
$70.27
- Price target
- $68.70
Semtech Co. NASDAQ: SMTC Makes analog and mixed-signal chips that enable optical data transmission, sensing, and advanced high-speed connectivity solutions. Its products are used in consumer electronics, infrastructure, industrial applications, data centers, and Internet of Things (IoT) systems. The company’s turnaround is impressive as its revenue has returned to growth since its fiscal first quarter of 2025, with its latest FQ3 YoY revenue up 18%. The Computer and technology field The company supplies its products to Apple Inc. NASDAQ: AAPL, Amazon.com Inc. NASDAQ: AMZN, Qualcomm Inc. NASDAQ: QCOM And Intel Co. NASDAQ: INTC.
Semtech is benefiting from strong demand in artificial intelligence (AI) applications, data centers, and IoT, which is driving its turnaround despite tough competition from the likes. Texas Instruments Inc. NASDAQ: TXN, Broadcom Inc. NASDAQ: AVGO And Microchip Technology Inc. NASDAQ: MCHP.
The turnaround is underway as Semtek returns to development in FQ3
Semtech’s revenue has been growing steadily since its low in FQ1 2025, down 13% YoY, after improving to 10% YoY in FQ2. FQ3 was the infection quarter as revenues turned positive, growing 18% YoY, Q4 estimates point to 30% YoY growth. Its FQ3 EPS beat consensus estimates by 3 cents, coming in at 23 cents. Its revenue rose 18% YoY and 10% sequentially to $236.8 million, well beating consensus estimates for $232.89 million. Data center revenue grew 78% YoY and 58% sequentially to a record $43.1 million. Non-GAAP gross margin increased 200 bps to 52.4%. Non-GAAP operating margin increased 410 bps to 18.3%.
Revenue breakdown by end market and segment
The majority of FQ3 revenue, or 53% at $131 million, was derived from the industrial end market, which includes IoT, radio frequency industrial, circuit protection, and long-range (Lo-Ra) enabled solutions. Infrastructure & Markets generated revenue of 28% or $65.8 million, reflecting data center revenue and shipments of its CopperEdge used in 1.6T active cable copper.
The high-end consumer end market generated 17% of total revenue, or $40 million. These revenues include consumer circuit protection and PerSe proximity sensor solutions. Analog mixed signal and wireless and IoT systems and connectivity segments generated 35% of revenue, and signal integrity generated 30% in FQ3 2025.
Semtech leads with higher FQ4 top and bottom line forecasts
Semtech stock forecast today
$68.70
Up 0.63%buy medium
Based on 12 analyst ratings
| High forecast | $85.00 |
|---|---|
| Average forecast | $68.70 |
| Less predictable | $50.00 |
The company issued EPS of 29 cents to 35 cents for the fiscal fourth quarter of 2025, compared to consensus estimates of 27 cents. Semtech forecast revenue of $245 million to $255 million, compared with consensus estimates of $242.03 million. Non-GAAP gross margin is expected to be between 52.3 and 53.3% and non-GAAP operating margin is expected to be between 19% and 20.4%.
“We are very pleased to report broad-based growth in each of our end markets, and particularly in the data center, where we see long-term demand for AI-powered products,” enthused Semtech CEO Hong Hu. Projected to be timely and transformative. Our results for Semtech validate that our customers and target markets are moving towards us and highlight the effectiveness of our initiatives to drive market share gains and SAM. are. expansion.”
SMTC attempts a bull flag breakout
A bull flag pattern is made up of two parts. First, the underlying stock forms a flagpole, which is a sharp run in the stock’s price, usually at a 45-degree or higher angle. The flagpole is completed when the stock makes its top. Flags are formed on parallel descending trends with lower highs and lower lows. A bull flag is triggered when the stock rises above its upper downtrend line and crosses the top of the flagpole.
SMTC widened the gap to $70.27 on its FQ3 2025 earnings release to meet Flagpole. Parallel downtrends formed a flag, which was down at $61.40. A bull flag attempt triggered a breakout through $64.99, but the 0.618 Fib resistance at $68.68 stopped its bounce. SMTC would need to break the flagpole top at $70.27 to complete a bull flag breakout. The daily anchored VWAP is slowly rising at $61.13. The daily RSI is flat at the 64-band. Fibonacci (Fib) Pullback support levels are at $62.39, $57.61, $53.64, and $50.61.
Average of SMTC Agreed price target is $68.70This represents an increase of 5.45% And it has the highest analyst price target $85.00. Ten analysts have rated the stock with a buy, while two have assigned a hold rating. The stock has 9.71% short interest.
Actionable alternative strategies: Bullish investors may consider using Cash-secured put At Fib pullback support levels to buy a dip at SMTC. If shares are assigned, writing covered calls at upper Fib levels a Wheel strategy For income.
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