Semtech today
(As of 10:58 a.m. ET)
- 52 week range
- $18.16
▼
$70.27
- Target price
- $68.70
Semtek company. NASDAQ: SMTS manufactures analog and mixed chips that provide optical data transmission, readout and advanced high-speed communications solutions. Its products are used in consumer electronics, infrastructure, industrial applications, data centers and Internet of Things (IoT) systems. The company’s results are impressive as its revenue returned to growth from the first quarter of fiscal 2025, with third-quarter revenue up 18% year over year. The computer and technology sector company supplies its products Apple Inc. NASDAQ:AAPL, Amazon.com Inc. NASDAQ:AMZN, QUALCOMM Inc. NASDAQ:QCOM And Intel Company NASDAQ: INTK.
Semtech is benefiting from robust demand for artificial intelligence (AI) applications, data centers and the Internet of Things, which is driving its improvement despite stiff competition from companies such as Texas Instruments Inc. NASDAQ: Texas, Broadcom Inc. NASDAQ: AVGO And Microchip Technology Inc. NASDAQ: MPP.
The turnaround has already begun: Semtech returns to growth in the third quarter
Semtech’s revenue has grown steadily since bottoming out in the first quarter of 2025, down 13% YoY, which was followed by the second quarter improving to a decline of 10% YoY. The third quarter was a turning point as revenue turned positive, growing 18% YoY, with fourth quarter estimates pointing to 30% YoY growth. Its third-quarter earnings per share beat consensus estimates by 3 cents at 23 cents. Its revenue grew 18% YoY and 10% sequentially to $236.8 million, well above the consensus estimate of $232.89 million. Data center revenue rose 78% YoY and 58% sequentially to a record $43.1 million Non-GAAP gross profit increased 200 bps. up to 52.4%. Non-GAAP operating margin increased 410 bps. up to 18.3%.
Revenue distribution by end markets and segments
The majority of third-quarter revenue, or 53% ($131 million), was generated from the industrial end market, which includes IoT, industrial radio frequency, circuit protection and long-range (Lo-Ra) solutions. The end infrastructure market contributed 28% or $65.8 million of revenue, representing data center revenues and the supply of CopperEdge used in 1.6T active copper cabling.
The high-end consumer products end market contributed 17% of total revenue or $40 million. These revenues include consumer circuit protection and PerSe proximity sensing solutions. The Analog Mixed Signal, Wireless and IoT, and Connectivity segments each contributed 35% of revenue, with signal integrity contributing 30% in Q3 2025.
Semtech gives higher forecasts on the upper and lower bounds of FQ4
Semtech stock forecast today
$68.70
Growth potential 3.84%Moderate purchase
Based on ratings from 12 analysts
| High forecast | $85.00 |
|---|---|
| Average forecast | $68.70 |
| Low forecast | US$50.00 |
Semtech Stock Forecast Details
The company issued guidance for earnings per share growth of 29 cents to 35 cents for the fiscal fourth quarter of 2025, compared with the consensus estimate of 27 cents. Semtech forecasts revenue of $245 million to $255 million, versus the consensus estimate of $242.03 million. Non-GAAP gross margin is expected to be 52.3% to 53.3% and non-GAAP operating margin is expected to be 19% to 20%. .4%.
Semtech CEO Hong Hu was optimistic, commenting: “We are very pleased to report broad growth in each of our end markets, and especially in the data center, where we predict demand for AI-enabled products will become a long-term and transformative factor. The growth engine of Semtech. Our results confirm that our customers and target markets are moving towards us and highlight the effectiveness of our initiatives to increase market share and expand SAM.”
SMTC attempts a bull flag breakout
The bull flag pattern consists of two parts. First, the underlying stock forms a flagpole, which is a sharp jump in the stock’s price, usually at an angle of 45 degrees or greater. The flagpole ends when the stock reaches its peak. The flag is formed on parallel descending trend lines consisting of lower highs and lower lows. A bull flag is triggered when the stock breaks the upper downtrend line and passes the top of the flagpole.
SMTC shares rose on the gap to $70.27 on its 2025 third-quarter earnings report, completing the flagpole. Parallel descending trend lines formed a flag that bottomed at $61.40. The bull flag attempt triggered a breakout of $64.99, but .618 Fib resistance at $68.68 capped the rebound. SMTC will need to break the flagpole peak at $70.27 to complete the bull flag breakout. The daily pegged VWAP slowly rises to $61.13. The daily RSI is at the 64-band level. Fibonacci (Fibonacci retracement support levels are located at $62.39, $57.61, $53.64 and $50.61.
SMTC’s average target price is $68.70which implies a growth potential of 5.45%. and his highest analyst price target is at US$85. Ten analysts rate the stock a buy, while two rate it a hold. The stock’s short interest is 9.71%.
Actionable Option Strategies: Bullish investors may consider using cash-backed puts at Fibonacci retracement support levels to buy SMTC on the dip. In the case of stock assignment, writing covered calls at high Fibonacci levels implements a wheel strategy to generate income.
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