Zacks Investment Research·1d ago
Semtech Stock Plunges 34% in 3 Months: Should You Buy the Dip?SMTC shares plunge 34% in three months, but strong AI data center demand, 1.6T growth and rising LoRa adoption make the stock an attractive buy.
Semtech appears to be in a strong cyclical recovery, with revenue growth accelerating to 32.7% YoY in 2027Q2 and gross margins expanding to 53.8%, suggesting successful integration of Sierra Wireless and improved pricing power.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has accelerated sharply to 32.7% YoY in 2027Q2, driving a 560 basis point gross margin expansion to 53.8% and unlocking operating leverage with a 16.3% operating margin.
Semtech is a leading provider of high-performance semiconductors powering AI data center networking, with strong demand for its 800G optical products.
The bull case assumes accelerating adoption of LoRa/IoT solutions, driven by Semtech's connectivity licensing and recurring revenue streams.
Improving gross margins are expected from higher average selling prices (ASPs) and recurring connectivity licensing revenue.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 25, 2026 | $0.71+15.6% vs $0.61 | $342M+4.0% vs $329M |
Q2 2026 May 26, 2026 | $0.51+12.4% vs $0.45 | $291M+2.6% vs $284M |
Q2 2026 Mar 16, 2026 | $0.44+2.3% vs $0.43 | $274M+0.4% vs $273M |
Q4 2025 Nov 24, 2025 | $0.48+7.9% vs $0.44 | $267M+0.2% vs $266M |
SMTC shares plunge 34% in three months, but strong AI data center demand, 1.6T growth and rising LoRa adoption make the stock an attractive buy.
Semtech (SMTC) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
CMRC, MNDY, SMTC and TLS make the cut as the top liquid stocks, each boasting strong liquidity, growth attributes and operational efficiency.
Semtech's AI data center growth, rising 1.6T demand and lower valuation give it an edge over Navitas Semiconductor.
Benchmark SMTC against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Semtech Corporation (SMTC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $103.21 | $9.61B | -224.37 | — | -3.85% | -7.35% | — | |
| $221.50 | $7.31B | -111.87 | 34.29% | -4.57% | -3.59% | — | |
| $416.92 | $11.01B | -242.39 | 61.16% | 3.01% | 1.27% | — | |
| $77.36 | $3.55B | 54.10 | 13.04% | 5.27% | 4.38% | — | |
| $40.26 | $2.24B | 103.23 | 5.85% | 5.58% | 3.72% | 2.08% | |
| $1190.44 | $58.49B | 93.37 | 26.43% | 23.85% | 24.04% | 0.5% |
Semtech Corporation (SMTC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Semtech Corporation (SMTC) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 25, 2026·SEC
Aug 13, 2026·SEC
May 26, 2026·SEC
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Semtech Corporation (SMTC) stock FAQ — growth, dividends, profitability & financials explained
Semtech Corporation (SMTC) reported $1.18B in revenue over the trailing twelve months. Revenue was $1.05B in fiscal year 2026. That is 1506% more than the $65.4M of fiscal year 1997.
Yes. Semtech Corporation (SMTC) earned $127.0M in net income over the trailing twelve months (a 10.7% net margin).
Semtech Corporation (SMTC) had a return on equity (ROE) of -7.3% in fiscal year 2026. A negative ROE means the company lost money over the period.
Semtech Corporation (SMTC) generated $184.2M in free cash flow over the trailing twelve months.
