Semtech’s Strong Q1 Performance and Growth Prospects Justify Buy Rating with $54 Price Target

Analyst Quinn Bolton from Needham maintained a Buy rating on Semtech (SMTC – Research Report) and keeping the price target at $54.00.

Quinn Bolton’s rating is based on several positive developments at Semtech. The company has reported strong results for the first quarter of fiscal year 2026, with significant contributions from data center infrastructure shipments and LoRa-enabled solutions. The demand for data center products remains strong, and Semtech has achieved a record quarter in this segment. This momentum is expected to continue into the second half of fiscal year 2026, supported by the growth in FiberEdge and non-NVIDIA CopperEdge products.
Furthermore, although there is an anticipated decline in LoRa-enabled solutions in the second quarter due to a customer’s pre-launch build, Semtech is confident in maintaining a steady quarterly run rate for these products. Additionally, the company has begun disclosing segment gross margins, revealing a robust semiconductor product gross margin of nearly 64% in the first quarter. These factors collectively support the Buy rating, with a price target of $54 based on a projected earnings per share estimate.

Bolton covers the Technology sector, focusing on stocks such as D-Wave Quantum, Intel, and Microchip. According to TipRanks, Bolton has an average return of 20.7% and a 50.91% success rate on recommended stocks.

In another report released today, Robert W. Baird also reiterated a Buy rating on the stock with a $50.00 price target.