Semtech Corp. (SMTC)
NASDAQ:SMTC
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Semtech
(NASDAQ:SMTC)
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Rating:69Neutral
Price Target:
$164.00
▲(52.26% Upside)
Action:Reiterated
Date:05/28/26
SMTC’s score is driven by strong technical momentum and a notably upbeat earnings outlook (accelerating revenue growth and expanding margins). Offsetting these positives, fundamentals are still mixed (net losses and weaker TTM revenue) and valuation is expensive (high P/E with no dividend support).
Positive Factors
Strong free cash flow generation
Consistent positive operating and free cash flow gives Semtech durable internal funding to invest in R&D, expand capacity, and pursue targeted M&A without immediate reliance on equity markets. Over 2–6 months this supports capacity investments and working capital for product ramps.
Negative Factors
Ongoing net losses and recent revenue weakness
Despite operating profitability, lingering GAAP net losses and a meaningful trailing twelve‑month revenue decline indicate incomplete recovery. Persistent net losses can limit shareholder returns and require continued cash generation to fully normalize earnings over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent positive operating and free cash flow gives Semtech durable internal funding to invest in R&D, expand capacity, and pursue targeted M&A without immediate reliance on equity markets. Over 2–6 months this supports capacity investments and working capital for product ramps.
Read all positive factors
Semtech (SMTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.74B
Dividend YieldN/A
Average Volume (3M)4.04M
Price to Earnings (P/E)―
Beta (1Y)2.35
Revenue Growth14.22%
EPS Growth81.01%
CountryUS
Employees1,838
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.37
Shares Outstanding93,151,170
10 Day Avg. Volume4,383,716
30 Day Avg. Volume4,035,750
Financial Highlights & Ratios
PEG Ratio2.23
Price to Book (P/B)13.05
Price to Sales (P/S)6.83
P/FCF Ratio44.92
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue13.14
Enterprise Value/Gross Profit25.51
Enterprise Value/Ebitda256.56
Forecast
1Y Price Target
$205.27Price Target Upside90.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)2.23
Revenue Forecast (FY)$1.24B
Semtech Business Overview & Revenue Model
Company Description
Semtech Corporation is a technology firm specializing in the creation, production, and global distribution of advanced analog and mixed-signal semiconductor components, complemented by sophisticated algorithms. The company's extensive product port...
How the Company Makes Money
Semtech makes money primarily by selling hardware and related solutions to device makers, OEMs, and industrial customers, supplemented by software/services and licensing/royalty-type economics tied to its connectivity ecosystem.
1) Semiconductor ...
Semtech Earnings Call Summary
Earnings Call Date:May 26, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial story: record revenue, sizable year-over-year and sequential growth, strong adjusted EPS beat, improving margins and confident guidance for Q2 and FY27 driven by broad-based demand across data center (800G and 1.6T), robust LoRa momentum, strategic M&A (HIFU) and design wins. Notable near-term negatives include sequential declines in operating and free cash flow due to bonuses and acquisition outflows, a temporary margin compression in the signal integrity segment as a facility ramps, and supply/capacity constraints (notably GaN) that management is actively addressing. Overall, the highlights substantially outweigh the lowlights given strong backlog, guidance, and product traction.Positive Updates
Record Quarterly Revenue and Continued Growth
Reported record quarterly revenue of $291.0M in Q1 FY27, up 6% sequentially and up 16% year-over-year; marks the ninth consecutive quarter of net sales growth.
Negative Updates
Sequential Cash Flow Decline
Operating cash flow fell to $36.2M in Q1, down 41% sequentially (though up 30% YoY). Free cash flow was $28.0M, down 53% sequentially (up 7% YoY). Company cited FY26 annual bonus payments and acquisition cash outflows (net acquisition consideration of $29.2M) as drivers of sequential cash decline.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Quarterly Revenue and Continued Growth
Reported record quarterly revenue of $291.0M in Q1 FY27, up 6% sequentially and up 16% year-over-year; marks the ninth consecutive quarter of net sales growth.
Read all positive updates
Company Guidance
Semtech guided Q2 FY2027 net sales of $328M ± $5M (midpoint +13% sequentially, +27% YoY) with data center revenue targeted to grow ~35% sequentially (≈85% YoY) and LoRa revenue expected >15% sequential growth; it forecast adjusted gross margin of 54% ±50 bps (midpoint +100 bps seq, +80 bps YoY) and total semiconductor products gross margin of 62.1% ±50 bps (midpoint +140 bps seq and YoY), adjusted net operating expenses of ≈ $105.2M ± $2M driving an adjusted operating margin of 21.9% midpoint (+150 bps seq, +310 bps YoY), adjusted EBITDA of $79.2M ± $2.3M (24.2% margin midpoint, +140 bps seq, +32 bps YoY), adjusted interest/other ≈ $0.5M, an adjusted normalized tax rate of 17%, and adjusted diluted EPS of $0.61 ± $0.02 (midpoint +20% sequential, +49% YoY) on ~97.7M weighted average shares.Semtech Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.09B | 1.05B | 909.29M | 868.76M | 756.53M | 740.86M |
| Gross Profit | 561.28M | 541.60M | 455.64M | 373.99M | 478.96M | 461.14M |
| EBITDA | 55.82M | 60.20M | -44.91M | -851.06M | 131.07M | 182.53M |
| Net Income | -33.23M | -40.40M | -161.90M | -1.09B | 61.38M | 125.66M |
Balance Sheet | ||||||
| Total Assets | 1.44B | 1.41B | 1.42B | 1.37B | 2.57B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 163.30M | 195.20M | 164.46M | 143.13M | 235.51M | 279.60M |
| Total Debt | 492.00M | 522.41M | 551.50M | 1.40B | 1.34B | 175.65M |
| Total Liabilities | 865.62M | 860.50M | 876.84M | 1.68B | 1.81B | 393.14M |
| Stockholders Equity | 573.32M | 549.70M | 542.43M | -307.43M | 755.85M | 737.58M |
Cash Flow | ||||||
| Free Cash Flow | 162.10M | 159.73M | 43.78M | -125.02M | 98.39M | 176.94M |
| Operating Cash Flow | 177.87M | 169.51M | 57.99M | -93.92M | 126.71M | 203.12M |
| Investing Cash Flow | -76.18M | -38.76M | -11.89M | -22.70M | -1.25B | -40.32M |
| Financing Cash Flow | -95.85M | -89.42M | -21.66M | 10.55M | 1.08B | -152.10M |
Semtech Technical Analysis
Positive
107.71
Price Trends
131.24
Positive
107.57
Positive
88.84
Positive
Market Momentum
7.99
Positive
54.08
Neutral
38.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMTC, the sentiment is Positive. The current price of 107.71 is below the 20-day moving average (MA) of 159.46, below the 50-day MA of 131.24, and above the 200-day MA of 88.84, indicating a neutral trend. The MACD of 7.99 indicates Positive momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 38.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMTC.
Semtech Risk Analysis
Semtech disclosed 62 risk factors in its most recent earnings report. Semtech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Semtech Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $8.34B | 20.27 | 20.21% | ― | 5.34% | 29.84% | |
77 Outperform | $16.60B | 156.01 | 5.19% | ― | 0.54% | -51.32% | |
77 Outperform | $19.24B | -792.16 | -2.15% | ― | 65.19% | 73.74% | |
71 Outperform | $10.99B | -733.92 | -1.57% | ― | 22.77% | 79.17% | |
69 Neutral | $14.74B | -442.41 | -5.93% | ― | 14.22% | 81.01% | |
65 Neutral | $7.25B | -143.91 | -4.66% | ― | 25.14% | 70.00% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
SMTC
Semtech
158.23
116.35
277.82%
CRUS
Cirrus Logic
165.29
60.95
58.41%
ONTO
Onto Innovation
333.76
237.94
248.32%
SLAB
Silicon Laboratories
219.75
78.45
55.52%
SITM
SiTime Corporation
729.04
500.74
219.33%
ALGM
Allegro MicroSystems
59.00
28.04
90.57%
Semtech Corporate Events
Business Operations and StrategyFinancial Disclosures
Semtech Reports Record Q1 Fiscal 2027 Revenue Growth
Positive
May 26, 2026
On May 26, 2026, Semtech reported unaudited results for the first quarter of fiscal 2027, which ended April 26, 2026, posting record net sales of $291.0 million, up 6% sequentially and 16% year over year, with GAAP gross margin at 52.0% and operat...
Business Operations and StrategyFinancial Disclosures
Semtech Posts Record Quarterly Sales Amid Improved Margins
Positive
Mar 16, 2026
On March 16, 2026, Semtech reported record fourth-quarter net sales of $274.4 million, up 3% sequentially and 9% year-on-year, with GAAP gross margin at 50.4% and non-GAAP gross margin at 51.6%. The quarter produced a GAAP operating loss with a ma...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.