Update shared on27 Aug 2025
Fair value Increased 9.84%Semtech’s consensus price target has increased to $63.25, driven by strong positioning in the AI data center market, an earnings and guidance beat, upward revisions to revenue and EPS forecasts, and solid execution, reflecting higher analyst conviction in its growth outlook.
Analyst Commentary
- Bullish analysts cite strong positioning in the AI data center market, particularly with fiber, ACC (Active Copper Cable), and impending product ramps such as LPO/TIA and Nvidia's Rubin launch.
- Multiple price target increases are supported by Semtech's recent non-GAAP earnings beat and raised forward guidance, outpacing consensus expectations.
- Positive outlook is reinforced by upward revisions to revenue and EPS estimates following the above-consensus Q2 results and aligned future guidance.
- Continued momentum in the FiberEdge business, especially around ACC demand, is highlighted as a key driver of current and future performance.
- Analysts are encouraged by management’s solid operational execution, viewing it as setting a platform for material and fundamental growth into 2026.
What's in the News
- Semtech issued earnings guidance for Q3 FY26, expecting net sales of $266 million, +/- $5 million.
- Reported a goodwill impairment of $42 million for Q2 ended July 27, 2025.
- Amended and restated the company's Bylaws as approved by the Board.
- Completed repurchase of 19,043,495 shares (29.17%) for $675.19 million under the buyback program announced in March 2008; no shares were repurchased between January 27 and April 27, 2025.
Valuation Changes
Summary of Valuation Changes for Semtech
- The Consensus Analyst Price Target has risen from $57.58 to $63.25.
- The Future P/E for Semtech has significantly risen from 28.85x to 34.36x.
- The Net Profit Margin for Semtech has fallen from 22.80% to 21.04%.
Disclaimer
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