SMTC
Semtech Corporation

Semtech CorporationSMTC

Technology · Semiconductors
103.21USD
+12.75%
Nov 08, 2026
SMTC overview ready
Supplier of signal integrity and connectivity semiconductors for AI data centers
Component supplier and enabling semiconductor vendor for AI-data-center interconnects; Semtech is not a pure play because it also has analog/mixed-signal, wireless, and IoT businesses.
Primary theme is lagging
Connectivity Semiconductors is lagging (-38.0pp vs SPY over 21 sessions; 0 of 5 members ahead of SPY).
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of what comparable businesses command.
Fundamentals under pressure
Ev / sales is weak.
Primary risk
Cyclical semiconductor demand fluctuations.
Market Nov 6Filing Jul 26Price action Nov 7Research Oct 4

Conviction Level

PriceAction3.4BusinessPerformance5.0BusinessQuality4.7Valuation2.2ThemeMomentum1.0Mixed — Revenue growth has accelerated across 3 consecutive quarters, rising from +9.3% to +33% year over year. Reported earnings improved faster than operating income, so most of the improvement did not come from operations. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−38.0pp
Theme return
−43.0%
Beating SPY
0 of 5
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$9.6B
Avg Volume (60D)
3.6M
60 sessions
Revenue Growth YoY
+15.5%
FY2026 vs FY2025
Gross Margin
+52.1%
Trailing twelve months
Operating Margin
+8.0%
Trailing twelve months
Free Cash Flow Yield
+2.0%
Distance from 200DMA
-18.0%
Next Earnings
2026-11-23
P/E
62.5x
EV / Sales
8.4x
Market metrics as of Nov 6, 2026
Financial results for the period ended Jul 26, 2026
Filed balance-sheet data as of Jul 26, 2026

Business Performance

Mixed

Revenue growth has accelerated across 3 consecutive quarters, rising from +9.3% to +33% year over year. Reported earnings improved faster than operating income, so most of the improvement did not come from operations.

Latest reported: Q2 FY2027, ended Jul 26
Revenue growthAccelerating
+33%
$342M in Q2 FY2027 · YoY
YoY growth, last 4 quarters
  1. +13%
  2. +9.3%
  3. +16%
  4. +33%
Earnings growthTurned profitable
$1.59
Diluted EPS $1.59 vs -$0.31 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginSwinging
16.3%
+22.6 pp YoY · gross margin 53.8% (+1.7 pp)
Earnings improved more than operations did
The share count is rising

Business Quality

4.7 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Only one valuation perspective could be built for this company, and it reads expensive.
Semtech Corporation has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command. It trades at a 2.0% free-cash-flow yield and 8.4x revenue, which require sustained delivery to be justified.

What changed

  • SMTC rose 12.8% in one session
    SMTC closed +12.8% while the broad market was close to flat (+0.3%).
    2026-11-06

Company Research

Thesis
Component supplier and enabling semiconductor vendor for AI-data-center interconnects; Semtech is not a pure play because it also has analog/mixed-signal, wireless, and IoT businesses. The exposure is adjacent rather than pure-play: the company sells into the same demand, alongside a broader business.
Opportunity
Moderate opportunity
Accelerator-cluster spending on high-bandwidth, lower-power optical and copper links, signal-integrity semiconductors, and fabric connectivity required to scale AI training and inference systems.
Key risk
Cyclical semiconductor demand fluctuations.

Economic classification

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Business & Markets

Technology · Semiconductors
What they do

Semtech Corporation designs and supplies semiconductor products and IoT systems, operating through three segments: Signal Integrity, Analog Mixed Signal and Wireless, and IoT Systems and Connectivity across Asia-Pacific, North America, and Europe.

How it earns

The company generates revenue primarily through transactional sales of semiconductor components and connectivity solutions.

Products & services
Signal integrity products for optical and copper data communications
Integrated circuits for data centers and enterprise networks
IoT systems and cloud connectivity services
Customers & end markets
Data center and enterprise network operators
Industrial and infrastructure applications
IoT device manufacturers
Market position

Niche semiconductor supplier with diversified analog, mixed-signal, wireless, and IoT product lines supporting AI networking needs.

Demand drivers
Medium cyclicality

Semiconductor demand is influenced by technology investment cycles and end-market capital expenditures.

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