Semtech Upgrade to Outperform
Semtech Corporation (NASDAQ: SMTC) shares increased 5.4% in pre‑market trading on Thursday following Northland’s upgrade of the stock from “Market Perform” to “Outperform” and a new price target of $182. Northland analyst Gus Richard said the company’s connectivity solutions are gaining traction in artificial‑intelligence infrastructure, describing connectivity as the current AI bottleneck in power and performance. He noted that data‑center revenue now represents 30% of total revenue and is projected to rise to 44% by the end of calendar year 2027. Richard added that growth in data‑center and LoRa revenue, together with the divestiture of the cellular‑module business, is expected to lift gross margin into the mid‑60% range.
Separately, Baird analyst Tristan Gerra raised his price target on Semtech to $300, up from $225, while maintaining an “Outperform” rating.
The upgrade follows what Richard described as a strong quarterly earnings report and stronger guidance from the semiconductor company.