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Semtech
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$10.9B
Market Cap
34.5
P/E
1.04
PEG
0.2%
ROCE
-7.4%
ROE
0.89
D/E
3.1%
OPM
-27.0%
% from 52W High
87
α RS
🔍 SMTC is showing a momentum setup because RS Rating is 87 and an ECS of 57.6 last quarter. Net: Partial signal stack, not a recommendation. ? RS Rating ECS
Sources
RS Rating 87 · ECS 57.6
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About

Semtech Corporation provides semiconductor, Internet of Things systems, and cloud connectivity service solutions in the Asia- Pacific, North America, and Europe.

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📊 MIXED Semtech Q1 record revenue $291M, data center up 39% YoY to $71.6M
Revenue & Profitability
Q1 2027 net sales were a record $291 million, up 6% sequentially and 16% year-over-year. Adjusted diluted earnings per share were $0.51, up 34% year-over-year. Adjusted operating income was $59.3 million (20.4% margin), and adjusted EBITDA was $66.4 million (22.8% margin). For Q2 2027, the company guided net sales of $328 million (±$5 million), up 13% sequentially and 27% year-over-year, with adjusted diluted EPS of $0.61 (±$0.02).
Outlook
Management sees accelerating demand in data center driven by 800G and 1.6T transitions, with LPO/LRO adoption gaining traction and copper ACC solutions expanding. LoRa is entering a new growth chapter supported by LoRa Plus, Amazon Sidewalk, and edge AI applications. The company expects sustained growth across all three end markets in fiscal 2027, with data center alone targeting 35% sequential growth in Q2, implying 85% year-over-year growth. No macro headwinds were flagged; instead, positive demand dynamics were highlighted.
Growth Drivers
Data center is the primary growth driver, with Q1 revenue of $71.6 million (up 39% YoY) and Q2 guidance of 35% sequential growth. Key products include 800G FiberEdge, 1.6T FiberEdge, CopperEdge ACC, and HieFo lasers. LoRa is also accelerating, with Q1 revenue of $44.9 million (up 14% YoY) and Q2 guidance of over 15% sequential growth, driven by LoRa Plus, Amazon Sidewalk, and edge AI. High-end consumer TVS is gaining share and content at premium handset OEMs, and the industrial TVS business is expanding into higher-value SurgeSwitch applications.
Balance Sheet & CapEx
Not discussed as a specific CapEx number, but the company is investing heavily in capacity expansion. For GaN chips, capacity is being increased by adding shifts, clean room space, and process equipment, with plans to triple or quadruple capacity by end of calendar 2026, and another 3-4x by end of 2027. R&D investment is also increasing, primarily in data center and LoRa programs, with R&D spend at 17.6% of sales in Q1. The HieFo acquisition completed in March 2026 is also being integrated and ramped.
Margins
Q1 adjusted gross margin was 53% (20 bps above midpoint), with total semiconductor products gross margin at 60.7%. Signal Integrity product gross margin was 62.7% (impacted by HieFo ramp), and IoT systems gross margin was 35.8%. For Q2, guided adjusted gross margin of 54% (±50 bps) and total semiconductor products gross margin of 62.1% (±50 bps). Adjusted operating margin is expected to improve to 21.9% in Q2 (up 150 bps sequentially), and EBITDA margin to 24.2%. The company is gaining operating leverage as SG&A declines as a percentage of sales.
Key Risks
The company's forward-looking statements reference risk factors in its Form 10-K, but no specific risks were detailed on the call. On the Q&A, management acknowledged supply constraints but expressed confidence in its capacity plans. Potential risks implied include the ability to meet surging demand (GaN chips currently exceeding supply), dependency on hyperscaler and module partner ramps, and the execution of the HieFo integration and cellular module divestiture.
Generated by AI · Q1 2027 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2027 Q1 2027 2026-05-26
Record Q1 revenue and EPS growth driven by strong data center and LoRa performance, with robust outlook for Q2 and accelerating demand across all segments. Capacity expansion and R&D investment are supporting continued growth, while portfolio optimization and the HieFo acquisition enhance strategic positioning.
Q4 2026 Q4 2026 2026-03-16
Record annual sales and EPS growth driven by data center and LoRa portfolios, with strong Q4 results and robust outlook for FY27. Strategic HieFo acquisition enhances optical capabilities, while new product ramps and global IoT expansion support multi-year growth.
Q3 2026 Q3 2026 2025-11-24
Record Q3 revenue and earnings growth were driven by strong data center and LoRa performance, with significant margin expansion and improved cash flow. Strategic actions included a major debt refinancing, Force Sensing acquisition, and progress on non-core asset divestitures.
Q2 2026 Q2 2026 2025-08-25
Record Q2 net sales and strong year-over-year growth were driven by data center, LoRa, and IoT segments. Improved margins, reduced leverage, and robust design win momentum support a positive outlook, with Q3 guidance reflecting continued strength in core markets.
Q1 2026 Q1 2026 2025-05-27
Q1 net sales and margins exceeded guidance, driven by strong data center, LoRa, and industrial growth. Outlook for Q2 is positive, with continued momentum in AI connectivity, IoT, and 5G, while debt reduction and margin expansion remain priorities.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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