Semtech Corporation (SMTC) AI Stock Analysis

Semtech Corporation is a semiconductor company that designs, develops, manufactures, and markets analog and mixed-signal semiconductor products alongside advanced algorithms. Established in 1960 and headquartered in Camarillo, California, the company offers signal integrity solutions for optical data communications and video transport infrastructure. Its portfolio also includes integrated circuits for data centers, enterprise networks, and wireless base stations. In addition, Semtech provides protection devices to safeguard electronics against voltage spikes, specialized wireless and sensing products for industrial, medical, and communications uses, and power management products such as switching voltage regulators and wireless charging technologies for original equipment manufacturers.

Semtech's annual revenue rose from $740.9M in FY2022 to $756.5M in FY2023, $868.8M in FY2024, $909.3M in FY2025, and $1.05B in FY2026, reflecting a 5-year revenue CAGR of 12.0%. Gross margin was 51.6% in FY2026, an improvement from 50.1% in FY2025 but lower than 62.2% in FY2022. Operating margin recovered to 12.7% in FY2026 following -3.9% in FY2024. Net income remained in negative territory at -$40.4M in FY2026, compared to -$161.9M in FY2025 and -$1.09B in FY2024. In the latest quarter ending July 31, 2026, quarterly revenue increased 32.7% year-over-year and quarterly earnings grew 22.7% year-over-year.

As of July 31, 2026, Semtech reported $204.1M in cash and short-term investments and $525.0M in total debt, resulting in net debt of $320.9M. The company maintained a current ratio of 1.70 and a debt-to-equity ratio of 0.70 alongside shareholders' equity of $748.9M. Operating cash flow improved to $181.2M in FY2026, generating free cash flow of $159.7M. Capital expenditures totaled $9.8M, while share buybacks reached $217.8M in FY2026. Semtech's share count increased 54.4% over the past five years.

Trading at $136.73, Semtech holds a market capitalization of $12.76B and an enterprise value of $16.56B. Its trailing P/E ratio is 90.5x and its forward P/E is 53.2x, both above the median of its US-listed Technology peers of 28.1x and 18.8x, respectively. The stock trades at a price-to-sales multiple of 10.9x and an EV-to-EBITDA of 158.8x, compared to peer medians of 2.8x and 16.6x. Over the past year, Semtech gained 93.3%, outperforming the S&P 500 return of 16.8%, though its 5-year return of 77.4% trailed the S&P 500 return of 83.0%.

Wall Street analysts hold 13 Strong Buy, 1 Buy, and 2 Hold ratings on Semtech, with no Sell ratings. The mean price target of $217.07 represents a 58.8% premium over the last close of $136.73. For the fiscal year ending January 31, 2027, consensus estimates forecast revenue of $1.50B and EPS of $3.65, representing 113.5% EPS growth. In the following fiscal year, 15 analysts expect revenue of $2.04B and EPS of $6.67. Semtech beat EPS estimates in each of the last 4 quarters, with its next earnings date set for November 23, 2026.

This page is an AI-written research summary of Semtech Corporation (SMTC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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