Semtech Corp. (SMTC) PT Raised to $110 at Oppenheimer: 'Emergent AI story on track'

Oppenheimer analyst Rick Schafer raised the price target on Semtech Corp. (NASDAQ: SMTC) to $110.00 (from $100.00) while maintaining a Outperform rating.

The analyst commented, "SMTC reported upside F4Q (Jan.) results and F1Q (April) outlook Monday. Growth led by DC, up 58% last year, expected up >50% in this year. ACC ramp begins in the current Q with large CSP. Additional CSP ramps expected to follow. FiberEdge for 1.6T transceivers to ramp in 2H26. Strategic/accretive tuck-in HeiFo acquisition broadens DC portfolio with InP CW lasers and gain chips for tunable applications. Dualband LoRa set for 20% growth for the foreseeable. Active process underway to divest $200M/20% GM non-core module business. We see divestiture boosting corporate GM from low 50%s to >60%. Mgmt. increasingly encouraged by level of engagement, expects successful conclusion in the near term. Emergent AI story on track. Reiterate Outperform with new $110 target (prior $100)."

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