Hidden Gem in the Fabless Semiconductor Industry: Baird Analyst Rates Semtech as a ‘Bullish Fresh Pick’

By Eleanor Harrison Mar27,2024
Semtech Stock Rises Following Designation as ‘Hidden Gem’ Chipmaker

Semtech (SMTC) shares experienced a significant surge on Tuesday following an investment bank’s recommendation that labeled the semiconductor stock as a “hidden gem.” The firm’s analyst, Tristan Gerra of Baird, described Semtech stock as a “bullish fresh pick” in a note to clients and gave it an outperform rating with a price target of 40. Despite this positive outlook, Semtech stock closed at 25.17, far below its all-time high of 94.92 from November 2021.

Gerra’s optimism about Semtech’s prospects grew after attending the Optical Fiber Communication 2024 conference in San Diego. Semtech specializes in producing high-performance networking and connectivity semiconductor products and systems. Gerra highlighted the company’s positioning in the upcoming ramp of new AI platforms and its qualifications for high-density copper interconnect, making it well positioned for growth in AI architectures.

Investors are now looking forward to the company’s fiscal fourth-quarter report which is due later in the week. According to Gerra, next-generation optical links, such as linear drive pluggable optics, also present a significant opportunity for Semtech’s growth. He described Semtech as a “classic turnaround story” with new leadership focused on leveraging its strengths in optical networking.

Semtech ranks 17 out of 39 stocks in IBD’s fabless semiconductor industry group, with an IBD Composite Rating of 40 out of 99. For more updates on consumer technology, software, and semiconductor stocks, you can follow Patrick Seitz on X and Twitter at @IBD\_PSeitz. Investors are also encouraged to stay informed about emerging trends in the market to make strategic investment decisions.

Semtech is poised for growth due to its positioning in the upcoming ramp of new AI platforms and its qualifications for high-density copper interconnect. Its next-generation optical links also present a significant opportunity for growth.

Gerra sees Semtech as a classic turnaround story with new leadership focused on leveraging its strengths in optical networking.

Investors are looking forward to the company’s fiscal fourth-quarter report which is due later this week.

Semtech ranks 17 out of 39 stocks in IBD’s fabless semiconductor industry group and has an IBD Composite Rating of 40 out of 99.

Stay informed about emerging trends in the market by following Patrick Seitz on X and Twitter at @IBD\_PSeitz.

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

Related Post

Leave a Reply