From Nasdaq: 2025-04-02 10:08:00

Semtech (SMTC) shares have dropped 47.3% in the last three months, performing worse than industry peers and market indices. The decline is attributed to challenges in its CopperEdge business, with sales falling below expectations due to architectural changes by a major customer.

Despite short-term setbacks, Semtech remains financially strong. The company recently launched 1.6T Octal Small Form-factor Pluggable (OSFP) Active Copper Cable to address thermal challenges and improve data transmission efficiency for AI workloads.

The new OSFP Active Copper Cable could help Semtech recover from its CopperEdge woes. Additionally, strong demand for its LoRa technology and partnerships with industry players like Amazon and Amdocs position Semtech for revenue and EPS growth in 2026 and 2027.

Semtech’s collaboration with the LoRa Alliance and key partners like Amazon Web Services and Amdocs strengthens its market presence. By introducing innovative solutions and addressing customer needs, Semtech is poised to bounce back from recent challenges in its CopperEdge business.

Despite the recent decline in stock value, Semtech’s strategic partnerships, innovative products, and growth prospects make it a hold for investors. With the potential for recovery and revenue growth, Semtech’s stock could offer long-term value for investors looking for opportunities in the tech sector.



Read more at Nasdaq: Should You Hold on to SMTC Stock Despite its 47% Decline in 3 Months?