Semiconductor stock Semtech (NASDAQ: SMTC) experienced a rollercoaster ride in 2025, hitting a three-year high in January but plummeting 31% in February due to reduced expectations for its NVIDIA-related business.

Despite the setback, Semtech’s financial results have consistently shown improvement, with revenues hitting all-time highs and a strong gross margin of 53%. The company aims to further increase its gross margin to 58-63% long term.

Analysts are bullish on Semtech, with price targets of $80-$81 implying 17-19% upside. The company’s data center business, expected margin expansion, and potential CopperEdge deals with hyperscale firms could drive further growth.

Read more at Nasdaq: Why Semtech Stock Is Rallying After Its NVIDIA Setback