Semtech stock maps AI data-center growth through fiscal 2030

Published on 10/30/2026 at 19:45 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Semtech stock is shifting toward data-center connectivity and LoRa. The company expects its cellular modules divestiture to close in fiscal fourth quarter.

Semtech sharpens its growth strategy

The company is emphasizing AI data-center connectivity and LoRa products in its portfolio shift.
Management expects the cellular modules divestiture to close in fiscal fourth quarter, subject to regulatory clearances.
The balance sheet has improved as net debt and leverage declined from fiscal 2024 levels.

SMTC, US8168501018, Illustration mit AI erstellt.

Semtech raised its fiscal third-quarter 2027 outlook and presented a long-term growth framework at its analyst day on October 15, according to a MarketBeat report published through Yahoo Finance. The semiconductor company is placing greater emphasis on AI data-center connectivity and LoRa products while working to improve its portfolio mix.

Higher near-term expectations

Semtech expects fiscal third-quarter 2027 revenue of 417.5 million US dollars at the midpoint, representing 56 percent year-on-year growth. The outlook also calls for an adjusted gross margin of 59 percent, adjusted operating margin of 33 percent and adjusted diluted earnings per share of 1.14 US dollars.

The company expects regulatory clearances for the planned divestiture of its cellular modules business and continues to target completion in fiscal fourth quarter. Excluding that business, management expects data-center products to account for 40 percent of fiscal third-quarter revenue and LoRa products for 19 percent.

Ambitious fiscal 2030 targets

Semtech's framework calls for fiscal 2030 revenue of 3.2 billion US dollars, with data-center revenue reaching 2.1 billion US dollars. The company is targeting a 70 percent adjusted gross margin, an adjusted operating margin of 48 to 50 percent and adjusted diluted earnings per share of 12.40 to 13 US dollars.

Management also expects free cash flow to equal 35 percent of revenue. The framework assumes a 20 percent non-GAAP tax rate and 104 million weighted-average diluted shares outstanding.

Balance sheet supports investment

Semtech reported net debt of 299 million US dollars at the end of fiscal second quarter 2027, down from 1.3 billion US dollars in fiscal 2024. Net leverage fell to 1.1 times from 10.5 times, while the company said annual free cash flow had reached 193 million US dollars by the end of the quarter.

The real-time quote of Semtech stock was 110.88 euros on Lang & Schwarz at 7:39 p.m. CET on Friday, October 30, 2026.

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Further developments are collected in more news and analyses on Semtech stock.