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6. Semtech Corporation (NASDAQ:SMTC)

Number of Hedge Fund Holders: 32

Semtech Corporation (NASDAQ:SMTC) designs and markets analog and mixed-signal semiconductors, IoT solutions, and advanced algorithms for industrial, medical, and communications applications globally.

On January 17, UBS initiated a Buy rating on Semtech (NASDAQ:SMTC) with an $85 price target. The coverage is followed by Semtech’s CopperEdge product being integrated into Nvidia’s Blackwell platform, which positions the company for AI data center networking growth. The CopperEdge opportunity alone is valued at $100 million, with further potential from AMD, hyperscalers, and LPO units.

Apart from data centers, Semtech’s analog businesses are expected to benefit from smartphone growth and a recovery in industrial markets. UBS believes the company’s Signal Integrity segment growth estimates for FY25-26 are too low, and recent refinancing and potential portfolio changes could lead to a higher valuation.