10 Unstoppable Tech Stocks to Buy Right Now

6. Semtech Corp. (NASDAQ:SMTC)

Upside Potential: 15%

Number of hedge funds: 32

Semtech Corp. (NASDAQ:SMTC) is a provider of semiconductors, Internet of Things (IoT) systems, and cloud connectivity, primarily supplying high-performance analog and mixed-signal semiconductors. The company designs, develops, manufactures, and markets a broad range of products and services for commercial applications across various markets, including infrastructure (data centers, optical networks, base stations, switches), high-end consumer electronics (smartphones, tablets, desktops, set-top boxes), and industrial sectors (IoT, smart grids, automotive).

Key strengths of Semtech Corp. (NASDAQ:SMTC) include its exposure to diverse end markets and geographies. Additionally, the company stands to benefit from the rising demand for IoT solutions, advancements in 5G technology, and the increasing need for sustainable and energy-efficient solutions. Semtech’s focus on innovation and its ability to develop new products that address complex design challenges position it well to capitalize on these trends.

On January 17th, UBS initiated coverage on Semtech Corp. (NASDAQ:SMTC) with a Buy rating and a price target of $85, indicating a 42% upside. The positive outlook is based on the company’s CopperEdge product securing a critical win in NVIDIA Corp. (NASDAQ:NVDA)’s Blackwell platform and the subsequent expansion opportunity in AI data centers as the partnership with NVIDIA Corp. (NASDAQ:NVDA) strengthens. Over the past year, Semtech Corp. (NASDAQ:SMTC)’s shares have surged 183%, significantly outperforming the benchmark’s 24%.