20 Best Data Center Stocks to Buy According to Billionaires

18. Semtech Corp. (NASDAQ:SMTC)

Number of Billionaire Investors: 11

Billionaire Holdings: $248 million

Number of Hedge Fund Holders: 57

Semtech Corporation (NASDAQ:SMTC) is a semiconductor company specializing in high-performance analog and mixed-signal chips for data centers, IoT, and communications infrastructure. Its diverse product lineup includes optical networking chips, signal integrity solutions, and power management ICs, all designed to improve data center efficiency and high-speed connectivity.

On February 10, Semtech Corporation (NASDAQ:SMTC) saw a significant stock correction after it lowered its guidance for CopperEdge products. The company had initially projected at least $50 million in net sales from its CopperEdge solutions, which are used in active copper cables, but revised this forecast downward due to changes in rack architecture by a major customer. Investors are now looking ahead to the March 13 earnings report, where management’s insights on this adjustment and future guidance will be closely watched.

Despite this setback, on March 10, Stifel analyst Tore Svanberg reaffirmed a Buy rating on Semtech Corporation (NASDAQ:SMTC) but lowered his price target from $70 to $60. He expects the January quarter results to be in line with expectations, while April quarter revenue guidance may slightly lag behind his firm’s estimates but should remain aligned with market consensus. Although the price target was adjusted, Svanberg believes the recent selloff may have been an overreaction and continues to hold a positive long-term outlook on the stock, reaffirming confidence in Semtech’s investment thesis.