Jim Cramer’s Lightning Round: 8 Stocks to Watch

5. Semtech Corporation (NASDAQ:SMTC)

Talking about Semtech Corporation (NASDAQ:SMTC), Cramer said:

“I do think that Semtech is just a traditional kind of semiconductor company. I do prefer Texas Instruments to that one.”

Semtech (NASDAQ:SMTC) designs, manufactures, and markets analog and mixed-signal semiconductors and advanced algorithms, offering a wide range of products for applications in data communications, protection, sensing, voltage regulation, and IoT solutions. As per the company’s third-quarter guidance, it expects net sales to be approximately $233 million. Net sales from the infrastructure market are expected to grow sequentially, with data center applications leading this increase.

This sector is anticipated to be a key driver for the company’s near-term growth. Similarly, the high-end consumer market is forecasted to see an increase in sales, influenced by typical seasonal trends. Industrial net sales are also expected to rise slightly, aided by recovering booking activity that began in the first quarter and continued into the second quarter.

Semtech (NASDAQ:SMTC) also provided expectations for its gross margin, projecting it to reach 52%. If this forecast holds true, it would represent a 160 basis point improvement sequentially. Management further estimated net EPS to be $0.23. In terms of adjusted EBITDA, the company anticipates $48.7 million, which would result in an EBITDA margin of 20.9%.