We recently published a list of AI Stocks Dominate Friday’s Top 10 Performers. In this article, we are going to take a look at where Semtech Corp. (NASDAQ:SMTC) stands against other AI stocks that dominate Friday’s top performers.
The stock market bounced back on Friday, erasing the week’s losses following news that a feared government shutdown is unlikely to happen amid news that a funding plan is likely to be passed.
The tech-heavy Nasdaq recorded the highest gain, adding 2.61 percent, followed by the S&P 500 with a 2.13-percent gain, and the Dow Jones with 1.65 percent.
Ten companies, predominantly under the AI industry, mirrored the broader market optimism, registering strong double-digit gains during the session. In this article, we have named the day’s best performers and detailed the reasons behind their performance.
To come up with the list, we only considered those with $2 billion in market capitalization and $5 million in trading volume.
A technician looking at a circuit board of analog semiconductor products.
Semtech Corp. (NASDAQ:SMTC)
Semtech saw its share prices rally as high as 21.6 percent at intra-day trading before a slight pullback occurred to end the day just up by 21.06 percent at $39.6 apiece, as investors reacted positively to its impressive earnings performance in the fourth quarter of fiscal year 2025.
In its latest earnings release, SMTC said it swung to a net income attributable to shareholders of $39.1 million from a $642.4-million net loss in the same period a year earlier, as net sales grew by 30 percent to $251 million from $192.9 million year-on-year.
Meanwhile, SMTC narrowed its net loss by 85 percent to $161.9 million last year from $1.09 billion in full-year 2024, as net sales grew 4.6 percent to $909.3 million from $868.8 million.
“Fiscal year 2025 represented a year of positive inflection on many fronts, with sequential improvement for each quarter reported in net sales, gross margin, operating margin, and earnings per share,” said Hong Hou, Semtech’s president and chief executive officer. “In the new fiscal year, we are intently focusing on three core priorities to position Semtech for future success: portfolio optimization and simplification, strategic investment in research and development, and driving margin expansion, all which we believe will deliver greater value to our shareholders.”
Overall, SMTC ranks 4th on our list of AI stocks that dominate Friday’s top performers. While we acknowledge the potential of SMTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as SMTC but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.