Why These 15 Semiconductor Stocks Have Been Plunging So Far in 2025

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6. Semtech Corp (NASDAQ:SMTC)

Number of Hedge Fund Holders In Q4 2024: 57

Semtech Corp (NASDAQ:SMTC) sells IoT systems and high-performance semiconductors. It is also a cloud connectivity service provider.

The stock is down significantly so far in 2025 due to Semtech announcing that FY2026 sales for its CopperEdge products would fall below the previously projected $50 million floor.

This was attributed to changes in server rack architecture by a major customer (believed to be Nvidia), which reduced demand for CopperEdge products due to heating issues.

Following the CopperEdge guidance cut, multiple law firms launched securities fraud investigations into Semtech. These investigations allege that the company misrepresented the viability and market potential of its CopperEdge products. In turn, analysts ended up downgrading the stock.

The consensus price target of $67.91 implies 90.86% upside.

SMTC stock is down 40.91% year-to-date.

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