Stifel Turns More Bullish on Semtech (SMTC), Lifts Price Target to $54

Semtech Corp. (NASDAQ:SMTC) is one of the most oversold semiconductor stocks so far in 2025. Stifel analyst Tore Svanberg raised his price target on Semtech to $54 from $45 on July 18 while maintaining a Buy rating. The update reflects a more constructive view on the semiconductor sector as inventory corrections that have weighed on the industry for the past two years appear to be nearing an end.

Svanberg believes the sector may now be in the early stages of a cyclical recovery, although he cautions that the pace of the rebound is still uncertain. His latest earnings preview implies that the macro environment is gradually improving, with signs that demand is starting to stabilize across several key end-markets.

AI remains a central part of Stifel’s investment thesis. Stifel analysts continue to recommend an Overweight position in semiconductors tied to the AI ecosystem. According to the report, the AI-focused group of companies under the firm’s coverage is projected to deliver median revenue growth of 32% in 2025 and 17% in 2026.

For Semtech specifically, the higher price target reflects not just an improving macro setup, but also company-specific drivers. While the near-term visibility remains somewhat limited, Semtech benefits from structural demand tied to AI, IoT, and data centre infrastructure.

Semtech Corp. (NASDAQ:SMTC) is a global supplier of high-performance analog and mixed-signal semiconductors, as well as advanced algorithms for infrastructure, high-end consumer, and industrial equipment.

While we acknowledge the potential of SMTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.