How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Semtech (SMTC) ten years ago? It may not have been easy to hold on to SMTC for all that time, but if you did, how much would your investment be worth today?
Semtech's Business In-Depth
With that in mind, let's take a look at Semtech's main business drivers.
Headquartered in Flynn Road Camarillo, CA, Semtech Corporation designs, manufactures and markets a wide range of analog and mixed- signal semiconductors for commercial applications.
The product line comprises Signal Integrity Products, Protection Products, Power and High-Reliability Products, Wireless and Sensing Products, and Systems Innovation Group.
The company's devices are used in a variety of applications including computer, communications, industrial, military-aerospace and automotive. The company also provides a limited amount of wafer foundry services to other electronic component manufacturers.
Semtech has manufacturing facilities in Irvine, Camarillo and San Diego in California, Reynosa in Mexico and Neuchâtel in Switzerland.
In fiscal 2025, the company generated total revenues of $909.3 million, marking a year-over-year increase of 4.7%. Semtech operates across three end markets, Infrastructure, High-End Consumer and Industrial.
In Infrastructure market, the company caters to the demand for products needed in data centers, passive optical networks, base stations, optical networks, servers, carrier networks, switches and routers, cable modems, wireless LAN and other communication infrastructure equipment. The end market accounted for 27% of fiscal 2025 total revenues.
The company serves the requirements needed in tablets, wearables, digital video recorders, handheld products, wireless charging, set-top boxes, smartphones, digital televisions, monitors and displays in high-end Consumer market. The end market accounted for 16% of fiscal 2025 total revenues.
Further, equipment requirements in smart grid, wireless charging, military and aerospace, medical, security systems, automotive, industrial and home automation analog and digital video broadcast equipment, video-over-IP solutions, automated meter reading and Internet of Things are taken care by Semtech in its Industrial end-market. The end market accounted for 57% of fiscal 2025 total revenues.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Semtech, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in November 2015 would be worth $3,982.30, or a gain of 298.23%, as of November 12, 2025, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 229.96% and gold's return of 265.79% over the same time frame.
Analysts are anticipating more upside for SMTC.
Semtech is benefiting from strong momentum across the industrial and datacenter markets served. Increasing demand for low-latency, high-efficiency connectivity solutions in AI-driven data centers is driving the adoption of the company's Tri-Edge and CopperEdge product lines. The growing adoption of LoRa devices and the LoRaWAN standard is continuously aiding its quarterly performance. Growing shipments in Asia and North America remain a positive factor. Semtech's expanding Pro AV offerings remain tailwinds. Apart from this, the company is continuously growing its customer base on the back of BlueRiver technology, which remains another upside. However, macroeconomic uncertainties and geopolitical tensions are major concerns. Rising competitive pressure and foreign exchange risk are other headwinds.
The stock is up 6.46% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2025. The consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Semtech Corporation (SMTC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
