Analyst Confidence Grows as Semtech (SMTC) Expands IoT Footprint

Semtech Corporation (NASDAQ:SMTC) is one of the 11 Best Tech Stocks to Buy On the Dip. On May 28, Analyst Christopher Rolland of Susquehanna reiterated a Buy rating on Semtech Corporation (NASDAQ:SMTC) with a price target of $60. The rating comes after the company released its fiscal first-quarter results for 2026.

The company reported net sales of $251.1 million, reflecting a 22% year-over-year increase. The analyst noted that the company has demonstrated resilience with its core products FiberEdge and TriEdge by filling the gap caused by a temporary slowdown in its CopperEdge product line. This product diversification supports ongoing growth, with new applications expected to ramp up in the latter half of the year. Moreover, Semtech Corporation (NASDAQ:SMTC)’s LoRa technology, which is central to its IoT strategy, has exceeded expectations. The company is actively pursuing new opportunities in the expanding IoT sector, noted Christopher Rolland. Despite short-term challenges such as the NVIDIA ACC disappointment, the company remains focused on reducing debt and investing in research and development.

Semtech Corporation (NASDAQ:SMTC) is a high-performance semiconductor company that provides advanced technology solutions. It operates through three main areas including Signal Integrity, Analog Mixed Signal and Wireless, and IoT Systems and Connectivity.

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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