Why Semtech (SMTC) Stock Is Trading Up Today

What Happened?

Shares of semiconductor company Semtech (NASDAQ:SMTC) jumped 19.4% in the afternoon session after the company reported impressive fourth quarter results which blew past analysts' EPS and EBITDA expectations while sales were in line. In addition, its inventory levels shrunk. On the other hand, its revenue guidance for next quarter missed significantly. Overall, this quarter was mixed but still had some key positives.

The shares closed the day at $39.63, up 21.5% from previous close.

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What The Market Is Telling Us

Semtech’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. But moves this big are rare even for Semtech and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 4 months ago when the stock gained 23.5% on the news that the company reported impressive third-quarter results that blew past analysts' revenue and EBITDA expectations. Its full-year guidance for the same metrics outperformed Wall Street's estimates. While the top line strength was broad-based, management called out the data center, which benefited from AI-driven product demand. Zooming out, we think this quarter featured some important positives.

Semtech is down 36.5% since the beginning of the year, and at $39.41 per share, it is trading 48.9% below its 52-week high of $77.15 from January 2025. Investors who bought $1,000 worth of Semtech’s shares 5 years ago would now be looking at an investment worth $1,460.

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