Semtech Corp (SMTC) Stock Analysis
Verdict: HOLD
AI connectivity demand drives record Q2 revenue and EPS growth, but rich valuation at 89.2x TTM P/E and insider selling constrain near-term upside.
Investment score: 60/100
Analysis as of
Is Semtech Corp stock worth reviewing? AI model thesis
The AI model assigns a HOLD rating to Semtech Corp (SMTC) with a score of 60/100. Strong operational tailwinds from AI optical connectivity are balanced by elevated valuation multiples and persistent insider liquidations.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 70/100 (weight 15%)
- Technical Momentum: 80/100 (weight 15%)
- Earnings Quality: 80/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 85/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Semtech Corp opportunities and risks
What speaks for SMTC
- AI Data Center Interconnect Surge
What speaks against SMTC
- Concentration Risk in Data Center Spending
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| SMTC | 89.2x | 11.7x | 119.2x | 52.0% | 13.1% | 1.3% |
| GFS | 35.0x | 3.6x | 12.0x | 27.4% | 10.3% | 3.2% |
| FSLR | 12.6x | 4.1x | 8.4x | 44.0% | 32.5% | 6.8% |
| MTSI | 84.0x | 17.6x | 59.7x | 56.6% | 20.7% | 0.6% |
| SITM | 1154.9x | 34.5x | 300.6x | 58.7% | 3.0% | 0.4% |
| LSCC | 438.2x | 24.4x | 181.6x | 67.7% | 5.6% | 1.3% |
| Peer median | 84.0x | 17.6x | 59.7x | 56.6% | 10.3% | 1.3% |
Frequently asked questions about Semtech Corp (SMTC)
Is SMTC stock a good investment?
The cached TradeMates AI model rates Semtech Corp as HOLD with an investment score of 60/100. The AI model assigns a HOLD rating to Semtech Corp (SMTC) with a score of 60/100. Strong operational tailwinds from AI optical connectivity are balanced by elevated valuation multiples and persistent insider liquidations. This is algorithmic model output, not personal investment advice.
Is SMTC stock a buy?
The TradeMates model verdict for SMTC is HOLD with an investment score of 60/100. Treat this as a model signal to review, not a personal buy recommendation.