BN · rank #11 · 2026-09-04
SMTC
NASDAQ · $12.64B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.62 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +29.2% |
| Forward net margin Consensus forward net margin. | +17.1% |
| Net margin TTM Trailing twelve month net margin. | +13.1% |
| Margin expansion Forward minus trailing net margin (percentage points). | +3.9% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 3.39 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 2.89× |
| Analyst upside Spread between the consensus 12m target and the current price. | +54.6% |
| Last EPS surprise Most recent reported EPS versus consensus. | +24% |
| Market cap (USD) | $12.64B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Semtech Corporation designs and manufactures high-performance analog and mixed-signal semiconductors for AI data center optical and copper interconnects, alongside low-power wide-area LoRa IoT connectivity solutions.
Rationale
The quant model's growth and margin expansion signals are validated by record Q2 FY2027 performance, where explosive demand for Semtech's energy-efficient FiberEdge and CopperEdge platforms in scaling AI GPU clusters drove a 33% year-over-year revenue increase.
Material risks
- 1Severe manufacturing capacity constraints, with critical component demand outpacing supply by 3x, require flawless execution in tripling output at the newly acquired HieFo Indium Phosphide fab.
- 2Lack of long-term take-or-pay contracts limits structural revenue visibility and exposes the premium fwd PEG of 3.4 to sudden customer architectural shifts or intense competition from alternative connectivity technologies.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.