Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, it's pretty easy to find cutting-edge growth sto ...

Semtech TodaySMTCSemtech$66.96 +1.81 (+2.78%) 52-Week Range$18.16▼$70.27Price Target$68.70Add to WatchlistSemtech Co. NASDAQ: SMTC makes analog and mixed-signal chips that enable optical data transmission, sensing, and advanced high-speed connectivity solutions. Its products are used in consumer electronics, infrastructure, industrial applications, data centers, and Internet of Things (IoT) systems. The company’s turnaround is impressive as its revenue has returned to growth since its fiscal first quarter ...

Working Capital and Cash Flow Management - Working capital fluctuates based on end-market demand and management of receivables, inventory, and payables, potentially increasing during periods of escalating demand[175] - Net cash provided by operating activities for the nine months ended October 27, 2024, was $24.491 million, compared to a net cash used of $107.839 million for the same period in 2023[176] - Operating cash flows for the first nine months of fiscal year 2025 were positively impacted by reduced annual bonus payments, lower payroll costs, decreased income tax payments, and lower transaction and integration costs[177] - Net sales decreased by 2.6%, negatively impacting operating cash flows, while inventory spend increased[179] Capital Expenditures and Investments - Capital expenditures for the first nine months of fiscal year 2025 were $5.2 million, significantly lower than the $27.5 million in the same period of 2024 due to cost-saving initiatives[179] - The company sold investments for proceeds of $2.7 million and made strategic investments of $0.4 million in the first nine months of fiscal year 2025[179] - Purchases of intangibles, including capitalized development costs and software licenses, totaled $5.9 million for the first nine months of fiscal year 2025[179] Financial Transactions and Payments - Proceeds from corporate-owned life insurance were $4.8 million in the first nine months of fiscal year 2025, compared to $2.5 million in the same period of 2024[179] - The company made a $5.0 million payment on its Revolving Credit Facility in the first nine months of fiscal year 2025, compared to borrowing $70.0 million in the same period of 2024[179] - Employee share-based compensation payroll taxes paid in the first nine months of fiscal year 2025 were $7.3 million, with $1.2 million received from the exercise of stock options[179]

Semtech TodaySMTCSemtech$64.04 -0.16 (-0.25%) 52-Week Range$15.63▼$66.64Price Target$67.70Add to WatchlistThe emerging story from the industrial semiconductor market is that these companies are exiting a global inventory correction, and Semtech NASDAQ: SMTC is among the best positioned. Its results prove its market-leading position by resuming growth in Q3, at least a quarter sooner than others are expected to do, and the guidance compounds this.  The guidance is robust, forecasting sequential acceleration ...

Semtech Corporation (SMTC) reported third-quarter fiscal 2025 non-GAAP earnings of 26 cents per share, which surpassed the Zacks Consensus Estimate by 8.33%. The bottom line also exceeded management’s guidance of 23 cents and showed a robust improvement from the year-ago quarter’s earnings of 2 cents.The company's impressive bottom-line performance demonstrated its operational excellence and effective expense management.Semtech’s earnings beat the Zacks Consensus Estimate twice over the trailing four quarte ...

Semtech stock is on track for its best day in nearly a yearSemiconductor stock Semtech Corp (NASDAQ:SMTC) is soaring today, up 16% at $61.99 at last check, and earlier traded as high as $63.63, after the company announced better-than-expected third-quarter results and lifted its current-quarter revenue forecast. No fewer than six analysts lifted their price targets after the news, including Craig-Hallum to $70 from $48. A short squeeze could be powering today's breakout, with a healthy 9.2% of SMTC's total ...

Semtech Corporation SMTC reported better-than-expected third-quarter financial results and issued fourth-quarter guidance with its midpoint above estimates.Semtech reported quarterly earnings of 26 cents per share which beat the analyst consensus estimate of 23 cents per share. The company reported quarterly sales of $236.80 million which beat the analyst consensus estimate of $232.06 million.“We are very pleased to report broad-based growth across each of our end markets, and particularly in data center, w ...

Core Insights - Michael Wiggins De Oliveira is identified as an inflection investor, focusing on acquiring undervalued companies at pivotal moments when their business narratives are shifting towards increased profitability over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] Professional Background - With over 10 years of experience in analyzing various companies, Michael has developed significant expertise in the tech and energy sectors, amassing a following of over 40,000 on Seeking Alpha [2] Investment Group - Michael leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates on stock selections, and a weekly webinar for live advice [3] - The group provides a supportive community for both new and experienced investors, facilitating engagement through chat [3]

Financial Data and Key Metrics - Net sales for Q3 2025 were $236.8 million, up 10% sequentially [40] - Gross margin was 52.4%, up 200 basis points sequentially and 110 basis points year-over-year [41] - Operating income was $43.4 million, resulting in an operating margin of 18.3%, up 410 basis points sequentially and 810 basis points year-over-year [41] - Adjusted EBITDA was $51.1 million, with an adjusted EBITDA margin of 21.6%, up 280 basis points sequentially and 760 basis points year-over-year [42] - Net earnings per share were $0.26, up from $0.11 in Q2 and $0.02 in Q3 of the previous year [43] - Operating cash flow for Q3 was $29.6 million, and free cash flow was $29.1 million [44] Business Line Performance - Infrastructure net sales were $65.8 million, up 24% sequentially and 52% year-over-year [17] - Data center net sales reached a record $43.1 million, up 58% sequentially and 78% year-over-year [17] - High-end consumer net sales were $40 million, up 8% sequentially, with TVS net sales growing to $28.3 million, up 9% sequentially and 7% year-over-year [27] - Industrial net sales were $131 million, up 5% sequentially, with LoRa-enabled solutions recording $29 million in net sales, up 1% quarter-over-quarter and 104% year-over-year [30] - IoT systems business recorded net sales of $57.9 million, up 11% sequentially [34] - IoT connected services net sales were $24.6 million, with slight sequential and year-over-year growth [37] Market Performance - Data center growth was driven by strong demand for CopperEdge and Tri-Edge PAM4 products, with shipments commencing for CopperEdge 200-gig linear redriver used in 1.6T Active Copper Cable (ACC) applications [18][24] - Telecom business, including PON and backhaul, reported net sales of $20.5 million, with support for a pilot build of triple-gen 50-gig PON with a major Chinese carrier [26] - High-end consumer market saw growth in TVS and PerSe products, with design wins across smartphones, computing, and wearables [27][29] - Industrial market growth was supported by LoRa Gen 2 and Gen 3 products, with increasing adoption in asset tracking and smart metering [30][31] - IoT systems business benefited from strong bookings and backlog, with a focus on federal agencies and critical infrastructure markets [35] Strategic Direction and Industry Competition - The company is increasing investment in data center products, projecting it as a long-term and transformational growth engine [10] - Portfolio rationalization and balance sheet improvement remain key priorities, with a focus on debt repayment and reducing leverage [11] - Operational excellence and customer engagement have driven market share gains and SAM expansion, particularly in data center and high-end consumer markets [12][13] - The company is leveraging its design competency and aligning with key customers' multi-generational roadmaps [12] - LoRaWAN remains a key strategic focus, with momentum building for gapless coverage and asset tracking applications [33] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in near- and long-term growth prospects, citing strong Q3 results and a positive Q4 outlook [7][8] - The company expects continued growth in net sales, gross margin, operating margin, and adjusted EBITDA margin in Q4 [45][48] - Data center applications are expected to lead growth in Q4, with infrastructure providing the strongest near-term tailwind [45] - High-end consumer market net sales are expected to decline due to seasonality, while industrial net sales are expected to increase, driven by LoRa and cellular IoT portfolio [46][47] Other Important Information - The company launched Semtech RISING, an initiative focused on employee development, mentorship, recognition, and pay-for-performance [15] - The Compensation Committee was renamed the Human Capital and Compensation Committee to emphasize the importance of human capital development [16] - The company made principal payments of $5 million in Q3 and $10 million subsequent to the quarter, consistent with its capital allocation priority of reducing debt [44] Q&A Session Summary Question: Data Center Business and ACC TAM - Management reaffirmed confidence in the ACC TAM, citing ecosystem engagement and the Catalina platform as key drivers [53][55] - Linear equalizer applications in cables, PCBs, and connectors are expected to contribute to revenue starting mid-2025 [57] Question: LPO Opportunity - Initial orders for LPO TIAs have been received, with meaningful net sales contribution expected by the latter portion of FY '26 [58] - LPO adoption is expected to increase due to improved signal-to-noise ratio in current and future-generation switches [67] Question: Blackwell GPU Rack Designs - Management noted that 72 GPUs are ideal for cluster sites, with 36x2 configurations being adopted by leading CSPs for 2025 and beyond [73][74] Question: Free Cash Flow and Debt Leverage - The company generated $29.6 million in operating cash flow and $29.1 million in free cash flow in Q3, with a focus on deleveraging [86] Question: PON Business and China Market - PON business remains primarily focused on China, with a triple-gen demonstration supporting 10-gig, 25-gig, and 50-gig capabilities [94] - The company is also engaging with US equipment manufacturers for PON opportunities [95] Question: LoRa Growth and Applications - LoRa growth is driven by smart metering, asset tracking, and smart home/factory applications, with new products (Gen 3 and Gen 4) expected to further enable ecosystem development [97][100] Question: Data Center Opportunity and Divestitures - The company is broadening its data center opportunity beyond a single platform, with a focus on 200-gig ports as a key metric [105][107] - Portfolio rationalization remains a priority, with potential divestitures of non-core businesses [122] Question: Gross Margin Outlook - Gross margin improvement is primarily driven by product mix, with scale also contributing to margin expansion [126]

1 | QUARTERLY EARNINGS PRESENTATION | Q3'25 SEMTECH® QUARTERLY EARNINGS PRESENTATION Q3'25 NASDAQ: SMTC Safe Harbor Statement This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on the Company's current expectations, estimates and projections about its operations, industry, financial condition, performance, results of operations, and liquidity. Forward-looking statements are stat ...