Baird Reiterates Buy on Semtech (SMTC), Highlights AI Growth and Partnerships

Core Viewpoint - Semtech Corp. has underperformed in the data center stock sector in 2025, despite a slight year-to-date increase of approximately 1.8% in its stock price, lagging behind the broader market and industry peers [1] Group 1: Analyst Ratings and Growth Potential - Baird analyst Tristan Gerra has reiterated a Buy rating on Semtech with a price target of $70, citing several growth areas the company is pursuing [2] - The LoRa segment of Semtech is projected to grow over 20% in 2026, driven by new applications in security and retail, which could lead to market expansion and increased adoption [3] - Partnerships with major U.S. cloud providers on linear pluggable optics (LPOs) present significant pricing potential and could enhance profit margins [4] Group 2: Strategic Developments - Recent design wins with AEC and opportunities in ACC are expected to strengthen Semtech's long-term outlook [4] - Progress in AI infrastructure is identified as another key growth driver for the company [3]