Key Takeaways LYFT, GTLB, EPAM, ONTO and SMTC are five mid-cap tech picks showing solid price upside and rising estimates. LYFT, GTLB, EPAM, ONTO and SMTC all show improving earnings outlooks and growth prospects. Brokerage targets across these names suggest meaningful upside ranges despite varied risk profiles.U.S. stock markets have been witnessing an astonishing bull run since the beginning of 2023 barring some minor fluctuations. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Compos ...

Core Insights - Semtech Corporation (SMTC) is set to report its second-quarter fiscal 2025 results on August 25, with anticipated revenues of $256 million, reflecting an 18.9% increase year-over-year [1][10] Revenue and Earnings Expectations - For the fiscal second quarter, Semtech expects non-GAAP earnings per share to be 40 cents, showing a significant improvement from 11 cents in the same quarter last year [2][10] Performance Drivers - The anticipated strong performance is attributed to growth in infrastructure and high-end consumer markets, as well as robust demand in the wireless sector driven by 5G offerings [3][10] - The launch of cost-optimized 5G solutions, including EM9492 and EM9295 modules, is expected to enhance adoption among telecom carriers [3] - Increased compliance with various certifications for 5G modules is likely to boost their acceptance among global networking carriers [3] - Strong momentum in Signal Integrity and Analog Mixed Signal & Wireless product lines is expected to contribute positively [4] - Demand for Tri-Edge and FiberEdge products in hyperscale data centers is anticipated to aid performance [5] - The growing popularity of LoRa devices and LoRaWAN standards is expected to positively impact top-line growth [6] Challenges - Macroeconomic factors such as prolonged inflation and high interest rates may pose challenges for Semtech in the fiscal second quarter [7] - Tensions between the United States and China could raise concerns, while softness in the industrial end-market and Connectivity segment is expected to negatively affect results [7]

Core Viewpoint - Semtech Corporation (SMTC) is expected to report strong financial results for the first quarter of fiscal 2026, with significant year-over-year growth in both net sales and earnings per share. Financial Performance - Semtech anticipates net sales of $250 million (+/- $5 million), reflecting a 21% year-over-year growth, with the Zacks Consensus Estimate for revenues at $249.79 million, indicating a rise of 21.20% from the previous year [1][2] - The company expects non-GAAP earnings per share to be 37 cents (+/- 3 cents), while the consensus mark is at 38 cents, showing a robust year-over-year improvement of 533% [2] Market Drivers - The fiscal first-quarter performance is likely to benefit from strength in infrastructure and high-end consumer markets, with strong growth in the wireless end-market attributed to increasing 5G offerings [3] - Continued growth in FiberEdge and Tri-Edge products, especially for 400G/800G modules, is expected to boost revenue [3] - Strong momentum in Signal Integrity and Analog Mixed Signal & Wireless product lines is anticipated to contribute positively, alongside the growing adoption of artificial intelligence [4] - Increased demand for LoRa devices and LoRaWAN standards is expected to positively impact top-line growth, particularly with new product offerings targeting smaller-scale network deployments [5] Challenges - Macroeconomic challenges, including prolonged inflation and high interest rates, may pose difficulties for the company [6] - Delayed adoption of CopperEdge products due to architectural changes in server racks could negatively affect results [6] - Escalating tensions between the United States and China, along with softness in the industrial end-market and Connectivity segment, are expected to be significant negatives [7]

Group 1: Market Overview - The S&P 500 Index is down approximately 14% from its 52-week high, while the Invesco PHLX Semiconductor ETF is down around 35% from its highs [1] - Lesser-known chip stocks Semtech and Onsemi have experienced declines of more than 50% from their 52-week highs, presenting potential long-term growth opportunities [2] Group 2: Semtech Analysis - Semtech's stock has dropped 69% from its 52-week high, despite a significant improvement in its financial position [2] - In the most recent quarter, Semtech's revenue rose 30% year-over-year, with adjusted operating margin nearly doubling to nearly 20% [3] - The infrastructure segment, which includes data center customers, saw a 75% year-over-year growth [3] - Semtech's LoRa devices in the Industrial market experienced a revenue increase of 205% from the prior year quarter, indicating strong customer resonance [4] - The current price target for Semtech is $57.33, suggesting a potential upside of 112.42% [6] - Morgan Stanley analysts have set a price target of $30 for Semtech, indicating a 22% upside over the next 12 months [7] Group 3: Onsemi Analysis - Onsemi's stock is down nearly 56% from its 52-week high, primarily due to negative revenue growth for six consecutive quarters [8] - Despite the downturn, Onsemi maintains strong profitability with an adjusted gross profit margin of around 45% and an adjusted operating margin of more than 25% [9] - The company targets revenue growth of 10% to 12% through 2027 and aims for a 40% operating margin [10] - Onsemi is well-positioned to benefit from megatrends such as increasing electric vehicle ownership and has a strong focus on silicon carbide (SiC)-based chips [10][11] - The 12-month stock price forecast for Onsemi is $63.52, indicating a potential upside of 73.08% [12] - Analysts remain cautiously optimistic about Onsemi, with a mix of Buy and Hold ratings [13]