$SMTC

Tower Semiconductor (TSEM) stock rose 8.81% after expanding a multi-year silicon germanium manufacturing agreement with Semtech. The deal secures dedicated capacity for Semtech across TSEM's global facilities, tying TSEM to AI data center growth. TSEM trades at 16.5x sales and 8.9x book value, with $1.57B revenue and $17.95B enterprise value. The stock corrected from $258 to $179 recently, with support near $170.

Semtech (SMTC) announced its AirLink XR60, XR80, and XR90 in-vehicle 5G routers, which support network slicing and FIPS 140-3 compliance. These routers are designed for first responders to ensure reliable connectivity during network congestion. The routers are FirstNet Trusted and certified for T-Mobile and Verizon's network slices. Semtech will showcase these solutions at IACP 2026.

Credo Technology's shares rose 7% following Super Micro's revised fiscal first-quarter revenue forecast, which increased by about $4 billion due to higher AI platform demand. Super Micro now expects $18.5B-$19.5B in revenue. Analysts anticipate Credo's revenue to nearly double to $2.5B by fiscal 2027. Other AI-related stocks like Lumentum, Coherent, Semtech, and Astera Labs also saw gains.

Semtech and Tower Semiconductor have agreed to secure dedicated SiGe capacity for Semtech's signal integrity products, used in optical transceivers and data center links. The deal aims to meet growing demand for high-speed interconnects in AI data centers. Both companies emphasize long-term planning and geographic diversification for supply security.

B.Riley reiterated a Buy rating and $210 price target on Semtech (SMTC) after its Data Center Analyst Day, citing increased fiscal 2027 outlook and fiscal 2030 targets. Semtech guided Q3 fiscal 2027 midpoint sales up 56% YoY, with Data Center business expected to double by fiscal 2028. The stock has gained 96% YTD but trades above Fair Value according to InvestingPro data.

Analysts have differing views on Semtech (SMTC) and HP (HPQ). Roth MKM's Scott Searle maintained a Buy rating on SMTC with a $220 target, while RBC's David Paige kept a Hold on HPQ with a $33 target. SMTC has a Strong Buy consensus and $217.93 avg target, while HPQ has a Moderate Sell consensus and $26.85 avg target.

The Nasdaq fell over 1% as AI-related stocks declined. RBC Capital Markets shifted sector allocations, upgrading health care and downgrading technology. Semtech (SMTC) saw mixed analyst actions, Klaviyo (KVYO) was downgraded, and Manhattan Associates (MANH) received split views. The S&P 500 is down 1.13% today and 2.02% this week, trading at 7,656.89.

Semtech, a semiconductor company, aims to more than double its data center revenue by financial 2028 and 2029. Baird reaffirmed its 'outperform' rating and $300 price target, citing strong demand for copper, fiber, and optical connectivity. The company's CopperEdge and FiberEdge portfolios are gaining market share, with significant power savings and performance improvements.

TD Cowen maintained a Buy rating on Semtech with a $215 price target, suggesting a 49.1% upside from the Oct 15 close. The firm expects strong revenue growth, driven by datacenter and IoT markets, and highlights Semtech's expertise in signal integrity.

Stifel reaffirmed a Buy rating and $200 price target for Semtech, suggesting a 38.7% upside. The firm cited strong growth potential with a 38% CAGR through FY30, driven by Data Center and LoRa market demand, and successful transformation efforts.