Semtech SMTC continues to make efforts toward expanding its signal integrity solutions portfolio to sustain its momentum in the semiconductor industry.
The latest introduction of two integrated circuit (IC) solutions, namely GN1300 and GN1400 transimpedance amplifiers (TIA), bodes well for the aforesaid portfolio.
Both solutions added strength to SMTC’s FiberEdge platform.
GN1300 and GN1400 TIAs are expected to boost Semtech’s prospects in the promising 5G market as they enable industrial temperature range operation for use in optical modules for 5G wireless base stations.
Further, the new solutions are designed to operate in both single- and multiple-color wavelength-division multiplexing optical modules.
We believe, the latest move is likely to boost the adoption rate of the FiberEdge platform in the days ahead.
Semtech Corporation Price and Consensus
Semtech Corporation price-consensus-chart | Semtech Corporation Quote
Expanding Signal Integrity Solutions Portfolio
In addition to the launch of GN1300 and GN1400 TIAs, Semtech is gearing up for unveiling the next-generation Tri-Edge GN2559S receiver.
Semtech is also set to unveil Tri-Edge GN2256, a bidirectional analog PAM4 CDR with an integrated differential driver, suitable for 5G front-haul deployments.
Additionally, Semtech will introduce a 200G per Lane FiberEdge physical medium-dependent chipset and a ClearEdge CDR Transmitter solution named GN2105S.
SMTC also made GN1848, a FiberEdge platform of PAM4 chipsets, and GN1816, a FiberEdge platform of PAM4 linear transimpedance amplifiers, available for customers.
All these endeavors are likely to contribute well to top-line growth of Signal Integrity Product Group, which is integral to Semtech’s product menu.
The underlined product group generated revenues of $87.4 million (accounting for 41.7% of total second-quarter fiscal 2023 revenues), up 19.5% on a year-over-year basis.
This, in turn, will drive SMTC’s total revenues.
However, uncertainties related to the ongoing pandemic remain a concern. Semtech expects the Signal Integrity Product Group revenues to decline in third-quarter fiscal 2023.
Shares of Semtech have lost 66.3% on a year-to-date basis compared with the industry’s decline of 24.3%.
Zacks Rank & Stocks to Consider
Currently, Semtech carries a Zacks Rank #5 (Strong Sell).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Arista Networks ANET, Teradata TDC and Monolithic Power Systems MPWR. While Arista Networks sports a Zacks Rank #1 (Strong Buy), Teradata and Monolithic Power Systems carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has lost 20.8% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.6%.
Teradata has lost 27.1% in the year-to-date period. The long-term earnings growth rate for TDC is currently projected at 27.4%.
Monolithic Power Systems has lost 18.2% in the year-to-date period. The long-term earnings growth rate for MPWR is currently projected at 25%.
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