Semtech (SMTC) Stock Could Be 14.7% Undervalued As AI Data Center Demand Lifts Outlook

Simply Wall St.06-23 13:23

Semtech (SMTC) is back on investor radar after increased AI led data center networking demand and recent portfolio changes aimed at optical modules, which have shifted expectations for the company’s ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2645885271?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/8212000-choice2-main-header/1585186783100","is_english":true,"pubTime":"2026-06-23 13:23","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2645885271","market":"sg","top_or_hot":-1,"title":"Semtech (SMTC) Stock Could Be 14.7% Undervalued As AI Data Center Demand Lifts Outlook","media":"Simply Wall St.","content":"<div>\n<p>Semtech (SMTC) is back on investor radar after increased AI led data center networking demand and recent portfolio changes aimed at optical modules, which have shifted expectations for the company’s ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-smtc/semtech/news/semtech-smtc-stock-could-be-147-undervalued-as-ai-data-cente\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Semtech (SMTC) Stock Could Be 14.7% Undervalued As AI Data Center Demand Lifts Outlook</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSemtech (SMTC) Stock Could Be 14.7% Undervalued As AI Data Center Demand Lifts Outlook\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-06-23 13:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/semiconductors/nasdaq-smtc/semtech/news/semtech-smtc-stock-could-be-147-undervalued-as-ai-data-cente><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Semtech (SMTC) is back on investor radar after increased AI led data center networking demand and recent portfolio changes aimed at optical modules, which have shifted expectations for the company’s ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-smtc/semtech/news/semtech-smtc-stock-could-be-147-undervalued-as-ai-data-cente\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LYY.SI","symbol_name":"中云集团","start_time":0,"source_url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-smtc/semtech/news/semtech-smtc-stock-could-be-147-undervalued-as-ai-data-cente","article_id":"2645885271","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8212000-choice2-main-header/1585186783100"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-smtc/semtech/news/semtech-smtc-stock-could-be-147-undervalued-as-ai-data-cente","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2645885271","pubTimestamp":1782192198,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Semtech (SMTC) is back on investor radar after increased AI led data center networking demand and recent portfolio changes aimed at optical modules, which have shifted expectations for the company’s future earnings profile.\nSee our latest analysis for Semtech.\nThe recent AI related news around Semtech comes on top of sharp share price momentum. The 90 day share price return is 124.16% and the year to date share price return is 132.17%, while the 1 year total shareholder return of 325.55%...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LYY.SI":"中云集团","LU0205194284.USD":"SCHRODER ISF US SMALL & MID-CAP EQUITY \"A\" (USD) INC AV","BK4141":"半导体产品","AGIX":"通用人工智能 ETF-AGIX","CHAT":"ROUNDHILL GENERATIVE AI & TECHNOLOGY ETF","AIPO":"Defiance AI and Power Infrastructure ETF","LU0106261612.USD":"SCHRODER ISF US SMALLER COMPANIES IMPACT \"A\" ACC","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4588":"碎股","BK6051":"信息科技咨询与其它服务","LU0012050646.USD":"SCHRODER ISF US SMALLER COMPANIES IMPACT \"A\" (USD) INC AV","DTCR":"Global X Data Center & Digital Infrastructure ETF","LU0205193047.USD":"SCHRODER ISF US SMALL & MID-CAP EQUITY \"A\" (USD)  ACC","ARTY":"ISHARES FUTURE AI & TECH ETF","BK4585":"ETF&股票定投概念","BLOK":"Amplify Transformational Data Sharing ETF","SMTC":"先科电子"},"translate_title":"随着人工智能数据中心需求提振前景，Semtech(SMTC)股票可能被低估14.7%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CHAT":1.5,"LYY.SI":1.5,"BLOK":1.5,"DTCR":1.5,"SMTC":1.5,"ARTY":1.5,"AGIX":1.5,"AIPO":1.5,"DCF":1},"content_text":"Semtech (SMTC) is back on investor radar after increased AI led data center networking demand and recent portfolio changes aimed at optical modules, which have shifted expectations for the company’s future earnings profile. See our latest analysis for Semtech. The recent AI related news around Semtech comes on top of sharp share price momentum. The 90 day share price return is 124.16% and the year to date share price return is 132.17%, while the 1 year total shareholder return of 325.55% signals that sentiment has already shifted materially. If you are weighing Semtech against other data and connectivity plays, it may be worth seeing what is happening across AI infrastructure companies using the 49 AI infrastructure stocks. With Semtech now at $174.73 and the short term analyst price target at $205.25, along with improving revenue and earnings estimates against a still loss-making bottom line, is this surge mispricing risk, or is the market simply catching up to expected future growth? AdvertisementMost Popular Narrative: 14.7% Undervalued At $174.73, the most followed narrative on Semtech points to a fair value of $204.83, framing today’s AI driven optimism against longer term earnings assumptions.  Accelerating demand from hyperscale data centers and AI infrastructure is driving robust, multi-year growth across Semtech's high-margin data center business, supported by design wins in advanced optical (FiberEdge), low-power (LPO), and active copper interconnects (CopperEdge/ACC). As data rates move from 400G to 800G and 1.6T, Semtech stands to capture significant revenue and margin expansion from new content per deployment.  Read the complete narrative. Want to see what sits underneath that AI and data center story? The narrative leans heavily on rapid revenue expansion, rising margins, and a much higher earnings base. The mix of growth assumptions, profitability shift, and future valuation multiple is doing the heavy lifting behind that $204.83 figure. Result: Fair Value of $204.83 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Semtech’s narrative also rests on successful integration of past deals and stable demand from China, where any setback or weaker bookings could quickly challenge these assumptions. Find out about the key risks to this Semtech narrative. Another View: SWS DCF Model Flags Overvaluation While the Semtech narrative points to a fair value of $204.83 and frames the stock as 14.7% undervalued, the SWS DCF model tells a different story with an estimate of $52.55. At a share price of $174.73, that implies Semtech is trading well above this cash flow based view. Which lens do you rely on more for long term decisions? Look into how the SWS DCF model arrives at its fair value. SMTC Discounted Cash Flow as at Jun 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Semtech for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 44 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Next Steps With Semtech framed as both potentially undervalued on narrative assumptions and expensive on a DCF basis, sentiment is clearly split. Consider promptly reviewing the data points that matter most to you and weighing both the upside and downside using the 1 key reward and 1 important warning sign. Looking for more Semtech sized investment ideas? If Semtech has sharpened your focus on where capital could work harder, do not stop here. Broaden your watchlist now using focused stock ideas from the Simply Wall Street Screener.  Zero in on quality at a discount by checking companies highlighted in the 44 high quality undervalued stocks. Prioritise resilience and sleep easier by reviewing the 66 resilient stocks with low risk scores. Get ahead of the crowd by scouting future contenders through the screener containing 19 high quality undiscovered gems.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"dataReport","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.44.0","shortVersion":"4.44.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2645885271","isCrawlerRequest":true}