SMTC Should I Buy
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$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
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Semtech Corp (SMTC) does not present a compelling buy opportunity for a beginner, long-term investor at this moment. While there are positive growth catalysts in the AI and IoT sectors, the company's recent financial performance, particularly its negative net income and EPS decline, raises concerns. Additionally, no strong trading signals or significant news catalysts are present to justify immediate action.
The stock shows a bullish trend with SMA_5 > SMA_20 > SMA_200, and the MACD histogram is positive at 0.34. RSI is neutral at 55.303, indicating no overbought or oversold conditions. Key support is at 78.508, and resistance levels are at 91.107 and 94.998. However, the pre-market price is slightly down by -0.21%, suggesting weak momentum.
Analysts have raised price targets consistently, with the highest target at $95, reflecting optimism about the company's growth in AI, IoT, and data center segments. Gross margin has improved YoY to 51.81%, indicating operational efficiency.
Net income dropped significantly by -62.27% YoY, and EPS fell by -70.00% YoY. No recent news or significant insider or hedge fund activity to indicate strong interest in the stock. Congress trading data is also absent.
In Q3 2026, revenue increased by 12.73% YoY to $266.97M, but net income dropped to -$2.86M, and EPS declined to -$0.03. While gross margin improved slightly, the overall financial performance is weak.
Analysts are generally positive, with multiple firms raising price targets and maintaining Buy or Overweight ratings. However, some concerns about margin pressure and lack of EPS upside persist.
