Semtech (SMTC) to Aid Signal Integrity Segment With LPO Modules
Semtech Corporation SMTC has announced that it will showcase new products to highlight its advancement in Linear Pluggable Optics (LPO) solutions at the Optical Fiber Communication 2024 exhibition.
This includes 400Gbps SR4 LPO modules and 800G SR8 LPO modules, featuring Semtech’s DirectEdge GN1858 quad VCSEL driver and GN1856 quad TIA.
Further, Semtech will also showcase a 400Gbps DR4 LPO module featuring Semtech’s FiberEdge MZM driver and GN1814 quad TIA.
Additionally, the company will introduce a 400Gbps FR4 LPO module and an 800Gbps DR8 LPO module featuring Semtech’s FiberEdge EML driver and the latest switch ASIC technology.
Semtech is expected to gain solid traction across data centers using LPO applications offerings on the back of the latest move.
Moreover, it will enable the company to capitalize on growth opportunities present in the global LPO market. Per a GII report, the global LPO market is expected to reach $1.99 billion by 2029, exhibiting a CAGR of 113.3% between 2023 and 2029.
Semtech Corporation Price and Consensus
Semtech Corporation price-consensus-chart | Semtech Corporation Quote
Growing Focus in Signal Integrity Segment
Apart from the latest move, the company showcased its 200G PAM4 MZM driver at the European Conference on Optical Communication (ECOC) 2023 exhibition in collaboration with Coherent COHR, demonstrating the PAM4 MZM driver’s capabilities by using Coherent’s 200G DFB-MZ laser.
This Coherent partnership enabled Semtech to deploy 200G per lane using advanced optics, paving the way for 1.6T and 3.2T optical transceiver deployments.
Further, Semtech collaborated with Broadcom AVGO to demonstrate a 200G/lane optical transceiver at ECOC 2023, featuring FiberEdge 200G PAM4 PMDs and Broadcom's DSP PHY and single-mode optics.
The partnership with Broadcom will enable the development of next-generation optical modules, capable of bandwidths up to 1.6TB, to drive the adoption of 51.2TB next-generation switching platforms.
All the above-mentioned endeavors will enable SMTC to capitalize on growth opportunities present in the global fiber optics market. Per a Grand View Research report, the global fiber optics market is expected to witness a CAGR of 6.9% during the forecast period of 2023-2030.
Moreover, these product launches will likely strengthen Semtech’s Signal Integrity segment’s performance, which is a growth driver for the company. Its shares have rallied 14.9% in the year-to-date period compared with the Zacks Computer & Technology sector’s growth of 12%.
The strengthening Signal Integrity segment is expected to aid its overall financial performance in the near term.
The Zacks Consensus Estimate for 2024 total revenues stands at $867.07 billion, indicating year-over-year growth of 14.6%.
Intensifying Competition
The aforementioned endeavors will likely aid this Zacks Rank #3 (Hold) company in strengthening its competitive position against peers like MACOM Technology Solutions MTSI and Broadcom, which are also making continuous efforts to capitalize on the growth opportunities present in the global fiber optics market.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, MACOM recently announced its plans to showcase new products to highlight its advancement in 200G per lane technology at the Optical Fiber Communication Conference and Exposition.
This includes a 200 Gbps per lane LPO solution and new four channel, 226 Gbps per lane linear equalizers for active copper cable applications up to 1.6TB.
Broadcom, on the other hand, launched Sian BCM85822, a 200G per lane optical PAM-4 DSP PHY, strengthening its foothold in the global fiber optics market.
Sian BCM85822 utilizes 200G/lane serial optical interfaces to efficiently deliver 800G and 1.6T pluggable modules, addressing the growing bandwidth and low power consumption needs of hyperscale data centers.
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