Semtech (SMTC) Bolsters 5G Efforts With New PerSe Chipset
Semtech SMTC has expanded its PerSe product line with the introduction of the PerSe Connect SX9376 chipset, specifically intended for 5G mobile devices.
The chipset enables RF performance optimization, improved connectivity and compliance with global specific absorption rate (SAR) regulations for 5G-enabled consumer products.
Semtech's PerSe technology detects human proximity and adjusts RF emissions automatically, assuring top performance of linked devices while preserving compliance.
The chipset is antenna-compatible and provides robust sensing capabilities with a high-resolution analog front end and improved temperature compensation.
With the latest chipset, Semtech is likely to gain traction among battery-powered, portable applications such as smartphones, wearables, tablets, laptops, handheld gaming devices and other consumer electronics.
Semtech Corporation Price and Consensus
Semtech Corporation price-consensus-chart | Semtech Corporation Quote
Growth Prospects
The company’s latest move positions it well to capitalize on the growth prospects present in the global 5G market.
Per a report from MarketsandMarkets, the underlined market is expected to hit $331.12 billion by 2027, seeing a CAGR of 25.3% between 2022 and 2027.
A report from Grand View Research states that the global 5G market is expected to witness a CAGR of 59.4% between 2023 and 2030.
We believe that Semtech’s growing footprint in this promising market will help it win investors’ confidence in the days ahead.
Coming to the price performance, SMTC has declined 55.5% in the year-to-date period against the industry’s rise of 7.3%.
Expanding Portfolio Offerings
The latest move is in sync with the company’s growing efforts toward expanding its portfolio.
Apart from the latest addition to the portfolio, SMTC announced the availability of the first LoRa-enabled third-party products based on Amazon Sidewalk, which will increase demand for LoRa-enabled development kits and modules and strengthen Semtech's position as a leading technology provider for IoT connectivity.
Semtech also introduced a transceiver, namely LoRa Connect LR1121, which features low power consumption, the LoRaWAN standard, as well as global connectivity. It is ideal for use in Internet of Things (IoT) endpoints.
The company recently collaborated with The Things Industries for IoT solutions, which will combine LoRaWAN and cellular solutions.
These solutions are well-equipped to make end-to-end connectivity integration easier, which will accelerate IoT deployments.
We note that expanding portfolio strength is expected to aid the company’s performance across the various end markets.
However, weak demand environments across the end markets are a major concern. Macroeconomic headwinds, including export restrictions, inflationary pressure and supply-chain constraints, remain overhangs for Semtech.
Zacks Rank and Stocks to Consider
Currently, Semtech carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Arista Networks ANET, Salesforce CRM and Analog Devices ADI. While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has gained 34.2% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 14.17%.
Salesforce has gained 47.3% in the year-to-date period. CRM’s long-term earnings growth rate is currently projected at 16.75%.
Analog Devices has gained 16% in the year-to-date period. The long-term earnings growth rate for ADI is currently projected at 10.5%.
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