Semtech (SMTC) to Boost 5G Market Reach With New Solutions
Semtech SMTC is leaving no stone unturned to bolster its presence in the booming 5G infrastructure market on the back of its advanced solutions.
This is evident from its latest announcement regarding the production availability of two new solutions for transimpedance amplifiers (TIAs), namely FiberEdge GN1300 and GN1400.
The new solutions provide optimized performance for the PIN receiver optical sub-assembly (ROSA) and APD ROSA applications. This enables customers to advance their 25G optical module solutions required in the 5G wireless market.
Hence, both GN1300 and GN1400 are ideal for optical module solutions used in 5G wireless infrastructure as they deliver high-performance signal integrity.
Semtech Corporation Price and Consensus
Semtech Corporation price-consensus-chart | Semtech Corporation Quote
Moreover, the solutions allow industrial temperature range operation for these optical modules.
With the latest move, Semtech has added strength to its FiberEdge portfolio.
Growth Prospects
The production availability of GN1300 and GN1400 positions Semtech well to capitalize on the growth prospects present in the 5G infrastructure market.
According to a report from Mordor Intelligence, the global 5G infrastructure market is anticipated to witness a CAGR of 53.01% between 2023 and 2028.
A report from Grand View Research, the underlined market is expected to register a CAGR of 34.2% between 2022 and 2030.
Additionally, an Allied Market Research report indicates that the 5G infrastructure market is likely to reach $83.62 billion by 2030 at a CAGR of 45.3% between 2021 and 2030.
We believe Semtech’s growing presence in this promising market is expected to aid it in winning investor optimism in the near term.
Expanding Product Portfolio
The latest move is in sync with the company’s growing efforts toward expanding its overall product portfolio.
Recently, Semtech has joined the Mobile Optical Pluggable Alliance along with other industry leaders to develop optical pluggable requirements for next-generation 5G wireless technology.
Additionally, the company expanded its Signal Integrity portfolio by introducing new products, which include the likes of 200G/lane optical link and PON-X chipset for 50G High Speed PON. As a part of the same portfolio, it announced the sampling availability of FiberEdge GN1825 TIA and the production availability of FiberEdge GN1814 TIA.
We believe that Semtech’s portfolio strength will continue to help it to sustain momentum among customers.
Zacks Rank & Stocks to Consider
Currently, Semtech carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks ANET, Agilent Technologies A and AMETEK AME. While Arista Networks sports a Zacks Rank #1 (Strong Buy), Agilent and AMETEK carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 22.7% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%.
Agilent shares have gained 4.9% in the past year. A’s long-term earnings growth rate is currently projected at 12%.
AMETEK shares have gained 9.8% in the past year. The long-term earnings growth rate for AME is currently projected at 8.81%.
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