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Semtech Corporation SMTC has been consistently gaining customer momentum on the back of the robust LoRa technology.
This is evident by the company’s recent partnership with Vietnam-based Internet of Things provider, Cloud Energy, for integrating LoRaWAN standard in the latter’s rooftop wireless solar power system.
Using Semtech’s LoRa technology, the solar power system can monitor real-time data for reviewing and projecting performance across inverters, electricity meters and sensors.
The LoRaWAN standard has bolstered connectivity capabilities in order to offer stable data transmission to allow end-users to manage energy usage across wide areas.
The recent collaboration highlights the efficiency and reliability of Semtech’s LoRa devices and LoRaWAN connectivity.
Further, it has added strength to Semtech’s client base, which is expected to contribute well to the company’s top-line growth in the upcoming period.
Semtech Corporation Price and Consensus
Semtech Corporation price-consensus-chart | Semtech Corporation Quote
Winning Partnerships for LoRa Technology
Semtech has won quite a few deals with several companies in recent times, owing to its cost-effective LoRa technology. The recent integration is a step forward in this direction.
Apart from the latest partnership, the company’s LoRa devices and LoRaWAN standard were incorporated by IQnexus for its Indoor Air and Environment Quality sensors.
Its LoRaWAN standard was selected by eLichens for avolta gas sensor to detect gas leaks and prevent accidents related to gas leaks in cities.
Additionally, it collaborated with the national postal service of Switzerland, Swiss Post, wherein its LoRa devices and LoRaWAN standard will be integrated into Swiss Post “Order Pens” for delivering postal service to Swiss citizens and businesses.
The company also collaborated with DIC to integrate its LoRaWAN standard with the latter’s HatteTotte sensors. The integration permits long-distance communication and less power consumption.
The recent integrations are expected to contribute significantly to revenues of the Wireless and Sensing segment in the near term.
Notably, the particular segment has become an integral part of Semtech’s overall business. It generated 34% of total revenues in second-quarter fiscal 2022. Also, revenues from the segment grew 61.2% year over year.
LoRa Portfolio – Key Strength
Semtech’s growing customer momentum is attributed to its increasing initiatives toward bolstering LoRa solutions.
In late April, Semtech added a product named LoRa Corecell Reference Design to its LoRa Core portfolio for full duplex gateway applications in the U.S. 902 – 928MHz ISM band. The new solution enables LoRaWAN gateways to simultaneously receive and transmit data.
Early this year, the company introduced the LoRa Core portfolio, consisting of a new chipset. The portfolio offers LoRaWAN network coverage to various vertical industries, including asset tracking, building, home, agriculture, metering and factory automation.
We believe that these efforts poise Semtech well in penetrating the booming LoRa and LoRaWAN devices market, which, is likely to hit $6.2 billion by 2026, witnessing a CAGR of 36.5% between 2021 and 2026, per a report by IndustryARC.
Zacks Rank & Other Stocks to Consider
Currently, Semtech sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader technology sector are ON Semiconductor ON, Teradata Corporation TDC and Avnet AVT. All companies currently flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for ON Semiconductor, Teradata and Avnet are currently projected at 53.9%, 27.4% and 25.4%, respectively.
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