Riding Strong Market Demand Today While Laying Foundation For Tomorrow

Research evidence excerpt

Riding Strong Market Demand Today While Laying Foundation For Tomorrow

Semiconductors

Semtech Corp.

TD SECURITIES (USA) LLC EARNINGS UPDATE

May 26, 2026

Price: $164.46 (05/26/2026) Riding Strong Market Demand Today While

Price Target: $210.00 (Prior $165.00) Laying Foundation For Tomorrow

BUY (1)

ESG SCORE: 67/100

Sean O'Loughlin, CFA THE TD COWEN INSIGHT

646 562 1327

A beat & raise plus accelerating Datacenter growth through F2027 "and beyond" was likely

sean.oloughlin@tdsecurities.com

good enough to clear even the high bar set by a +91% stock run since OFC. Active copper,

Joshua Buchalter, CFA LPO, and nascent laser businesses are very attractive additional growth vectors—but near-

646 562 1303 term upside continues to come from highly diversified FiberEdge supporting fully-retimed

joshua.buchalter@tdsecurities.com

800G and 1.6T optics. Reit. Buy, PT to $210.

Lannie Trieu, CFA

415 646 7217 Strong Product Portfolio and Prescient Capacity Planning Meets Seemingly Insatiable

lannie.trieu@tdsecurities.com Demand for Optics: Hinted at during near-peer MACOM's earnings earlier in the month (here)

Ethan Potasnick and noted in our off-cycle preview (here), Semtech is benefitting materially from the strong

646 562 1425 demand for optical transceivers shipping to support AI infrastructure build-outs. Specifically,

ethan.potasnick@tdsecurities.com Semtech described anticipated sequential growth of +35% Q/Q into JulQ for Datacenter (+85%

Y/Y) and noted its expectations were for the business to accelerate through F2027 (we believe

Sam Reiff, CFA

from a Y/Y point of view). Salient in our view were: (1) management noted it did not want to312 577 2217

sam.reiff@tdsecurities.com set a floor based on these comments; and (2) the material step-up in JulQ comes ahead of (we