Semtech Shares Fall 10% as It Raises Third-Quarter Outlook

Semtech shares fell 10.01% Thursday, Oct. 15, closing at $144.21 after losing $16.05. The decline coincided with the semiconductor supplier’s Data Center Analyst Day, where it raised its third-quarter fiscal 2027 net sales and adjusted diluted earnings-per-share outlook.

Semtech now expects third-quarter net sales of $417.5 million, plus or minus $2.5 million, compared with its previous outlook of $410 million, plus or minus $5 million. Its adjusted diluted earnings-per-share estimate increased to $1.14, plus or minus $0.02, from $1.05, plus or minus $0.03. Both midpoint estimates rose.

The company also outlined a fiscal 2030 framework with $3.2 billion in net sales, including $2.1 billion from data-center sales. For fiscal 2026 through fiscal 2030, the framework lists compound annual growth rates of 38% for consolidated sales and 75% for data-center sales. A compound annual growth rate describes the average yearly pace of growth over a period, with gains compounded from one year to the next.

Semtech described the fiscal 2030 figures as targets and goals rather than guidance or forecasts, and said they do not guarantee future performance. The company supplies semiconductors for AI data-center networking and Internet of Things devices.

“AI is driving demand to move more data, faster, with less power,” said Dr. Hong Hou, Semtech’s president and CEO.

The share decline followed an 8.97% drop on Oct. 12 during a broader semiconductor-sector downturn. The Oct. 15 close was at 4 p.m. ET (20:00 UTC).