Semtech bets on data centers
Semtech projects over 50% revenue growth from its data‑center segment in FY2027, driven by acquisitions and new product launches including the HieFo deal. ( ) Management says the acquisition should be immediately accretive to earnings, positioning Semtech squarely in the AI infrastructure theme. (seekingalpha.com)
Semtech paid roughly $34 million in cash to acquire HieFo, adding the company’s high‑efficiency indium phosphide (InP) optoelectronic devices — including lasers and gain chips for optical transceivers — to its portfolio. (semiconductor-today.com) The company reported record fiscal‑2026 sales of $1.05 billion, citing accelerating demand in its networking and data‑center businesses. (finance.yahoo.com) Semtech’s data‑center portfolio showed roughly 58% year‑over‑year growth in the period, and management pointed to 1.6T active copper cable (ACC) deployments and FiberEdge design wins as near‑term revenue catalysts. (ainvest.com) Semtech told investors the HieFo transaction is expected to be accretive to adjusted diluted earnings per share within the first year of ownership. (investors.semtech.com) CEO Hong Hou said the HieFo assets are aimed at supporting a move to 1.6T and 3.2T data‑center architectures and at shoring up U.S. optical module supply chains. (morningstar.com) Market reaction included a lift from analysts: Craig‑Hallum raised its price target on Semtech to $105 from $80 while maintaining a Buy rating, citing expectations for accelerating data‑center revenues. (investing.com)
