Benchmark raised its price target for Semtech (NASDAQ:SMTC) to $230 from $120. The firm maintained its Buy rating following strong first-quarter fiscal 2027 results. Analysts cited a faster-than-anticipated growth ramp in the data center business. The artificial intelligence boom is driving this segment's expansion.
Semtech reported an adjusted EPS of $0.51, beating market forecasts. Quarterly revenue reached $291 million, exceeding analyst expectations. Management reported robust bookings and backlog for the period.
The company projects sequential data center revenue to grow by 35% next quarter. UBS, Craig-Hallum, and Needham also increased their price targets following the report.