BMO Capital initiated coverage of Semtech Corporation with an Outperform rating.

The firm established a $155 price target for the stock.

Analysts expect Semtech to gain networking market share as hyperscalers expand AI infrastructure.

BlackRock Inc. disclosed a new ownership position in the company during the second quarter.

The asset manager purchased approximately 9.75 million shares.

This investment is valued at roughly $1.58 billion.

BlackRock now holds a 10.47% ownership stake in the semiconductor manufacturer.