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Semtech Corporation ($SMTC) experienced a dramatic decline in its stock price, dropping over 33% on February 10, 2025, following a disappointing forecast for its CopperEdge products. The company announced that net sales from these products, which are integral to active copper cables used in Nvidia's ($NVDA) server racks, are expected to be lower than previously estimated due to changes in server rack architecture. This news led to a pre-market drop of 26.2% and further declines throughout the trading day. Analysts responded by cutting their price targets for Semtech, with B. Riley lowering its target from $85 to $68 while maintaining a Buy rating, citing erosion in near-term opportunities related to Nvidia. Baird also reduced its target from $80 to $60, reflecting a bearish sentiment in the market as the stock has fallen 41% in the past five days, although it remains above its 52-week low.
Semtech Corp $SMTC plummeted 33% today, still not at 52-week low. Baird slashed target from $80 to $60. #UOA showed heavy put buying when SMTC was at $54/share, now those puts are in the money. Smart money's bearish move paid off as stock drops 41% in 5 days Rebel's Edge 🏴☠️… https://t.co/EgBAel33rK
1) Shift to $NVDA NVL72 was obvious for many M's. '25 GB200 units also lower than expected M's ago with push to B200 and B300-series systems. $SMTC pre-announced lower ACC. -17%. "Rack architecture changes." Btw $MTSI reports have been useful. GS 2H '25 & '26 forecasts in ... https://t.co/z2f1jTnsFg https://t.co/AVyCSy5bZB
B. Riley cuts Semtech $SMTC Price Target to $68 from $85, maintains Buy rating Riley now recognizes Semtech's near-term Nvidia $NVDA server rack opportunities are "eroded," which it views as "disappointing." However, they do not believe AI-related revenue potential is erased… https://t.co/ng3YmRyQjM
