Semtech Corporation (SMTC) reported strong third-quarter fiscal year 2025 results, significantly exceeding expectations. The company achieved net sales of $236.8 million, marking a 10% sequential increase, and recorded a non-GAAP gross margin of 52.4%, up 200 basis points sequentially. Data center sales reached a record $43.1 million, up 58% quarter-over-quarter and 78% year-over-year, driven by growing demand for AI-related products. Despite a net loss of $7.6 million, adjusted earnings per share stood at $0.26. The company's CopperEdge solutions also gained traction, contributing to its robust performance. Semtech's stock surged 18% pre-market following the earnings announcement, with a post-market price of $60.50.