Semtech initiated with a Buy at UBS

UBS initiated coverage of Semtech (SMTC) with a Buy rating and $85 price target which represents 17% upside. Semtech is an analog company making inroads into artificial intelligence data center networking thanks to a key content win for its CopperEdge product in Nvidia’s Blackwell platform, and Nvidia is “pushing hard” to ramp a similar fiber product later this year, the analyst tells investors in a research note. UBS says the company’s recent refinancing is not yet reflected in consensus and a possible portfolio rationalization “could be the impetus for the market to reconsider Semtech’s valuation.”