Semtech Stock Edges Lower As Baird Trims Price Target On Slower Product Adoption, Nvidia GB200 Superchip Issues: Retail Stays Bearish

Baird cited issues with Nvidia’s GB200 superchip – there have been reports of system-level issues, apart from the initial ramp delay of up to two months.

Shares of Semtech Corp. (SMTC) edged lower by nearly 1% in Friday’s pre-market trade after analysts at Baird trimmed their price target on the stock, citing slower uptake of the chip supplier’s products.

Baird lowered the price target for Semtech’s stock to $60 from $80 – the company’s shares are currently hovering around $60. It maintained an ‘Outperform’ rating on stock.

Baird analysts noted that they have observed slower-than-expected uptake of Semtech’s active copper cables (ACC), which offer extended reach to allow for high-volume switch-to-server connections. The brokerage notes that it has seen muted ACC activity overall, too.

It also cited issues with Nvidia Corp.’s (NVDA) GB200 superchip – there have been reports of system-level issues, apart from the initial ramp delay of up to two months.

“ACC benchmarking activity has been muted in the past few months outside of Meta. ACCs and LPOs remain a medium-term opportunity for Semtech and are the basis for our Outperform rating; however, investors should brace for near-term turbulence,” the brokerage said in its note.

It observed that there could be more attractive entry points in the stock for investors in the future.

On Stocktwits, retail sentiment around the Semtech stock was in the ‘bearish’ (39/100) territory, while message volume hit an annual low of (12/100) at ‘extremely low’ levels.

Semtech’s share price has gained over 119% over the past six months and more than 205% over the past year.

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