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Semtech (SMTC) and Intel Form Alliance for LiDAR Technology

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Semtech Corporation (SMTC - Free Report) has joined forces with Intel (INTC - Free Report) in a bid to bolster its initiatives in Light Detection and Ranging (LiDAR) technology.

Notably, the company strives to build optical semiconductor platforms for LiDAR by incorporating its own optical semiconductor devices into Intel’s RealSense LiDAR Camera L515.

More precisely, the incorporation of Semtech’s advanced laser drivers and programmable transimpedance amplifiers (TIAs) into Intel’s L515 will deliver high-precision depth, with errors below 16mm at maximum operating range in the development of consumer LiDAR with high resolution.

In addition, with TIAs’ low input-referred-noise feature, L515 is capable enough to be a LiDAR system with high accuracy.

Notably, the latest collaboration is likely to aid Semtech in gaining strong footprint in the optical semiconductor space and solid momentum in LiDAR technology.

LiDAR Prospects

Huge investments are being made in the LiDAR market due to its increased usage in the development of advanced products.

According to the MarketsandMarkets report, the global LiDAR market is expected to hit $2.8 billion by 2025, witnessing a CAGR of 20.7% during the period of 2020-2025.

Further, a report from Allied Market Research indicates that this particular market is expected to hit $2.9 billion by 2027, registering a CAGR of 20.1% between 2020 and 2027.

Also, Reportlinker data reveals that the LiDAR market is anticipated to witness a CAGR of 29.6% between 2021 and 2026, and reach $7.4 billion by 2026.

We believe that Semtech’s strategic alliance with Intel and other endeavors in LiDAR will help it rapidly penetrate into this expanding market.

Semtech’s Optical Portfolio in Focus

Strong optical product offerings will continue to boost Semtech’s footprint in the promising market of LiDAR.

The company’s optical product portfolio comprises optical transceiver IC products ranging from 100Mbps to more than 100Gbps, which support key industry standards such as Fibre Channel, InfiniBand, Ethernet, Common Public Radio Interface and Passive Optical Network to name a few.

We believe that it remains well poised to gain strong momentum in various end markets on the back of robust optical portfolio.

Zacks Rank & Stocks to Consider

Currently, Semtech carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector include MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) and Microchip Technology Incorporated (MCHP - Free Report) . While MACOM sports a Zacks Rank #1 (Strong Buy), Microchip carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for MACOM and Microchip are currently projected at 37% and 15.3% respectively.

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