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Semtech (SMTC) Unites With IQnexus, Boosts LoRa Technology

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Semtech Corporation (SMTC - Free Report) has been persistently making strong efforts to bolster the LoRa technology. Robust LoRa solutions are helping the company in gaining customer momentum.

Recently, Semtech collaborated with IQnexus, wherein the latter incorporated Semtech’s LoRa devices and LoRaWAN standard into its Indoor Air (IAQ) and Environment Quality (IEQ) sensors. This serves as a testament to the abovementioned fact.

Using the LoRa technology, IQnexus has well equipped its indoor sensor for monitoring a building’s air quality in real time.

Also, the LoRaWAN standard has bolstered connectivity capabilities and enables the IAQ sensor to follow standard protocols to building automation/energy management system.

The latest integration shows the efficiency and reliability of Semtech’s LoRa devices and LoRaWAN solution.

Further, it has added strength to Semtech’s client base, which is expected to contribute well to the company’s top-line growth in the upcoming period.

Recent Collaborations for LoRa Technology

Semtech has been signing contracts with a number of companies due to its cost-effective LoRa technology, which is suitable for various applications.

Apart from the recent integration, Semtech’s LoRaWAN standard was selected by eLichens last month. eLichens will use LoRaWAN for avolta gas sensor to detect gas leak and prevent accidents related to gas leak in cities.

The company also partnered with the national postal service of Switzerland, Swiss Post. Semtech’s LoRa devices and LoRaWAN standard will be integrated into Swiss Post “Order Pens” for delivering postal service to Swiss citizens and businesses.

Semtech joined forces with DIC to integrate its LoRaWAN standard with the latter’s HatteTotte sensors. The integration permits long-distance communication and less power consumption.

In addition, the company’s LoRa devices were incorporated by LDT, a South Korean company, into its smart fire prevention system.

Further, Semtech’s LoRa Edge asset management platform will be used by SkyLab to make a small form-factor prototyping board for both indoor and outdoor asset management applications.

LoRa Portfolio Strength Boosts Prospects

Semtech’s growing customer momentum is attributed to its growing initiatives toward bolstering LoRa solutions.

Early this year, the company launched the LoRa Core portfolio that provides LoRaWAN network coverage to various vertical industries like asset tracking, building, home, agriculture, metering and factory automation.

Semtech’s LoRaCore cell Reference Design, which enables LoRaWAN gateways to simultaneously receive and transmit data, remains noteworthy.

We believe these moves poise Semtech well to expand presence in the booming LoRa and LoRaWAN devices market.

This market is witnessing significant growth due to growing use of Internet of Things in various sectors like industrial, commercial and consumer. Increasing adoption of advanced technologies including machine learning and artificial intelligence is driving this market further.

A report by IndustryARC indicates that the market is likely to hit $6.2 billion by 2026, witnessing a CAGR of 36.5% during the forecast period of 2021-2026.

Thus, with the recent move, Semtech remains well positioned to capitalize on the above-mentioned prospects.

Zacks Rank & Other Stocks to Consider

Currently, Semtech carries a Zacks Rank #2 (Buy).

Other similar-ranked stocks in the broader technology sector include Advanced Micro Devices (AMD - Free Report) , Digital Turbine (APPS - Free Report) and ON Semiconductors (ON - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rates for Advanced Micro Devices, Digital Turbine and ON Semiconductors are currently projected at 44%, 50% and 52.3%, respectively.

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