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Semtech (SMTC) Boosts LoRa Technology Via Recent Partnerships

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Semtech Corporation (SMTC - Free Report) has joined forces with Elvexys and Oiken, wherein both the companies will leverage SMTC’s LoRa technology.

The company’s LoRa devices and LoRaWAN standard are being used by Elvexys for delivering real-time data to Oiken’s supervision control room in case of power grid failure.

Further, the LoRaWAN standard can be seamlessly integrated into Oiken’s supervisory control and data acquisition system and deployed in the field. With the help of LoRaWAN connectivity, Oiken can monitor power grids efficiently.

Thus, the recent move highlights the efficiency and reliability of Semtech’s LoRa devices and LoRaWAN solution.

Further, the move has added strength to the company’s customer base. This is expected to contribute to its top-line growth in the upcoming period.

Recent Collaborations for LoRa Technology

Semtech has won quite a few deals with several companies in recent times, owing to the cost-effective LoRa technology. The recent partnership is a step forward in this direction.

Apart from the latest collaboration, the company tied up with the national postal service of Switzerland Swiss Post for integrating LoRa devices and the LoRaWAN standard into Swiss Post “Order Pens” for delivering postal service to Swiss citizens and businesses.

Additionally, its LoRaWAN standard was selected by eLichensfor avolta gas sensor to detect gas leaks and check accidents related to the same in cities.

The company’s LoRa devices and LoRaWAN standard were also incorporated by IQnexus for its Indoor Air and Environment Quality sensors.

The recent integrations are expected to contribute significantly to revenues of the Wireless and Sensing segment in the near term.

This particular segment has become integral to Semtech’s overall business. It generated 32% of the total revenues for third-quarter fiscal 2022. Also, revenues from the same surged 23% year over year.

LoRa Portfolio Strength

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

Recently, Semtech unveiled the LoRa Developer Portal to help developers quickly develop IoT devices connected with the LoRaWAN standard.

In addition, it introduced the LoRa Core portfolio, consisting of a new chipset. The portfolio offers LoRaWAN network coverage to various vertical industries including asset tracking, building, home, agriculture, metering and factory automation.

Further, the company added a product named LoRaCorecell Reference Design to its LoRa Core portfolio for full-duplex gateway applications in the U.S. 902-928MHz ISM band. The new solution enables LoRaWAN gateways to simultaneously receive and transmit data.

These efforts are helping Semtech to expand its presence in the growing LoRa and LoRaWAN devices market, which is expected to hit $6.2 billion by 2026, witnessing a CAGR of 36.5% between 2021 and 2026, per an Industry ARC report.

Zacks Rank & Other Stocks to Consider

Currently, Semtech sports a Zacks Rank #1 (Strong Buy).

Investors interested in the broader technology sector can also consider stocks like Advanced Micro Devices (AMD - Free Report) , Mimecast Limited (MIME - Free Report) and TaskUs (TASK - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Micro Devices has gained 50.6% on a year-to-date basis. The long-term earnings growth rate for the stock is currently projected at 46.2%.

Mimecast has gained 39.3% on a year-to-date basis. The long-term earnings growth rate for the stock is currently projected at 35%.

TaskUs has gained 38.2% on a year-to-date basis. The long-term earnings growth rate for the stock is currently projected at 32.8%.