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Semtech (SMTC) Boosts Its IoT Reach With New Transceiver

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Semtech (SMTC - Free Report) introduced a transceiver, namely LoRa Connect LR1121, in a bid to bolster its LoRa portfolio.

The new transceiver features low power consumption, LoRaWAN standard as well as offers global connectivity. Further, it enables users to use low-power chips anywhere as it offers multi-band versatility.

Also, the device offers LoRaWAN connectivity for terrestrial low power wide area networks.

Additionally, LR1121 lets the module makers use a single hardware design for a wide range of applications as it supports the current LoRa Edge devices.

Furthermore, it is compatible with integrated passive devices, which would help the users minimize design iterations and reduce time to market.

We note that the new transceiver is ideal for use in Internet of Things (IoT) end points.

Growth Prospects

The latest move of the company positions it well to capitalize on the growth prospects present in the IoT market.

Per a report from The Insight Partners, the underlined market is expected to hit $2.3 trillion by 2028 at a CAGR of 29.4% between 2022 and 2028.

A report from Mordor Intelligence states that the IoT market is expected to witness a CAGR of 10.5% between 2022 and 2027.

We believe that Semtech’s growing footprint in this promising market will help it in winning investors’ confidence in the days ahead.

Coming to the price performance, SMTC has declined 55.5% in the past year against the industry’s rise of 7.3%.

Portfolio Strength: Key Catalyst

The latest move is in sync with the company’s growing efforts toward expanding its portfolio.

Apart from the latest addition to the LoRa Portfolio, SMTC recently collaborated with The Things Industries for IoT solutions, which will combine LoRaWAN and cellular solutions.

These solutions are well-equipped to make end-to-end connectivity integration easier, which will accelerate IoT deployments.

Further, Semtech announced the production availability of two new solutions for transimpedance amplifiers, namely FiberEdge GN1300 and GN1400, which provide optimized performance for the PIN receiver optical sub-assembly (ROSA) and APD ROSA applications.

Moreover, both GN1300 and GN1400 are ideal for optical module solutions used in 5G wireless infrastructure as they deliver high-performance signal integrity.

We believe that an expanding portfolio is likely to continue helping the company in bolstering its customer base.

Recently, SMTC’s LoRa devices and LoRaWAN standard were utilized by Sindcon (Singapore) IoT Technology and IoT Kreasi Indonesia in battery-powered smart water and electricity meters.

LoRa devices and LoRaWAN standard were selected by Nordic Propeye and were incorporated into the latter’s new HVAC optimization solution.

We note that expanding clientele on the back of robust portfolio strength is expected to aid the company’s financial performance in the near term.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Salesforce (CRM - Free Report) and Analog Devices (ADI - Free Report) . While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks shares have gained 23.8% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%.

Salesforce shares have lost 11% in the past year. CRM’s long-term earnings growth rate is currently projected at 16.75%.

Analog Devices shares have gained 15.4% in the past year. The long-term earnings growth rate for ADI is currently projected at 12.25%.

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