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Can Strong Momentum in LoRa Boost Semtech's Long-Term Growth?
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Key Takeaways
SMTC's LoRa sales hit a record $58 million in Q2 fiscal 2027, up 58% year over year.
SMTC expects LoRa revenues to grow 65% year over year in Q3 fiscal 2027, fueled by rising adoption.
SMTC's LoRa Gen 4 and LoRa Plus, plus Amazon Sidewalk expansion, support growth across key markets.
Semtech Corporation (SMTC - Free Report) is seeing strong growth in its LoRa business as demand increases across industrial, commercial and consumer applications. LoRa-enabled net sales reached a record $58 million in the second quarter of fiscal 2027, up 31% sequentially and 58% year over year. Growth reflects wider adoption of LoRa across different applications, including smart homes, security systems and industrial monitoring. Management expects the business to maintain its momentum, with LoRa revenues projected to grow about 15% sequentially and 65% year over year in the third quarter of fiscal 2027.
Semtech is expanding its LoRa portfolio to address more applications. Its LoRa Gen 4 platform supports higher data speeds while maintaining low power consumption and long-range connectivity. These features can support new uses in smart homes, security and industrial applications. For example, LoRa-enabled sensors can help monitor industrial equipment and support predictive maintenance. In public safety, the technology can also enable sensors to transmit audio for AI-based verification instead of sending simple alerts.
Amazon Sidewalk is another potential growth driver for Semtech’s LoRa business. Following Ring’s launch of a new range of LoRa-based sensors in the United States, Amazon Sidewalk is expanding internationally, starting with Canada and Mexico, while Europe, Australia and Japan are expected to follow. This expansion could help increase the use of LoRa-based devices in consumer applications through Amazon’s network. Meanwhile, LoRa Plus is gaining traction in smart home and security markets, broadening the company’s opportunities beyond traditional industrial and commercial use cases.
Strong momentum in LoRaWAN, LoRa Plus and Amazon Sidewalk can also support SMTC’s future growth. Management expects LoRa revenues to grow at a rate above its previous 20% benchmark, supported by demand across these applications. With record revenues, new use cases and expanding distribution through Amazon Sidewalk, LoRa could become an increasingly important contributor to Semtech’s overall growth.
How Competitors Fare Against SMTC
Semtech faces competition from Texas Instruments (TXN - Free Report) and NXP Semiconductors (NXPI - Free Report) across the broader industrial and Internet of Things (IoT) markets.
Texas Instruments offers Sub-1 GHz wireless microcontrollers and transceivers designed for applications such as smart meters, building automation and industrial sensors. These products provide long-range connectivity while using little power, making them an alternative for certain applications served by Semtech's LoRa technology. In the third quarter of 2026, TXN's revenues rose 28% year over year to $6.1 billion, while industrial revenues grew more than 40%. The company is expanding manufacturing capacity to support rising customer demand. These investments and its broad wireless product portfolio strengthen TXN's position in industrial and connected-device markets.
NXPI also offers low-power Sub-GHz wireless products for smart metering, home and building automation, asset tracking and industrial monitoring. Its OL2385 transceiver family supports multiple wireless protocols, including Sigfox and Wireless M-Bus, giving customers options for connected-device applications. NXPI's industrial and IoT business reported revenues of $755 million in the second quarter of 2026, up 38% year over year. Its newer processing products, including the i.MX, RT and MCX families, grew 40% year over year, reflecting strong demand for its industrial and IoT portfolio.
SMTC’s Price Performance, Valuation & Estimates
Shares of SMTC have jumped 92.2% in the year-to-date period compared with the Zacks Semiconductor - Analog and Mixed industry’s return of 38.4%.
SMTC YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SMTC trades at a forward price-to-sales ratio of 7.36, lower than the industry’s average of 7.94.
SMTC Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SMTC’s fiscal 2027 earnings is pegged at $3.65 per share, revised up by 4.9% over the past seven days, indicating a 113.5% increase from the previous year.
View the Zacks #1 Rank List
Image: Bigstock
Can Strong Momentum in LoRa Boost Semtech's Long-Term Growth?
Key Takeaways
Semtech Corporation (SMTC - Free Report) is seeing strong growth in its LoRa business as demand increases across industrial, commercial and consumer applications. LoRa-enabled net sales reached a record $58 million in the second quarter of fiscal 2027, up 31% sequentially and 58% year over year. Growth reflects wider adoption of LoRa across different applications, including smart homes, security systems and industrial monitoring. Management expects the business to maintain its momentum, with LoRa revenues projected to grow about 15% sequentially and 65% year over year in the third quarter of fiscal 2027.
Semtech is expanding its LoRa portfolio to address more applications. Its LoRa Gen 4 platform supports higher data speeds while maintaining low power consumption and long-range connectivity. These features can support new uses in smart homes, security and industrial applications. For example, LoRa-enabled sensors can help monitor industrial equipment and support predictive maintenance. In public safety, the technology can also enable sensors to transmit audio for AI-based verification instead of sending simple alerts.
Amazon Sidewalk is another potential growth driver for Semtech’s LoRa business. Following Ring’s launch of a new range of LoRa-based sensors in the United States, Amazon Sidewalk is expanding internationally, starting with Canada and Mexico, while Europe, Australia and Japan are expected to follow. This expansion could help increase the use of LoRa-based devices in consumer applications through Amazon’s network. Meanwhile, LoRa Plus is gaining traction in smart home and security markets, broadening the company’s opportunities beyond traditional industrial and commercial use cases.
Strong momentum in LoRaWAN, LoRa Plus and Amazon Sidewalk can also support SMTC’s future growth. Management expects LoRa revenues to grow at a rate above its previous 20% benchmark, supported by demand across these applications. With record revenues, new use cases and expanding distribution through Amazon Sidewalk, LoRa could become an increasingly important contributor to Semtech’s overall growth.
How Competitors Fare Against SMTC
Semtech faces competition from Texas Instruments (TXN - Free Report) and NXP Semiconductors (NXPI - Free Report) across the broader industrial and Internet of Things (IoT) markets.
Texas Instruments offers Sub-1 GHz wireless microcontrollers and transceivers designed for applications such as smart meters, building automation and industrial sensors. These products provide long-range connectivity while using little power, making them an alternative for certain applications served by Semtech's LoRa technology. In the third quarter of 2026, TXN's revenues rose 28% year over year to $6.1 billion, while industrial revenues grew more than 40%. The company is expanding manufacturing capacity to support rising customer demand. These investments and its broad wireless product portfolio strengthen TXN's position in industrial and connected-device markets.
NXPI also offers low-power Sub-GHz wireless products for smart metering, home and building automation, asset tracking and industrial monitoring. Its OL2385 transceiver family supports multiple wireless protocols, including Sigfox and Wireless M-Bus, giving customers options for connected-device applications. NXPI's industrial and IoT business reported revenues of $755 million in the second quarter of 2026, up 38% year over year. Its newer processing products, including the i.MX, RT and MCX families, grew 40% year over year, reflecting strong demand for its industrial and IoT portfolio.
SMTC’s Price Performance, Valuation & Estimates
Shares of SMTC have jumped 92.2% in the year-to-date period compared with the Zacks Semiconductor - Analog and Mixed industry’s return of 38.4%.
SMTC YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SMTC trades at a forward price-to-sales ratio of 7.36, lower than the industry’s average of 7.94.
SMTC Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SMTC’s fiscal 2027 earnings is pegged at $3.65 per share, revised up by 4.9% over the past seven days, indicating a 113.5% increase from the previous year.
Image Source: Zacks Investment Research
SMTC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.