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Will Semtech's SGP.32 eSIM Launch Expand Its Cellular IoT Business?
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Key Takeaways
Semtech launched SGP.32 multi-profile eSIM to simplify connectivity across global IoT deployments.
AirVantage enables remote carrier switching and bulk provisioning without SIM replacement.
PowerSave eSIM optimizes network connections and data transfers for battery-powered devices.
Semtech Corporation (SMTC - Free Report) is expanding its cellular Internet of Things (IoT) portfolio with the launch of SGP.32 multi-profile eSIM under its Smart Connectivity Premium offering. The new solution allows customers to use a single SIM SKU with multiple mobile network operator profiles across different regions. Managed through Semtech's AirVantage eSIM platform, the offering is designed to simplify connectivity for businesses deploying IoT devices globally. It also addresses challenges such as dependence on a single carrier, permanent roaming restrictions and the need to replace SIM cards when network providers change.
The new offering is based on the GSMA's SGP.32 standard, which supports remote provisioning and management of eSIM profiles. Through AirVantage, customers can add local carrier profiles, manage subscriptions and switch between networks without physically replacing SIM cards. The platform also supports bulk provisioning and allows businesses to connect their own systems through application programming interfaces. This gives customers greater flexibility in managing large IoT deployments across different countries and networks.
Semtech's solution can serve several IoT applications. Fixed devices, such as smart meters and video surveillance systems, can use multiple carrier profiles to address roaming restrictions and maintain connectivity through network failover. Mobile assets can also benefit from access to different carriers across regions, improving network coverage and reliability. Semtech is also offering a PowerSave eSIM designed for battery-powered devices. It uses a dual-profile setup to optimize network connection time and support the transfer of critical data while preserving battery life.
The GSMA's SGP.32 standard is expected to make adoption easier by simplifying remote provisioning and profile management. As global IoT deployments expand, Smart Connectivity Premium could help Semtech attract more enterprise customers seeking flexible, reliable and easier-to-manage connectivity solutions and strengthen its position in cellular IoT connectivity. The Zacks Consensus Estimate for SMTC’s fiscal 2027 and 2028 revenues indicates year-over-year growth of 46.2% and 33.8%, respectively.
How Competitors Fare Against SMTC
Semtech faces competition from Digi International (DGII - Free Report) and Cisco Systems (CSCO - Free Report) in the global IoT connectivity market.
Digi International offers SGP.32-compatible eSIMs that support remote carrier switching and profile management through its Digi Remote Manager platform. This allows customers to manage connectivity across distributed IoT devices without physically replacing SIM cards. In the third quarter of fiscal 2026, the company reported record revenues of $139 million, up 29% year over year. DIGI attributed its growth to contributions across products, services and solutions, supported by higher product volumes and strong customer demand. Its remote management capabilities and focus on connected devices strengthen its position in the IoT connectivity market.
Cisco Systems offers an eSIM Orchestrator through its IoT Control Center, which supports the SGP.32 standard and enables customers to remotely download, activate and manage eSIM profiles in bulk. In the fourth quarter of fiscal 2026, orders for its industrial IoT portfolio grew at a double-digit rate for the ninth consecutive quarter, driven by deployments in manufacturing, utilities and data center facilities. CSCO's broader IoT and networking portfolio, combined with its eSIM orchestration capabilities, gives it an opportunity to serve businesses looking to manage connected devices across multiple locations.
SMTC’s Price Performance, Valuation & Estimates
Shares of SMTC have jumped 58% in the year-to-date period compared with the Zacks Semiconductor - Analog and Mixed industry’s return of 25.3%.
SMTC YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SMTC trades at a forward price-to-sales ratio of 5.09, lower than the industry’s average of 6.78.
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 30 days, indicating a 113.5% increase from the previous year.
View the Zacks #1 Rank List
Image: Bigstock
Will Semtech's SGP.32 eSIM Launch Expand Its Cellular IoT Business?
Key Takeaways
Semtech Corporation (SMTC - Free Report) is expanding its cellular Internet of Things (IoT) portfolio with the launch of SGP.32 multi-profile eSIM under its Smart Connectivity Premium offering. The new solution allows customers to use a single SIM SKU with multiple mobile network operator profiles across different regions. Managed through Semtech's AirVantage eSIM platform, the offering is designed to simplify connectivity for businesses deploying IoT devices globally. It also addresses challenges such as dependence on a single carrier, permanent roaming restrictions and the need to replace SIM cards when network providers change.
The new offering is based on the GSMA's SGP.32 standard, which supports remote provisioning and management of eSIM profiles. Through AirVantage, customers can add local carrier profiles, manage subscriptions and switch between networks without physically replacing SIM cards. The platform also supports bulk provisioning and allows businesses to connect their own systems through application programming interfaces. This gives customers greater flexibility in managing large IoT deployments across different countries and networks.
Semtech's solution can serve several IoT applications. Fixed devices, such as smart meters and video surveillance systems, can use multiple carrier profiles to address roaming restrictions and maintain connectivity through network failover. Mobile assets can also benefit from access to different carriers across regions, improving network coverage and reliability. Semtech is also offering a PowerSave eSIM designed for battery-powered devices. It uses a dual-profile setup to optimize network connection time and support the transfer of critical data while preserving battery life.
The GSMA's SGP.32 standard is expected to make adoption easier by simplifying remote provisioning and profile management. As global IoT deployments expand, Smart Connectivity Premium could help Semtech attract more enterprise customers seeking flexible, reliable and easier-to-manage connectivity solutions and strengthen its position in cellular IoT connectivity. The Zacks Consensus Estimate for SMTC’s fiscal 2027 and 2028 revenues indicates year-over-year growth of 46.2% and 33.8%, respectively.
How Competitors Fare Against SMTC
Semtech faces competition from Digi International (DGII - Free Report) and Cisco Systems (CSCO - Free Report) in the global IoT connectivity market.
Digi International offers SGP.32-compatible eSIMs that support remote carrier switching and profile management through its Digi Remote Manager platform. This allows customers to manage connectivity across distributed IoT devices without physically replacing SIM cards. In the third quarter of fiscal 2026, the company reported record revenues of $139 million, up 29% year over year. DIGI attributed its growth to contributions across products, services and solutions, supported by higher product volumes and strong customer demand. Its remote management capabilities and focus on connected devices strengthen its position in the IoT connectivity market.
Cisco Systems offers an eSIM Orchestrator through its IoT Control Center, which supports the SGP.32 standard and enables customers to remotely download, activate and manage eSIM profiles in bulk. In the fourth quarter of fiscal 2026, orders for its industrial IoT portfolio grew at a double-digit rate for the ninth consecutive quarter, driven by deployments in manufacturing, utilities and data center facilities. CSCO's broader IoT and networking portfolio, combined with its eSIM orchestration capabilities, gives it an opportunity to serve businesses looking to manage connected devices across multiple locations.
SMTC’s Price Performance, Valuation & Estimates
Shares of SMTC have jumped 58% in the year-to-date period compared with the Zacks Semiconductor - Analog and Mixed industry’s return of 25.3%.
SMTC YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SMTC trades at a forward price-to-sales ratio of 5.09, lower than the industry’s average of 6.78.
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 30 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.