On September 11, Semtech rose 5.31% in regular trading, trading at approximately $167.79 per share, with turnover of $43.09 million. The rally was driven by continued momentum following the company's Q2 earnings report, which significantly exceeded market expectations.

Semtech posted Q2 adjusted EPS of $0.71, beating the consensus estimate of $0.57 by approximately 24.6%, representing a 73% year-over-year increase. Revenue came in at $341.9 million, reflecting 33% year-over-year growth. The company's Q3 revenue guidance of $405 million to $415 million far surpassed UBS's prior estimate of $376 million, while gross margin expectations exceeded projections by 230 basis points.

The data center segment was a standout performer, with revenue surging 91% year-over-year and projected to grow another 45% sequentially in Q3. UBS expects quarterly data center revenue could reach $200 million by fiscal Q1 2028. The firm maintained its Buy rating and raised its price target to $230 from $225. Additionally, Semtech has agreed to sell its cellular module business to Compal Electronics for $62 million, a move expected to improve gross margins by approximately 500 basis points.

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