This Semiconductor Stock Is Nonetheless 20% Beneath Its Extreme nevertheless One Fund Is Betting Virtually $50 Million on Shares

• Boston-based Portolan Capital Administration added 289,844 shares of Semtech inside the third quarter.

• The final place price elevated by $30.68 million from the sooner interval.

• As of September 30, Portolan reported holding 668,862 shares of Semtech valued at $47.79 million.

• These 10 stocks could mint the next wave of millionaires ›

Boston-based Portolan Capital Administration disclosed a purchase order of 289,844 shares of Semtech Firm (NASDAQ:SMTC), elevating its stake by an estimated $30.68 million, in step with a November 13 SEC submitting.

In step with a filing with the Securities and Exchange Commission (SEC), Portolan Capital Administration elevated its place in Semtech Firm (NASDAQ:SMTC) by shopping for 289,844 further shares over the sooner quarter. The estimated price of the place rose to $47.8 million, with the model new stake representing 2.6% of the fund’s reported U.S. equity property as of September 30. The fund reported 119 full positions.

Prime 5 holdings after the quarter:

• NYSE:MOD: $85.6 million (4.6% of AUM)

• NASDAQ:TTMI: $68.5 million (3.7% of AUM)

• NYSE:ELF: $64.6 million (3.5% of AUM)

• NYSE:DBRG: $64 million (3.5% of AUM)

• NYSE:CLS: $62 million (3.4% of AUM)

As of Friday, Semtech shares had been priced at $72.97, up about 15% over the earlier 12 months and solely barely underperforming the S&P 500’s roughly 16.5% purchase within the similar interval.

• Semtech presents analog and mixed-signal semiconductor merchandise, along with signal integrity, security, wi-fi, sensing, and power administration choices.

• The company generates earnings by designing, manufacturing, and selling built-in circuits and superior algorithms on to OEMs, suppliers, and through distribution companions globally.

• It serves enterprise computing, communications, industrial, and shopper electronics markets, with a diversified worldwide purchaser base.

Semtech Firm is a primary provider of analog and mixed-signal semiconductor merchandise, leveraging a broad experience portfolio to cope with high-growth infrastructure and industrial features. The company’s method emphasizes innovation in signal integrity and power administration, supporting mission-critical strategies for worldwide OEMs. Semtech’s aggressive profit is constructed on its specialised product decisions and established relationships all through enterprise and industrial end-markets.

At shut to a few% of whole property, the rising Semtech place is critical with out being aggressive, significantly in distinction with greater bets in shopper, industrial, and infrastructure names that anchor the rest of the e book. In several phrases, this seems to be like like a conviction add, not a swing-for-the-fences commerce.

The fundamentals help make clear why. Semtech just posted a transparent quarter, with file earnings of $267 million, up 13% 12 months over 12 months, and adjusted EPS of $0.48, nearly double the place it stood a 12 months up to now. Within the meantime, margins are quietly doing the heavy lifting. Adjusted working margin expanded to twenty.6% from 18.3%, whereas free cash circulation climbed to $44.6 million for the quarter. Administration moreover guided to a unique sequential earnings improve subsequent quarter, suggesting the restoration is broadening considerably than stalling.

For long-term patrons, this seems to be like like a guess that common margin enlargement, disciplined R&D, and publicity to infrastructure-driven demand can compound over time, even when the stock under no circumstances regains its earlier hype plenty of.

AUM: Belongings Under Administration – Your complete market price of investments a fund or supervisor oversees.
Equity AUM: The portion of property beneath administration invested significantly in shares or equity securities.
Trailing twelve months (TTM): The 12-month interval ending with the latest quarterly report.
Place: The amount of a selected security or asset held in a portfolio.
Stake: The possession curiosity or share held in a company by an investor or fund.
Quarter: A 3-month interval utilized by companies for financial reporting and analysis.
CAGR: Compound Annual Improvement Cost – The suggest annual improvement worth of an funding over a specified interval longer than one 12 months.
OEM: Genuine Gear Producer – A company that produces components or instruments utilized in a single different agency’s end merchandise.
Blended-signal semiconductor: An built-in circuit that processes every analog and digital indicators.
Signal integrity: The usual and reliability {{of electrical}} indicators as they journey by the use of circuits or strategies.
Distribution companions: Third-party companies that help promote or ship merchandise to complete shoppers.
Fund holdings: The individual securities or property owned by an funding fund.

Ever actually really feel equivalent to you missed the boat in purchasing for primarily essentially the most worthwhile shares? Then you definately definately’ll want to hear this.

On unusual occasions, our skilled workers of analysts factors a “Double Down” stock suggestion for companies that they suppose are about to pop. Must you’re fearful you’ve already missed your chance to invest, now’s the right time to buy sooner than it’s too late. And the numbers converse for themselves:

• Nvidia: must you invested $1,000 as soon as we doubled down in 2009, you’d have $469,438!*

• Apple: must you invested $1,000 as soon as we doubled down in 2008, you’d have $52,063!*

• Netflix: must you invested $1,000 as soon as we doubled down in 2004, you’d have $509,039!*

Correct now, we’re issuing “Double Down” alerts for 3 unimaginable companies, obtainable whilst you be part of Stock Advisor, and there may be in all probability not one different chance like this anytime shortly.

See the 3 stocks »

*Stock Advisor returns as of December 15, 2025

Jonathan Ponciano has no place in any of the shares talked about. The Motley Fool has positions in and recommends Celestica, Modine Manufacturing, and e.l.f. Magnificence. The Motley Fool has a disclosure policy.

This Semiconductor Stock Is Still 20% Below Its High but One Fund Is Betting Nearly $50 Million on Shares was initially printed by The Motley Fool