This Semiconductor Stock Is Still 20% Below Its High but One Fund Is Betting Nearly $50 Million on Shares

2 hours ago 6

Jonathan Ponciano, The Motley Fool

Sat, December 20, 2025 astatine 2:55 PM CST 5 min read

Boston-based Portolan Capital Management added 289,844 shares of Semtech successful the 3rd quarter.
The wide presumption worth accrued by $30.68 cardinal from the erstwhile period.
As of September 30, Portolan reported holding 668,862 shares of Semtech valued astatine $47.79 million.
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Boston-based Portolan Capital Management disclosed a bargain of 289,844 shares of Semtech Corporation (NASDAQ:SMTC), raising its involvement by an estimated $30.68 million, according to a November 13 SEC filing.

According to a filing with the Securities and Exchange Commission (SEC), Portolan Capital Management accrued its presumption successful Semtech Corporation (NASDAQ:SMTC) by acquiring 289,844 further shares implicit the erstwhile quarter. The estimated worth of the presumption roseate to $47.8 million, with the caller involvement representing 2.6% of the fund's reported U.S. equity assets arsenic of September 30. The money reported 119 full positions.

Top 5 holdings aft the quarter:

NYSE:MOD: $85.6 cardinal (4.6% of AUM)
NASDAQ:TTMI: $68.5 cardinal (3.7% of AUM)
NYSE:ELF: $64.6 cardinal (3.5% of AUM)
NYSE:DBRG: $64 cardinal (3.5% of AUM)
NYSE:CLS: $62 cardinal (3.4% of AUM)

As of Friday, Semtech shares were priced astatine $72.97, up astir 15% implicit the past twelvemonth and lone somewhat underperforming the S&P 500's astir 16.5% summation successful the aforesaid period.

Metric

Value

Revenue (TTM)	$1 billion
Net Income (TTM)	$28.6 million
Price (as of marketplace adjacent Friday)	$72.97
One-Year Price Change	15%

Semtech offers analog and mixed-signal semiconductor products, including awesome integrity, protection, wireless, sensing, and powerfulness absorption solutions.
The institution generates gross by designing, manufacturing, and selling integrated circuits and precocious algorithms straight to OEMs, suppliers, and done organisation partners globally.
It serves endeavor computing, communications, industrial, and user electronics markets, with a diversified planetary lawsuit base.

Semtech Corporation is simply a starring supplier of analog and mixed-signal semiconductor products, leveraging a wide exertion portfolio to code high-growth infrastructure and concern applications. The company’s strategy emphasizes innovation successful awesome integrity and powerfulness management, supporting mission-critical systems for planetary OEMs. Semtech’s competitory vantage is built connected its specialized merchandise offerings and established relationships crossed endeavor and concern end-markets.

At adjacent to 3% of wide assets, the increasing Semtech presumption is meaningful without being aggressive, particularly compared with larger bets successful consumer, industrial, and infrastructure names that anchor the remainder of the book. In different words, this looks similar a condemnation add, not a swing-for-the-fences trade.

The fundamentals assistance explicate why. Semtech conscionable posted a cleanable quarter, with grounds gross of $267 million, up 13% twelvemonth implicit year, and adjusted EPS of $0.48, astir treble wherever it stood a twelvemonth ago. Meanwhile, margins are softly doing the dense lifting. Adjusted operating borderline expanded to 20.6% from 18.3%, portion escaped currency travel climbed to $44.6 cardinal for the quarter. Management besides guided to different sequential gross summation adjacent quarter, suggesting the betterment is broadening alternatively than stalling.

For semipermanent investors, this looks similar a stake that dependable borderline expansion, disciplined R&D, and vulnerability to infrastructure-driven request tin compound implicit time, adjacent if the banal ne'er regains its aged hype multiple.