On September 8, Semtech rose 5.1% in regular trading, trading at $155.16 per share, with turnover of approximately $77.49 million, as the market continued to price in the company's strong fiscal Q2 results and robust data center growth trajectory.

Semtech reported fiscal Q2 adjusted EPS of $0.71, beating the consensus estimate of $0.57 by roughly 25%, while revenue of $341.9 million topped the $328.6 million estimate. Fiscal Q3 revenue guidance of $405 million to $415 million significantly exceeded UBS's prior estimate of $376 million, with gross margin expectations running 230 basis points ahead of forecasts. Data center revenue surged 91% year-over-year in Q2, with Q3 projected to grow another 45% sequentially and 160% year-over-year. UBS maintained a Buy rating and raised its price target to $230 from $225, forecasting data center revenue could reach a $200 million quarterly run-rate by fiscal Q1 2028.

Additionally, the company's agreement to divest its cellular module business to Compal Electronics for $62 million is expected to improve gross margins by approximately 500 basis points, sharpening the company's focus on high-growth data center and IoT connectivity markets driven by AI infrastructure demand.

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