The emerging story from the industrial semiconductor market is that these companies are exiting a global inventory correction, and Semtech (NASDAQ: SMTC) is among the best positioned. Its results prove its market-leading position by resuming growth in Q3, at least a quarter sooner than others are expected to do, and the guidance compounds this.
The guidance is robust, forecasting sequential acceleration to 30% year-over-year (YoY) growth in Q4, but it may be cautious due to the trends. Improving demand in all end markets, including automotive, is driving the outlook and tailwinds have only begun to blow. The outlook for FOMC policy reduction has tempered from its peaks but remains favorable to global business activity in 2025.
