Semtech (NASDAQ: SMTC) has emerged as a critical AI play for several reasons. At face value, its data center products are crucial for connectivity and networking; they unlock the power of hardware, efficiently linking servers, large clusters, racks, and data centers. The bigger picture is more impressive. Not only is Semtech well-positioned for data center growth, but it is also well-positioned for telecommunications and the Internet of Things (IoT), which enable the application of AI at the edge.
The company's recent earnings report showed that business is good across product lines, particularly in data centers, a trend expected to accelerate.
