Nomura Small Cap Core Fund on Semtech Corporation

Semtech is positioned as a small-cap beneficiary of the continued AI infrastructure buildout. The fund highlights its Active Copper Cable solutions as integral to data-center interconnect architectures while its emerging Linear Pluggable Optics capability provides exposure to the industry's gradual shift toward optical connectivity. The team does not view copper and optical as mutually exclusive and expects both technologies to retain applications across the data-center ecosystem. The broader portfolio remains overweight semiconductors because hyperscaler spending on data centers, chips and power infrastructure is expected to persist for years.