Nomura Smid Cap Core Fund on Semtech Corporation
Thesis
Semtech is positioned as a beneficiary of the expanding AI infrastructure buildout as investor attention broadens beyond the largest semiconductor companies. Its Active Copper Cable solutions remain important to data-center interconnect architectures, while its emerging Linear Pluggable Optics capability gives it exposure to the industry's gradual move toward optical connectivity. The fund believes copper and optical solutions will coexist across the data-center ecosystem rather than one fully displacing the other.
“Semtech's Active Copper Cable (ACC) solutions remain integral to datacenter interconnect architectures”
Key risks
- Mixed guidance and near-term demand visibility concerns in the connectivity solutions business