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Semtech (SMTC) Upgrades LPWA Modules With Skylo Partnership

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Semtech Corporation (SMTC - Free Report) is leaving no stone unturned to enhance the capabilities of its robust Low Power Wide Area (LPWA) modules. This, in turn, will enable the company to capitalize on growth opportunities present in the global LPWA network market. Per the Global Market Insights report, the LPWA network market is expected to grow at a CAGR of 50% between 2023 and 2032.

In this regard, the company partnered with Skylo to upgrade its HL LPWA series modules, namely HL7810 and HL7812 modules, by integrating Skylo’s Non-Terrestrial Network (NTN) capabilities.

These NTN-supported LPWA modules provide global connectivity through satellite networks, ensuring continuous connection even in isolated regions.

Further, the HL modules use NB-IoT technology to offer customers with satellite connectivity and improved global communication reliability by addressing limitations of conventional cellular networks.

Additionally, it supports terrestrial LPWA networks, offering a single point of access to device and SIM lifecycle management to ensure comprehensive connectivity solutions.

Semtech is expected to gain solid traction across shipping and emergency management industries on the back of its latest move.

Strengthening IoT Portfolio

The latest move is in sync with Semtech’s growing efforts toward strengthening its IoT devices portfolio, which remains a key growth driver for the company. Its shares have gained 25.5% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s growth of 11.4%.

Earlier, the company joined forces with Oxit, an Internet of Things (IoT) services company, to boost customers' connectivity choices with multiple LoRa networks like Amazon’s (AMZN - Free Report) AWS IoT Core.

With this collaboration, Semtech aims to help device manufacturers build a single device that can connect to both AWS IoT Core for Amazon Sidewalk and AWS IoT Core for LoRaWAN networks, with the help of OxTech Multi-Connectivity Module.

This apart, Semtech partnered with Unabiz, integrating the LoRaWAN and Sigfox 0G technologies. This collaboration allows customers to create global IoT solutions for asset management, particularly in the supply chain and logistics industries.

Additionally, Semtech’s expansion of its PerSe product portfolio with the launch of a new purpose-built integrated circuit, enabling 5G mobile devices to implement advanced radio frequency control, remains noteworthy.

Wrapping Up

All the above-mentioned endeavors will enable the company to capitalize on growth opportunities present in the global wireless connectivity market.

Per a MarketsandMarkets report, the global wireless connectivity market is expected to reach $199.3 billion by 2027, exhibiting a CAGR of 12.8% between 2023 and 2027.

Moreover, a strengthening IoT devices portfolio is expected to enhance the company’s overall product portfolio. This, in turn, will likely aid SMTC’s overall financial performance in the near term.

The Zacks Consensus Estimate for 2024 total revenues stands at $867.07 billion, indicating year-over-year growth of 14.6%.

The consensus mark for 2024 earnings is pegged at 55 cents per share, implying a significant jump from its year-ago quarter’s reported figure of 14 cents per share.

Zacks Rank & Stocks to Consider

Currently, Semtech carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Airbnb (ABNB - Free Report) and BlackLine (BL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Airbnb have gained 21.2% in the year-to-date period. The long-term earnings growth rate for ABNB is 16.85%.

Shares of BlackLine have risen 3.4% in the year-to-date period. The long-term earnings growth rate for BL is currently projected at 5.50%.


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