Morgan Stanley Raises Semtech Price Target to $195 Driven by 1.6T Optical Chip Growth

Morgan Stanley reported that Semtech's data center revenue reached a record $100 million in the second quarter, a 39% increase quarter-over-quarter, fueled by strong demand for 800G FiberEdge and faster-than-expected 1.6T FiberEdge certification. The firm raised its price target for Semtech from $175 to $195, maintaining a neutral rating. Projections for fiscal years 2027 and 2028 were revised upward, citing structural improvements in margins following the divestiture of the module business and the upcoming deployment of active copper cables (ACC) with majo