Semtech Corporation (SMTC) shares are soaring 5.41% in intraday trading, continuing the stock's impressive 18.2% climb since reporting strong fourth-quarter fiscal 2025 results on March 13. The semiconductor company's performance has outpaced both its industry peers and broader market indices, reflecting growing investor confidence in its growth prospects.

The company's Q4 performance was bolstered by robust growth in its data center business and increasing adoption of its IoT solutions. Semtech reported revenues of $251 million, up 30.1% year-over-year, and non-GAAP earnings of 40 cents per share, surpassing analyst estimates. The company's IoT segment, in particular, showed resilience with a 12.8% sequential growth, driven by the growing adoption of its LoRa technology and LoRaWAN standards in various industrial applications.

Looking ahead, Semtech's focus on high-demand markets such as AI and IoT, coupled with its strong product pipeline, positions the company for sustained growth. Analysts project revenue growth of 15.9% and 10.6% for fiscal 2026 and 2027, respectively, with significant EPS improvements expected. Despite near-term challenges in its CopperEdge business, investors appear to be betting on Semtech's long-term potential, particularly given its attractive valuation compared to industry peers.