Shares of Semtech Corporation (SMTC) plummeted by a staggering 29.82% in intraday trading on Monday, significantly underperforming the broader market. The semiconductor company's stock took a beating after it warned about missing its sales outlook for fiscal 2026 due to changes in its product architecture.

According to the company's announcement, Semtech expects lower-than-anticipated sales in the next fiscal year as it implements rack-architecture changes to its products, specifically its CopperEdge active copper cable offerings. These changes are believed to have negatively impacted the sales projections for CopperEdge products, leading to a disappointing outlook.

Semtech slashed its fiscal 2026 net sales forecasts for its CopperEdge products from the previous estimate of $50 million, with no expected ramp-up over the course of the fiscal year due to the rack architecture changes. The warning has raised concerns among investors about the company's ability to meet its growth targets, prompting a massive sell-off in its shares during Monday's trading session.