Semtech Corporation's (SMTC) stock plunged 25.85% intraday on Monday, underperforming the broader market. The semiconductor company's shares took a hit after warning 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. These changes are believed to have negatively impacted the sales projections, leading to the disappointing outlook.

The warning from Semtech has raised concerns among investors about the company's ability to meet its growth targets, prompting a sell-off in its shares during Monday's trading session.