New York, Feb 2, 2026, 12:52 EST — Regular session
- Shares of Semtech surged roughly 9%, approaching a new 52-week high
- Chip stocks bounce back as investors weigh a choppy macro environment
- Traders are watching for momentum into the close and any fresh updates from this week’s industry events
Shares of Semtech Corp surged 9.4% to $87.21 by midday Monday, hitting an intraday peak of $88.59—a new 52-week high. The stock opened at $78.74 and traded on volume just above its 30-day average.
The sharp move thrust the mid-cap chip stock back into focus as investors grappled with a volatile start to February, marked by swings in commodities and a packed earnings schedule for U.S. giants. Early trading showed mixed signals across broader markets, with risk appetite fluctuating amid ongoing macroeconomic news. (Reuters)
Semtech’s gains outstripped the broader semiconductor sector. The Nasdaq US Smart Semiconductor Index was last up roughly 3% on the day. (Nasdaq Global Index Watch)
Semtech produces signal integrity components used in optical and copper data communications. It also offers protection devices, wireless and sensing products, plus IoT systems and connectivity solutions, as outlined in its company profile. (Reuters)
Investors are betting that connectivity and edge hardware will keep growing despite uneven spending elsewhere. Semtech’s shares have bounced sharply both ways over the past year, and Monday’s surge takes the stock further into the upper reaches of its recent trading band.
Last week, the company unveiled two new AirLink 5G “RedCap” routers — a streamlined 5G variant targeting lower-cost, low-power setups. These routers boast sub-1 watt idle power consumption, designed for remote industrial and commercial IoT sites. “AirLink 5G RedCap routers change the game,” said Kinana Hussain in the release. Shobhit Srivastava, senior principal analyst at Omdia, noted that RedCap adoption is picking up pace. (Semtech)
RedCap, short for “reduced capability,” is a 5G standard aimed at devices that don’t require the full speed or complexity of standard 5G but demand longer support lifespans than older 4G equipment. For Semtech, it represents a strategic foothold in industrial connectivity, where rugged hardware and battery longevity trump headline speeds.
That said, sharp intraday jumps can go either way. If the wider chip rally loses steam or investors shift back to a cautious stance, Semtech’s rally may lose steam fast—especially since the stock is trading near its peak and momentum players are already heavily invested.
Traders will keep an eye on whether Semtech can maintain its breakout levels through the close. Attention will also focus on any new insights from management or partners during this week’s company presentations.
Semtech is set to attend DistribuTECH 2026 in San Diego from Feb. 2–5, per its events calendar. This will be a key moment for investors eager for updates on products and customer insights. (Semtech)
