Semtech Corporation (SMTC Quick QuoteSMTC - Free Report) is consistently gaining customer momentum on the back of its robust LoRa technology.

The company recently announced that the LoRaWAN standard was leveraged by GTI for showing a new Natural Gas Smart Safety Shutoff System  at the 2021 AGA Operations Conference Exhibition in Florida. This is a testament to the above-mentioned fact.

With the Natural Gas Smart Safety Shutoff System, GTI intended to let everyone know about preventing gas accidents with the help of IoT–based solutions.

The Natural Gas Smart Safety Shutoff System that includes a remote methane detector, a smart valve and smart meter, utilizes LoRaWAN technology to detect methane and accordingly close off  the valve and meter to avoid any accident related to gas.

The recent move highlights the efficiency and reliability of Semtech’s LoRaWAN solution.

Further, it added strength to Semtech’s client base, which is expected to contribute well to the company’s top-line growth in the upcoming period.
Recent Partnerships for LoRa Technology
Semtech has been signing contracts with a number of companies owing to its cost-effective LoRa technology, which is suitable for various applications. The recent integration is a step in this direction.

Apart from the latest collaboration, the company tied up with the national postal service of Switzerland Swiss Post for integrating its LoRa devices and LoRaWAN standard into Swiss Post “Order Pens” for delivering postal service to Swiss citizens and businesses.

In addition, the LoRaWAN standard was integrated into Cloud Energy’s wireless solar power system.

The company’s LoRa devices and LoRaWAN standard were also incorporated by IQnexus for its Indoor Air and Environment Quality sensors.

Additionally, its LoRaWAN standard was selected by eLichens for a volta gas sensor to detect gas leaks and check accidents related to the same issue in cities.

The recent integrations are expected to contribute significantly to revenues of the Wireless and Sensing segment in the near term.

This particular segment grew integral to Semtech’s overall business. It generated 34% total revenues in second-quarter fiscal 2022. Also, revenues from the same surged 61.2% year over year.
LoRa Portfolio: Key Strength
Semtech’s growing customer momentum is attributed to its increasing initiatives toward bolstering LoRa solutions.

In late April, it added a product named LoRa Corecell  Reference Design to its LoRa Core portfolio for full duplex gateway applications in the U.S. 902-928MHz ISM band. The new solution enables LoRaWAN gateways to simultaneously receive and transmit data.

Earlier this year, the company introduced the LoRa Core portfolio, consisting of a new chipset. The portfolio offers LoRaWAN network coverage to various vertical industries including asset tracking, building, home, agriculture, metering and factory automation.

We believe, these efforts poise Semtech well in penetrating the booming LoRa and LoRaWAN devices market, which is likely to hit $6.2 billion by 2026, witnessing a CAGR of 36.5% between 2021 and 2026, per an IndustryARC report.
Zacks Rank Other Stocks to Consider
Currently, Semtech sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks in the broader technology sector are Nikon (NINOY Quick QuoteNINOY - Free Report) , Paycom Software (PAYC Quick QuotePAYC - Free Report) and Avnet (AVT Quick QuoteAVT - Free Report) , all currently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Nikon, Paycom and Avnet is currently projected at 51.6%, 25% and 25.4%, respectively.

Source: Zacks.com

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