Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTHabib Ur RehmanSun, June 14, 2026 at 9:28 PM GMT+2 2 min readSemtech Corporation (NASDAQ:SMTC) is one of the best AI networking stocks to buy according to analysts. The company gave investors a fresh AI infrastructure angle in mid-March when it launched a family of 224 Gbps per lane Transimpedance Amplifiers and Mach-Zehnder Modulator drivers for LRO, LPO, XPO, Near-Packaged Optics, and Co-Packaged Optics interconnect applications.The products are designed to enable 800G, 1.6T, and 3.2T transceivers and optical engines for AI/ML clusters, hyperscale data centers, and next-generation cloud infrastructure. That makes Semtech a direct participant in one of the most important bottlenecks in AI infrastructure: moving data faster and more efficiently between accelerators, switches, and optical links. The company also said its linear interconnect architecture can remove the power-intensive digital signal processor from optical modules while maintaining link integrity, addressing power, cooling, and cost pressures in AI data centers.Semtech (SMTC): 224G Optical Chips Strengthen Its Role in AI Data Center InterconnectsClose-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.The launch followed a stronger fiscal year. On March 16, Semtech reported fiscal 2026 record net sales of $1.05 billion, up 15% year over year, while non-GAAP adjusted diluted earnings per share rose to $1.71.Semtech Corporation (NASDAQ:SMTC) provides high-performance semiconductors for AI data center networking, IoT connectivity, and intelligent connected devices worldwide.While we acknowledge the potential of SMTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info