10 Best Hot Stocks to Buy for June

8. Semtech Corporation (NASDAQ:SMTC)

Stock Upside Potential: 29%

Year to Date Gain: 110.99%

Number of Hedge Fund Holders: 56

Semtech Corporation (NASDAQ:SMTC) is one of the best hot stocks to buy for June. On May 27, UBS reiterated its Buy rating on Semtech Corp. (NASDAQ:SMTC) and raised its price target to $225 from $165. The price target hike is in response to the company delivering impressive first-quarter results amid strong 800G optical demand.

The company delivered record first-quarter results, driven by expanding design wins across its data center and LoRa businesses. The company expects data center growth to accelerate throughout the year as FiberEdge and CopperEdge 1.6T revenues layer onto the strong growth base. Revenues in the quarter were up 16% year over year to a record $291 million, while non-GAAP adjusted diluted EPS increased 34% to $0.51 per share.

UBS expects the growth momentum to persist throughout the year, driven by the 1.6T Optical ecosystem. Additional active copper cable wins and expanding product set at the HieFo fab are also expected to drive incremental growth in 2027 and 2028.

Semtech Corporation (NASDAQ:SMTC) is a global technology company that designs, develops, and supplies high-performance semiconductors, Internet of Things (IoT) systems, and cloud connectivity services. It operates under a “fabless” model, focusing solely on research, design, and intellectual property (IP), while outsourcing chip manufacturing to third-party foundries.

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