11 Worst Performing Data Center Stocks in 2025

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9. Semtech Corp. (NASDAQ:SMTC)

YTD Return: 1.8%

Number of Hedge Fund Holders: 37

Semtech Corp. (NASDAQ:SMTC) is one of the worst-performing data center stocks in 2025. Although the company’s stock is up around 1.8% year-to-date, it has underperformed the broader market and its peers in the data center industry, which have seen an upbeat performance.

That said, on September 28, Robert W. Baird analyst Tristan Gerra reaffirmed a Buy rating on the stock with a $70 price target. His positive view is based on several areas of growth the company is pursuing.

Semtech’s LoRa segment is expected to grow more than 20% in 2026, helped by new uses in security and retail. These applications could open up new markets and expand adoption. According to the analyst, the company is also making progress in AI infrastructure, which has become another key growth driver.

The analyst also believes that among the company’s opportunities, an important one lies in Semtech’s partnerships with large U.S. cloud providers on linear pluggable optics (LPOs). These projects offer higher pricing potential and could boost margins. Additionally, a recent design win with AEC and the chance to lead in ACC opportunities strengthen its long-term outlook.

Semtech Corp. (NASDAQ:SMTC) designs analog and mixed-signal semiconductors used in data centers, industrial automation, and IoT applications.

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