Semtech Holder Sues Over Forecast After Worst Rout in 30 Years

Aug. 13, 2025, 7:46 PM UTC

Semtech Corp. management misled investors about prospects for active copper cable products, prompting a record stock drop after the semiconductor supplier revealed a disappointing 2026 sales forecast, a shareholder lawsuit said.

Semtech said in a Feb. 7 financial filing that it expected its 2026 CopperEdge product net sales to be lower than its prior floor-case estimate of $50 million due to rack architectural changes. Share prices slipped 31% the next session in its greatest single-day fall since 1993, according to data compiled by Bloomberg.

The company’s filing said the revised estimates came after feedback from a service rack customer—purportedly NVIDIA ...

Learn more about Bloomberg Law or Log In to keep reading:

See Breaking News in Context

Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.

Already a subscriber?

Log in to keep reading or access research tools and resources.