Semtech Corporation (SMTC)

The first half is components that condition the signal in data centre optical links: the faster the exchange between servers, the harder it is to preserve pulse shape, and that requires specialised analogue design. Demand rose along with the build-out of computing capacity.

The second half is low-power radio for sensors that run for years on a battery and transmit readings for kilometres: water meters, field sensors, cargo tracking. The technology became an industry standard, but earning from it is harder than deploying it. Risks: the semiconductor cycle, debt and customer concentration. The company pays no dividend.