Sushree Mohanty

Thu, Jun 19, 2025, 6:00 AM5 min read

Not all great growth stocks come with a sky-high price tag. In fact, some of the most promising companies in today's market are trading for less than $50 per share, demonstrating that investors don't have to break the bank to accumulate long-term wealth. The two stocks on this list have strong fundamentals, attractive valuations, and compelling growth prospects, making them ideal for a buy-and-hold strategy.

Let's take a look at two standout picks that provide significant upside potential without a hefty price.

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Valued at a market capitalization of $3.5 billion, Semtech (SMTC) is a chipmaker and connectivity innovator specializing in analog/mixed-signal semiconductors and IoT systems, particularly its LoRa technology.

Semtech reported strong first-quarter fiscal year 2026 results, signaling a turning point in the company's post-pandemic transformation. However, SMTC stock is down 32% year-to-date, indicating that now may be a good time to buy shares on the dip.

During the Q1 earnings call, CEO Hong Hou emphasized the company's adaptability and resilience in the face of geopolitical uncertainties such as U.S.-China trade tensions and supply-chain volatility. Total revenue for the quarter increased 22% year on year to $251.1 million. Adjusted earnings per share increased to $0.38 as well, up from $0.06 in the prior year quarter. Semtech's infrastructure business outperformed expectations with record revenue of $51.6 million, up 143% year on year. This growth was driven by rising demand for artificial intelligence (AI) workloads and next-generation compute clusters. Notably, CopperEdge, a disruptive active copper cable (ACC) technology designed for AI data centers, contributed to this expansion.

Management stated that CopperEdge's production ramp is expected to begin in the latter half of fiscal 2026, positioning it as a significant revenue contributor by year-end. In the firm's Industrial segment, IoT hardware and LoRa drove revenue growth of 24%. LoRa-enabled revenue reached $38.9 million (up 81% year on year), reflecting strong demand from new verticals such as healthcare, wearables, and robotics.