Lattice Semiconductor Corporation (LSCC) | Investment Case

1. Company Snapshot

1.a. Company Description

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas.The company offers field programmable gate arrays that consist of four product families, including the Certus-NX and ECP, Mach, iCE40, and CrossLink.It also provides video connectivity application specific standard products.

In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services.It sells its products directly to end customers, and indirectly through a network of independent manufacturers' representatives and independent distributors.The company primarily serves original equipment manufacturers in the communications and computing, consumer, and industrial and automotive end markets.

Lattice Semiconductor Corporation was incorporated in 1983 and is headquartered in Hillsboro, Oregon.

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1.b. Last Insights on LSCC

Breaking News: Lattice Semiconductor Corporation has caught the attention of billionaire Stanley Druckenmiller, who has exited his position in Nvidia. Druckenmiller's Duquesne Family Office is betting on this chipmaker stock. The company recently reported its earnings, with revenue growth driven by its focus on low-power and small form factor FPGAs. Some analysts recommend a buy, citing the company's strong positioning in emerging markets. Others advise a hold, citing competition in the semiconductor space. Druckenmiller's investment has sparked interest in the stock. Analysts are watching the company's progress.

1.c. Company Highlights

Last Price	92.31
Change Percentage	4.16%
Open	92.69
Previous Close	88.62
Market Cap ( Millions)	12627
Volume	1495707
Year High	108.08
Year Low	34.69
M A 50	89.72
M A 200	70.78

FCF Yield	1.11%
Dividend Yield	0.00%
ROE	0.44%
Debt / Equity	10.96%
Net Debt / EBIDTA	-97.35%
Price To Book	17.67
Price Earnings Ratio	4092.23
Price To FCF	89.96
Price To sales	24.13
EV / EBITDA	219.91

2. Lattice's Strong Q4 and 2025 Performance Set Stage for Continued Growth

Lattice delivered a robust Q4 with revenue reaching $145.8 million, up 9.3% sequentially and 24.2% year-over-year. For the full year 2025, revenue increased 2.7% to $523.3 million, in line with expectations. The company's non-GAAP gross margin expanded 190 basis points to 69.3% in 2025, reflecting its value proposition to customers. EPS came in at $0.32, matching estimates. Lattice's strong financial performance was driven by its platform successes across communications and computing, with revenue up 28%.

Publication Date: Feb -17

                                    📋 Highlights
                                    Revenue Growth Acceleration::
                                                Q1 2026 revenue guidance midpoint of $165M reflects 37% YoY growth, up from 24.2% YoY in Q4 2025 ($145.8M).
Gross Margin Expansion::
                                                Non-GAAP gross margin reached 69.3% in 2025 (up 190 bps YoY) and is expected to stay around 69.5% in Q1 2026.
AI Server Market Leadership::
                                                AI server segment grew 85% YoY in 2025, driven by design wins with GPUs/AI accelerators, contributing to $740B hyperscaler CapEx in 2026.
Design Win Momentum::
                                                Q4 2025 saw record design wins supporting 25%+ growth, with new products accounting for 20% revenue in 2025 and expected to reach mid-to-high 20% in 2026.
Strategic R&D Investment::
                                                Q1 2026 OpEx guidance ($59-61M) reflects disciplined R&D spending to drive future growth, with 2026 full-year CapEx targeting $100M+ for operational improvements.

                                

Guidance and Outlook

For Q1 2026, Lattice expects revenue to grow into the range of $158 million to $172 million, representing 37% year-over-year growth at the midpoint. Non-GAAP gross margin is expected to be 69.5% plus or minus 1%. The company is confident in its growth prospects, with Ford Tamer expressing increased confidence in the demand environment for both comms and compute and industrial markets. Lattice is well-booked for 2026 and starting to book into 2027 in the comms and compute segment.

Growth Drivers

The growth in comms and compute was driven by the server segment, which grew 85% year-over-year, with the AI server piece being the fastest-growing segment. New applications such as security, boot, power sequencing, and post-quantum cryptography are driving larger FPGA attach rates and higher ASPs. New product growth contributed to 20% exposure in 2025 and is expected to reach the mid to high end of 20% in 2026.

Valuation

Lattice's current valuation metrics indicate a high growth expectation. The stock trades at a P/E Ratio of 4328.07 and an EV/EBITDA of 284.13, suggesting that the market has already priced in significant growth. Analysts estimate next year's revenue growth at 33.8%, which is slightly above the company's guided range. With a P/S Ratio of 25.52, it's essential to monitor whether the company can meet these expectations.

Operational Highlights

Lattice is managing inventory levels to ensure customer support and responsiveness. The company is focused on providing low-power, small-size, low-cost, fast-boot-time, and long-lived solutions, which differentiates it in the small to mid-range FPGA market. Lead times have increased due to tight areas like substrate and assembly, but the company is in relatively good shape and has allocated resources to meet demand.

3. NewsRoom

Lattice Wins Multiple 2026 Global InfoSec Awards at RSA Conference

Mar -23

Source: businesswire.com

Billionaire Druckenmiller is betting on this chipmaker stock after dumping Nvidia; Time to buy?

Mar -23

Source: finbold.com

Lattice Joins NVIDIA Halos Ecosystem to Advance Safety for Physical AI with Holoscan Sensor Bridge

Mar -16

Source: businesswire.com

AI's Expansion Runs On Smaller Companies

Mar -13

Source: seekingalpha.com

Lattice Semiconductor Corporation (NASDAQ:LSCC) Given Average Rating of “Moderate Buy” by Analysts

Mar -11

Source: defenseworld.net

Lattice Wins ECD ‘Best in Show' Award at embedded world 2026

Mar -10

Source: businesswire.com

Are Computer and Technology Stocks Lagging Lattice Semiconductor (LSCC) This Year?

Mar -05

Source: zacks.com

Lattice Semiconductor Corporation (LSCC) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.64%)

6. Segments

Industrial and Automotive

Expected Growth: 5%

Lattice Semiconductor's Industrial and Automotive segments are driven by increasing demand for industrial automation, electrification of vehicles, and growth in advanced driver-assistance systems (ADAS). The company's low-power, small-form-factor FPGAs are well-suited for these applications, enabling efficient processing, sensor integration, and functional safety.

Communications and Computing

Expected Growth: 7%

Lattice Semiconductor's Communications and Computing segment growth is driven by increasing demand for 5G infrastructure, cloud computing, and artificial intelligence. The company's low-power FPGAs and programmable logic devices are well-positioned to capitalize on these trends, with a 7% growth rate fueled by customer wins in datacenter, 5G base stations, and edge computing applications.

Consumer

Expected Growth: 4%

The 4% growth in Consumer segment of Lattice Semiconductor Corporation is driven by increasing demand for smart home devices, rising adoption of AI-enabled consumer electronics, and growing need for low-power, high-performance semiconductor solutions in IoT devices.

7. Detailed Products

FPGA (Field-Programmable Gate Array)

Lattice's FPGAs are low-power, small-form-factor, and highly programmable devices that can be used for a wide range of applications, including edge AI, 5G, and industrial automation.

Video Connectivity ASSP (Application-Specific Standard Product)

Lattice's video connectivity ASSPs are designed for high-speed video interfaces, such as HDMI, DisplayPort, and USB-C, and are used in applications such as virtual reality, augmented reality, and 4K video processing.

ASIC (Application-Specific Integrated Circuit) Development

Lattice's ASIC development services provide custom-designed ASICs for specific applications, such as high-performance computing, data center, and aerospace.

Security IP Cores

Lattice's security IP cores provide cryptographic and secure boot functionality for a wide range of applications, including IoT, industrial control systems, and automotive systems.

SensAI (Smart Embedded Vision)

Lattice's SensAI is a complete platform for implementing AI and machine learning in edge devices, including smart cameras, robots, and drones.

8. Lattice Semiconductor Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Lattice Semiconductor Corporation is medium due to the availability of alternative products from competitors.

Bargaining Power Of Customers

The bargaining power of customers for Lattice Semiconductor Corporation is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Lattice Semiconductor Corporation is medium due to the company's dependence on a few key suppliers for critical components.

Threat Of New Entrants

The threat of new entrants for Lattice Semiconductor Corporation is high due to the relatively low barriers to entry in the semiconductor industry.

Intensity Of Rivalry

The intensity of rivalry for Lattice Semiconductor Corporation is high due to the highly competitive nature of the semiconductor industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	2.30%
Debt Cost	10.38%
Equity Weight	97.70%
Equity Cost	10.99%
WACC	10.97%
Leverage	2.36%

11. Quality Control: Lattice Semiconductor Corporation passed 9 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Axcelis Technologies

A-Score: 5.2/10

Value: 4.5

Growth: 8.6

Quality: 7.9

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

Qorvo

A-Score: 4.4/10

Value: 3.8

Growth: 3.9

Quality: 5.6

Yield: 0.0

Momentum: 8.0

Volatility: 5.0

1-Year Total Return ->

Teradyne

A-Score: 4.1/10

Value: 0.0

Growth: 4.4

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

Entegris

A-Score: 3.7/10

Value: 2.9

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

Lattice Semi

A-Score: 3.5/10

Value: 0.0

Growth: 4.0

Quality: 6.2

Yield: 0.0

Momentum: 7.5

Volatility: 3.3

1-Year Total Return ->

IPG Photonics

A-Score: 3.0/10

Value: 1.7

Growth: 2.1

Quality: 4.1

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

31.78%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.97%

Lattice Semiconductor Corporation - US5184151042

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on LSCC

1.c. Company Highlights

Better Quality

Expensive

Higher Growth

Earnings Miss

Revenues Miss

Revenues Beats

Medium Volatility

Weak Momentum

Average Quality

Stable Momentum

Average Growth

Strong Momentum

2. Lattice's Strong Q4 and 2025 Performance Set Stage for Continued Growth

Guidance and Outlook

Growth Drivers

Valuation

Operational Highlights

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.64%)

6. Segments

Industrial and Automotive

Expected Growth: 5%

Communications and Computing

Expected Growth: 7%

Consumer

Expected Growth: 4%

7. Detailed Products

FPGA (Field-Programmable Gate Array)

Video Connectivity ASSP (Application-Specific Standard Product)

ASIC (Application-Specific Integrated Circuit) Development

Security IP Cores

SensAI (Smart Embedded Vision)

8. Lattice Semiconductor Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Lattice Semiconductor Corporation passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

92.31$

Current Price

92.31$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA