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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

Lattice Semiconductor's recent performance was driven by strong Q3 earnings, with revenue growing to $133.3 million, fueled by AI server strength in the Communications & Computing segment. The company's low-power programmable solutions are in high demand, particularly in data centers. Analysts have a "Buy" rating on the stock, with 11 firms recommending a buy and one a strong buy. The company's solid financials, strong cash generation, and growth prospects in emerging markets like robotics and vision systems also contributed to its performance.

1.c. Company Highlights

2. Lattice Semiconductor's Q3 2025 Earnings: A Strong Performance

Lattice Semiconductor reported a robust financial performance in Q3 2025, with revenue increasing 7.6% quarter-over-quarter and 4.9% year-over-year to $133.3 million. The company's gross margin expanded by 20 basis points quarter-over-quarter and 50 basis points year-over-year to 69. Q3 non-GAAP EPS came in at $0.28, in line with estimates. The company's strong performance was driven by its diversified position in the largest and fastest-growing applications, growing attach rates, and increasing average selling prices from its new products.

Publication Date: Nov -05

📋 Highlights
  • Q3 Revenue Growth:: Revenue reached $133.3 million, up 7.6% sequentially and 4.9% year-over-year.
  • Q4 Guidance:: Midpoint revenue of $143 million reflects 22% year-over-year growth, the largest increase in nearly 2 years.
  • Comms/Compute Strength:: Segment revenue grew 21% YoY and 8% sequentially to a record $66.65 million (58% of total revenue).
  • AI Adoption Growth:: AI usage in comms/compute expected to rise from 15–20% in 2025 to 20–25% in 2026, with 60% of total revenue from comms/compute by 2026.
  • Margin Expansion:: Non-GAAP gross margin hit 69.5%, up 20 bps sequentially and 50 bps annually, driven by higher ASPs and product mix.

Segment Performance

The Communications and Computing segment was a significant growth driver, with revenue growing 21% year-over-year and 8% sequentially to a record level. This growth was driven by expanding footprint and increased use cases in general-purpose and AI-optimized servers. The company's diversified position in this segment, with a growing mix of AI usage, is expected to continue driving growth.

Guidance and Outlook</l6> <p>Lattice Semiconductor's Q4 2025 revenue guidance is $143 million at the midpoint, representing 22% year-over-year growth, the largest increase in nearly 2 years. The company's executives are confident in their prospects, citing a strong recovery and upward momentum. They expect the Communications and Computing segment to continue growing, with revenue expected to be around 60% of total revenue in 2026. The company's guidance is supported by the strongest booking patterns seen in at least 6 quarters.</p> <h6>Valuation and Growth Expectations

Lattice Semiconductor's current valuation metrics are mixed, with a P/E Ratio of 274.02 and a P/S Ratio of 17.71. The company's ROE is 4.5%, and its ROIC is 3.95%. Analysts estimate next year's revenue growth at 21.0%. Given the company's strong performance and guidance, it remains to be seen whether the current valuation is justified. The company's growth prospects, driven by its diversified position in the Communications and Computing segment, are promising, but the valuation metrics suggest that the current stock price may be pricing in a significant amount of growth.

3. NewsRoom

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Lattice Semiconductor Corporation (NASDAQ:LSCC) Receives Average Rating of “Buy” from Analysts

Dec -01

Source: defenseworld.net

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Artisan Global Discovery Fund: Q3 Delivers Strong Results Amid Trimming And Exits

Nov -20

Source: seekingalpha.com

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Nvidia, Micron Lead Chip Selloff as Nasdaq Falls Ahead of Shutdown Talks

Nov -12

Source: gurufocus.com

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Lattice to Showcase Advanced Industrial and Edge AI Solutions at SPS 2025

Nov -11

Source: businesswire.com

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Lattice Semiconductor: Positioned For The Semiconductor Cyclical Upswing

Nov -05

Source: seekingalpha.com

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Lattice's Q3 Earnings Meet Estimates on Higher Revenues

Nov -04

Source: zacks.com

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Lattice Semiconductor Analysts Boost Their Forecasts After Q3 Earnings

Nov -04

Source: benzinga.com

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Bessemer Group Inc. Sells 14,296 Shares of Lattice Semiconductor Corporation $LSCC

Nov -04

Source: defenseworld.net

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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Axcelis Technologies

A-Score: 4.7/10

Value: 4.4

Growth: 8.6

Quality: 7.9

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Teradyne

A-Score: 4.0/10

Value: 4.2

Growth: 4.4

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Lattice Semi

A-Score: 3.7/10

Value: 0.0

Growth: 4.0

Quality: 6.6

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

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Entegris

A-Score: 3.7/10

Value: 2.6

Growth: 6.6

Quality: 6.9

Yield: 0.0

Momentum: 3.0

Volatility: 3.0

1-Year Total Return ->

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IPG Photonics

A-Score: 3.4/10

Value: 3.6

Growth: 2.1

Quality: 3.9

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Qorvo

A-Score: 3.3/10

Value: 2.8

Growth: 3.9

Quality: 5.1

Yield: 0.0

Momentum: 3.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

78.85$

Current Price

78.85$

Potential

-0.00%

Expected Cash-Flows