Lattice Semiconductor (LSCC) AI Stock Analysis

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Lattice Semiconductor

(NASDAQ:LSCC)

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Outperform 73 (OpenAI - 5.2)

Rating:73Outperform

Price Target:

$98.00

▲(0.25% Upside)

Action:ReiteratedDate:02/12/26

The score is driven by strong earnings-call outlook (accelerating growth and margin leverage) and a solid financial foundation (low leverage and healthy cash generation), supported by positive technical trend. These positives are tempered by very weak TTM profitability and a highly stretched valuation (extreme P/E) that increases downside risk if execution or supply conditions disappoint.

Positive Factors

Balance-sheet strength

Lattice's exceptionally low leverage and substantial equity base provide durable financial flexibility. With minimal debt on the balance sheet, the company can prioritize R&D, fund production ramps, pursue buybacks, or absorb cyclical semiconductor weakness without jeopardizing liquidity or covenant constraints.

Cash generation

Consistent operating and free cash flow establishes an internal funding engine for capital allocation. Strong OCF and rising FCF margins support sustainable investment in new products, the $250M buyback program, and working-capital needs tied to production ramps while limiting reliance on external financing.

Product momentum & design wins

Rapid adoption of Nexus/AVANT and record design wins increase addressable market and ASPs, especially in data-center/server builds. Higher attach rates per server and expanding new-product mix should drive durable revenue growth and margin leverage as newer platforms replace legacy products over multiple years.

Negative Factors

Compressed profitability

Despite strong gross margins (~68–69%), profitability below the operating line has eroded net returns. Very slim TTM net margins reduce the firm's ability to absorb shocks, magnify sensitivity to tax and OpEx swings, and mean that execution missteps could quickly depress earnings and cash conversion.

Rising operating expense

Planned increases in R&D and operating expense are strategic but will pressure near-term operating leverage. If product ramps or design-win monetization lags expectations, higher fixed spending could compress margins and extend the timeline to recover profitability despite stronger top-line trends.

Supply-chain & execution risk

Tight substrate and assembly supply, longer lead times, and management's emphasis on 'self-execution' risk can constrain ability to fulfill design wins and scale production. Persistent supply friction could delay revenue recognition, raise inventory/WC needs, and limit the sustained capture of AI/datacenter demand.

Lattice Semiconductor (LSCC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$13.30B

Dividend YieldN/A

Average Volume (3M)2.10M

Price to Earnings (P/E)4362.4

Beta (1Y)2.33

Revenue Growth-12.03%

EPS Growth-80.99%

CountryUS

Employees1,110

SectorTechnology

Sector Strength88

IndustrySemiconductors

Share Statistics

EPS (TTM)0.32

Shares Outstanding136,786,210

10 Day Avg. Volume2,681,571

30 Day Avg. Volume2,096,006

Financial Highlights & Ratios

PEG Ratio-36.85

Price to Book (P/B)15.10

Price to Sales (P/S)20.61

P/FCF Ratio81.33

Enterprise Value/Market Cap1.00

Enterprise Value/Revenue25.42

Enterprise Value/Gross Profit38.22

Enterprise Value/Ebitda232.71

Forecast

1Y Price Target

$110.08

Price Target Upside12.60% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering12

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

Lattice Semiconductor Business Overview & Revenue Model

Company DescriptionLattice 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.

How the Company Makes MoneyLattice Semiconductor generates revenue primarily through the sale of its semiconductor products, including FPGAs and other programmable devices. The company has a diverse customer base spanning multiple industries, which helps mitigate risks associated with dependency on a single sector. Key revenue streams include direct sales to OEMs (original equipment manufacturers) and distributors, as well as royalties from licensing its technology. Additionally, Lattice benefits from strategic partnerships with major technology firms that enhance its product offerings and expand its market reach. The increasing demand for low-power, high-performance solutions in emerging markets such as IoT (Internet of Things) and edge computing further contributes to the company's revenue growth.

Lattice Semiconductor Key Performance Indicators (KPIs)

Any

Revenue by Geography

Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.

Chart InsightsLattice Semiconductor's revenue in Asia, historically the strongest region, is experiencing a downturn, reflecting broader challenges in the industrial and automotive segments. Despite this, the company projects robust growth in communications and computing, driven by AI-optimized servers and data center infrastructure. The Americas and Europe also show volatility, but strategic initiatives and strong bookings suggest a positive outlook for 2026. The earnings call highlights the company's confidence in overcoming current challenges, with a focus on expanding AI usage and innovation.

Data provided by:

The Fly

Lattice Semiconductor Earnings Call Summary

Earnings Call Date:Feb 10, 2026

(Q4-2025)

% Change Since: |

Next Earnings Date:May 05, 2026

Earnings Call Sentiment Positive

The call presented a strong operational and financial recovery with robust top-line acceleration (Q4 revenue +24.2% YoY), meaningful margin expansion, record design wins, and conservative balance-sheet management (debt-free, buybacks). Management provided confident, above-consensus Q1 guidance (midpoint +37% YoY) and reiterated multi-year growth drivers (data center AI attach rates, product ramps, and record design wins). Headwinds include 2025 weakness in industrial & automotive (-18%) from channel normalization, near-term supply-chain and lead-time constraints, increased OpEx in early 2026 for R&D, and elevated non-GAAP tax rates. On balance, the positives — accelerating demand, margin leverage, cash generation, normalized channel inventory, and product momentum — substantially outweigh the listed challenges, though successful execution and supply management remain critical.

Q4-2025 Updates

Positive Updates

Quarterly and Annual Revenue Growth

Q4 revenue of $145.8M, up 9.3% sequentially and 24.2% year-over-year; full-year 2025 revenue of $523.3M, up 2.7% versus 2024 and in line with expectations.

Strong Q1 2026 Guidance

Q1 2026 revenue guidance midpoint of $165M (range $158M–$172M) implying >37% year-over-year growth; Q1 non-GAAP EPS guidance $0.34–$0.38 (midpoint $0.36), ~65% year-over-year growth at the midpoint.

Margin Expansion and Profitability Leverage

Full-year non-GAAP gross margin expanded 190 basis points to 69.3%; full-year non-GAAP operating margin expanded ~340 basis points and EBITDA margin increased 320 basis points to 35%; Q4 gross margin ~69.4%.

Earnings and Cash Flow Strength

Non-GAAP EPS grew 17% to $1.05 for the year; GAAP operating cash flow rose to $175.1M (from $140.9M), operating cash flow margin improved to 33.5% (from 27.7%); full-year free cash flow $133M with a 25.3% margin (up from $120M, 23.5%).

Record Quarterly Execution and Design Wins

Company reported its strongest sequential performance in seven years in Q4 and stated record design-win quarters continuing into Q4, supporting multi-year growth visibility and design-win-driven backlog into 2026 and bookings into 2027.

Product Momentum and New Product Adoption

New product revenue grew ~70% in 2025; new product revenue reached low-20% of total in 2025 and is expected to be in the mid-20% range of total revenue in 2026 as Nexus and AVANT adoption broadens.

Data Center & Server Strength

Communications & compute showed strong performance: Q4 comms & compute up 25% sequentially and ~60% year-over-year; server revenue grew ~85% year-over-year. Management noted increasing attach rates (passing three FPGAs per server) and rising ASPs from roughly $3 to above $4.

Capital Allocation and Balance Sheet

Company is debt-free, completed $100M share repurchase (~1.8M shares) in 2025 and Board authorized an additional $250M repurchase program; management emphasizes return of capital while retaining flexibility.

Channel Inventory Normalization

Management reported that channel inventory targets were achieved and normalized, positioning revenue to better track end-customer consumption going into 2026.

Negative Updates

Industrial & Automotive Softness

Full-year industrial and automotive revenue declined ~18% in 2025 as channel inventory normalization progressed, which partially offset communications and compute growth.

Rising Operating Expense Investment

While full-year non-GAAP OpEx fell ~1% to $213.5M, Q4 non-GAAP OpEx increased to $56.4M (up ~5% sequentially and ~7% year-over-year) and management expects OpEx to rise in Q1 and Q2 driven by R&D investments to scale the business.

Supply-Chain Tightness and Lead-Time Risk

Management cited increased lead times and tightness in substrates and assembly, with suppliers and channel under pressure; company has increased orders but supply constraints remain a risk to execution.

Gross Margin Variability

Q4 non-GAAP gross margin was slightly down versus Q3 (management cited mix shifts), and gross margin could fluctuate through 2026 as customer mix varies.

High Effective Tax Rate

Non-GAAP income tax guidance for Q1 of ~46% and full-year expected ~47% — relatively high and a headwind to net earnings on a GAAP/non-GAAP basis.

Execution and Scaling Risk

Management repeatedly highlighted execution risk around delivering on ambitious investment and supply plans (the 'three S's: solutions, support, supply') and said the biggest risk is self-execution against plans.

Revenue Linearity and Guidance Range

Guidance range for Q1 widened ($158M–$172M) reflecting some uncertainty on intra-quarter linearity and timing of customer deliveries despite comfort with the midpoint.

Company Guidance

Lattice's guidance for Q1 2026 calls for revenue of $158–172 million (midpoint $165M), which the company says implies >37% year‑over‑year growth and ~13% sequential growth; Q1 non‑GAAP EPS of $0.34–$0.38 (midpoint $0.36), roughly +65% YoY; non‑GAAP gross margin of ~69.5% ±100 bps; non‑GAAP operating expense of $59–61M; and a Q1 non‑GAAP tax rate of ~46%. For full‑year 2026 management reiterated it expects at least 20% revenue growth (with improved visibility to growth above that), full‑year gross margin in the same ~69.5% range (with mix variability), a non‑GAAP tax rate of ~47%, and new‑product revenue to reach the mid‑20% range of total revenue (after new‑product revenue grew ~70% in 2025); the company also noted normalized channel inventory, that revenue should more closely track consumption, and a Board‑authorized additional $250M share‑repurchase program.

Lattice Semiconductor Financial Statement Overview

Summary

Balance sheet strength (very low leverage) and solid operating/free cash flow support a durable financial profile, but TTM profitability is the key drag with sharply compressed net and EBIT margins despite modest revenue growth.

Income Statement

Neutral

TTM (Trailing-Twelve-Months) revenue is up modestly (+5.7%) and gross margin remains strong (~68%), but profitability has compressed sharply: net margin is ~0.6% in TTM versus ~12% in 2024 and ~35% in 2023, with EBIT margin down to ~2.4%. The trend suggests the company is maintaining product-level economics while facing significant pressure below the gross profit line (costs/expenses), creating elevated earnings volatility despite stable top-line performance.

Balance Sheet

Very Positive

The balance sheet is a clear strength with very low leverage (TTM debt-to-equity ~0.05) and a large equity base (~$693M) supporting ~$863M of assets. While return on equity is weak in TTM (~0.4%) due to the earnings downturn, the company has meaningfully reduced leverage versus 2020–2022 and retains substantial financial flexibility.

Cash Flow

Positive

Cash generation remains solid: TTM operating cash flow is ~$175M and free cash flow is ~$140M, with free cash flow growth up ~13% versus the prior period shown. Cash flow is holding up better than earnings (operating cash flow running ~1.49x net income), but free cash flow relative to net income is below 1.0 in TTM (~0.80), indicating earnings-to-cash conversion is not as strong as in prior years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	523.26M	509.40M	737.15M	660.36M	515.33M
Gross Profit	356.94M	340.40M	514.67M	452.05M	321.68M
EBITDA	57.59M	106.94M	255.37M	226.26M	133.94M
Net Income	3.08M	61.13M	259.06M	178.88M	95.92M
Balance Sheet
Total Assets	883.12M	843.90M	840.89M	798.71M	726.49M
Cash, Cash Equivalents and Short-Term Investments	133.89M	136.29M	128.32M	145.72M	131.57M
Total Debt	78.23M	15.25M	27.05M	148.82M	182.88M
Total Liabilities	169.07M	132.97M	148.87M	311.55M	314.86M
Stockholders Equity	714.05M	710.93M	692.02M	487.16M	411.63M
Cash Flow
Free Cash Flow	132.58M	119.89M	236.34M	215.47M	157.89M
Operating Cash Flow	175.11M	140.88M	269.59M	238.81M	167.72M
Investing Cash Flow	-62.31M	-37.69M	-33.25M	-34.93M	-89.80M
Financing Cash Flow	-115.70M	-94.46M	-253.72M	-188.07M	-128.61M

Lattice Semiconductor Technical Analysis

Technical Analysis Sentiment

Positive

Last Price97.76

Price Trends

50DMA

83.33

Positive

100DMA

76.58

Positive

200DMA

66.42

Positive

Market Momentum

MACD

4.50

Negative

RSI

63.37

Neutral

STOCH

55.61

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSCC, the sentiment is Positive. The current price of 97.76 is above the 20-day moving average (MA) of 89.23, above the 50-day MA of 83.33, and above the 200-day MA of 66.42, indicating a bullish trend. The MACD of 4.50 indicates Negative momentum. The RSI at 63.37 is Neutral, neither overbought nor oversold. The STOCH value of 55.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSCC.

Lattice Semiconductor Risk Analysis

Lattice Semiconductor disclosed 28 risk factors in its most recent earnings report. Lattice Semiconductor reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Lattice Semiconductor Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVMI	74 Outperform	$13.79B	55.44	23.08%	―	39.37%	40.87%
LSCC	73 Outperform	$13.30B	4,362.39	0.43%	―	-12.03%	-80.99%
MTSI	73 Outperform	$18.51B	114.04	12.95%	―	32.58%	-173.04%
RMBS	65 Neutral	$11.23B	49.27	18.55%	―	31.05%	30.35%
SWKS	64 Neutral	$9.32B	23.83	6.49%	4.37%	-2.18%	-16.84%
QRVO	64 Neutral	$7.79B	22.37	9.62%	―	-7.22%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

LSCC

Lattice Semiconductor

97.66

31.42

47.43%

MTSI

MACOM Technology Solutions Holdings

245.53

126.26

105.86%

NVMI

Nova

442.53

183.38

70.76%

RMBS

Rambus

95.27

35.11

58.36%

SWKS

Skyworks Solutions

59.78

-4.74

-7.34%

QRVO

Qorvo

82.46

7.19

9.55%

Lattice Semiconductor Corporate Events

Business Operations and StrategyStock Buyback

Lattice Semiconductor Announces $250 Million Stock Buyback

Positive

Dec 5, 2025

On December 3, 2025, Lattice Semiconductor‘s Board of Directors approved a $250 million stock repurchase program, allowing the company to buy back its common stock without a set termination date. This move, effective immediately, reflects Lattice’s strong financial position and aims to return capital to shareholders while continuing investments in its market leadership in Small and Mid-Range FPGAs and its Companion Chip strategy.

The most recent analyst rating on (LSCC) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Lattice Semiconductor stock, see the LSCC Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 12, 2026