Lattice Semiconductor (LSCC) AI Stock Analysis

• Market Cap: $8.68B
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 322.1
• Beta (1Y): 2.51
• Revenue Growth: -12.03%
• EPS Growth: -80.99%
• Country: US
• Employees: 1,110
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.28
• Shares Outstanding: 136,786,390
• 10 Day Avg. Volume: 2,430,209
• 30 Day Avg. Volume: 1,772,267
• PEG Ratio: -1.73
• Price to Book (P/B): 11.41
• Price to Sales (P/S): 15.93
• P/FCF Ratio: 67.68
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 25.85
• Enterprise Value/Gross Profit: 37.96
• Enterprise Value/Ebitda: 291.60
• 1Y Price Target: $79.40
• Price Target Upside: 25.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.05
• Revenue Forecast (FY): $519.20M

• Rating: 72 Outperform
• Price Target: $81.00 ▲(27.58% Upside)

Lattice Semiconductor's overall stock score is driven by strong financial performance and a positive earnings call outlook, highlighting growth in key segments like communications and computing. Technical analysis supports a bullish trend, although the high P/E ratio suggests overvaluation risks. The company's strategic positioning in AI and data center infrastructure provides a promising growth trajectory despite challenges in certain segments.

Positive Factors

Strong Financial Stability

Lattice's low leverage indicates strong financial stability, providing resilience against market volatility and enabling strategic investments.

Revenue Growth in Key Segments

Strong growth in communications and computing highlights Lattice's competitive positioning and potential for sustained revenue expansion.

Cash Flow Strength

Robust cash flow growth enhances Lattice's liquidity and operational flexibility, supporting future investments and shareholder returns.

Negative Factors

Declining Revenue Growth

A decline in revenue growth could signal challenges in maintaining market share and competitiveness, impacting long-term growth prospects.

Industrial and Automotive Segment Challenges

Challenges in industrial and automotive segments may hinder overall growth, requiring strategic adjustments to regain momentum.

Declining ROE

A declining ROE suggests reduced efficiency in generating profits, potentially affecting investor confidence and capital allocation.

Lattice Semiconductor Business Overview & Revenue Model

Company Description

Lattice Semiconductor Corporation (LSCC) is a leading provider of low-power, field-programmable gate arrays (FPGAs), programmable logic devices, and related software solutions. Founded in 1983 and headquartered in Hillsboro, Oregon, Lattice serves various sectors, including communications, industrial, automotive, and consumer electronics. The company focuses on delivering innovative, energy-efficient solutions that enable designers to create complex, high-performance applications with greater flexibility and reduced time to market.

How the Company Makes Money

Lattice Semiconductor generates revenue primarily through the sale of its semiconductor products, specifically its FPGAs and related development tools. The company makes money by selling hardware components to original equipment manufacturers (OEMs) and design engineers who integrate these devices into their systems. Key revenue streams include product sales, royalties from intellectual property licenses, and software tools that facilitate the design and implementation of their semiconductor solutions. Additionally, Lattice has established significant partnerships with major technology firms and industry players, which help expand its market reach and drive sales. The company's commitment to innovation and development of low-power solutions positions it well in growing markets, contributing positively to its earnings.

Lattice Semiconductor Financial Statement Overview

Summary

Lattice Semiconductor demonstrates a stable financial foundation with strong profitability and cash flow metrics. However, the recent decline in revenue growth and ROE suggests potential challenges in maintaining growth momentum. The company's low leverage and robust cash flow provide a buffer against these risks, positioning it well for future opportunities in the semiconductor industry.

Income Statement

Lattice Semiconductor's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth at -2.1%, which is a concern. However, the company maintains a healthy gross profit margin of 66.7% and a net profit margin of 6.5%. The EBIT and EBITDA margins have decreased compared to previous years, reflecting operational challenges. Overall, while profitability remains strong, the recent decline in revenue growth is a risk factor.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.023, indicating strong financial stability. The return on equity (ROE) is 4.5% for the TTM, which is lower than previous years, suggesting reduced efficiency in generating profits from equity. The equity ratio is robust, showing a strong capital structure. Overall, the company has a stable financial position with low leverage, but the declining ROE is a point of concern.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 16.3% growth in free cash flow for the TTM. The operating cash flow to net income ratio is 1.84, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.88, reflecting efficient cash conversion. Overall, the cash flow position is strong, with healthy growth and conversion metrics, supporting the company's liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	377.47M	509.40M	737.15M	660.36M	404.09M	398.80M
Gross Profit	257.01M	340.40M	514.67M	452.05M	238.42M	219.44M
EBITDA	33.46M	106.94M	255.37M	226.26M	95.65M	35.29M
Net Income	10.73M	61.13M	259.06M	178.88M	43.49M	-26.32M
Balance Sheet
Total Assets	844.36M	843.90M	840.89M	798.71M	612.02M	623.69M
Cash, Cash Equivalents and Short-Term Investments	117.91M	136.29M	128.32M	145.72M	118.08M	128.68M
Total Debt	20.38M	15.25M	16.31M	148.82M	172.67M	259.65M
Total Liabilities	137.96M	132.97M	148.87M	311.55M	284.36M	365.23M
Stockholders Equity	706.40M	710.93M	692.02M	487.16M	327.67M	258.46M
Cash Flow
Free Cash Flow	84.17M	119.89M	236.34M	215.47M	108.55M	34.95M
Operating Cash Flow	117.52M	140.88M	269.59M	238.81M	124.14M	51.46M
Investing Cash Flow	-41.13M	-37.69M	-33.25M	-34.93M	-15.54M	-21.11M
Financing Cash Flow	-95.29M	-94.46M	-253.72M	-188.07M	-109.91M	-16.84M

Lattice Semiconductor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 63.49
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSCC, the sentiment is Neutral. The current price of 63.49 is below the 20-day moving average (MA) of 69.45, below the 50-day MA of 69.69, and above the 200-day MA of 58.02, indicating a neutral trend. The MACD of -1.37 indicates Positive momentum. The RSI at 36.02 is Neutral, neither overbought nor oversold. The STOCH value of 7.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LSCC.

Lattice Semiconductor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVMI	81 Outperform	$9.39B	40.37	23.58%	―	39.37%	40.87%
RMBS	78 Outperform	$11.59B	51.10	19.66%	―	31.05%	30.35%
LSCC	72 Outperform	$8.68B	322.12	3.86%	―	-12.03%	-80.99%
SWKS	71 Outperform	$10.35B	22.59	7.89%	3.62%	-2.18%	-16.84%
QRVO	71 Outperform	$7.94B	37.09	6.30%	―	-7.22%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MTSI	60 Neutral	$12.66B	―	-5.12%	―	31.33%	-173.04%

Lattice Semiconductor Corporate Events

Lattice Semiconductor Reports Record Q3 2025 Revenue

Lattice Semiconductor Corporation, a leader in low-power programmable solutions, operates in the communications, computing, industrial, automotive, and consumer markets, providing technology that enables secure and connected innovations.

Lattice Semiconductor’s Q2 2025 Earnings Call Highlights

Lattice Semiconductor Corporation’s recent earnings call for Q2 2025 was marked by a strong performance, particularly in the Communications and Compute segments, and a positive outlook for Q3. Despite facing challenges in the Industrial and Automotive segments, the overall sentiment was buoyant, driven by record design wins and robust financial metrics.

Lattice Semiconductor Reports Strong Q2 2025 Results

Lattice Semiconductor Corporation is a leading company in the low power programmable sector, providing solutions for various markets including communications, computing, industrial, automotive, and consumer. In its second quarter of 2025, Lattice Semiconductor reported revenues of $124 million with a GAAP gross margin of 68.4% and a net income of $0.02 per diluted share. On a non-GAAP basis, the company achieved a gross margin of 69.3% and a net income per diluted share of $0.24. The company highlighted broad-based growth across key financial metrics and record design wins, with significant contributions from communications and computing markets. The industrial and automotive markets are also showing signs of recovery. Key strategic moves included a collaboration with Mitsubishi Electric and the expansion of its small FPGA portfolio, alongside successful capital allocation strategies. Looking forward, Lattice Semiconductor expects continued growth driven by major design wins and AI accelerators, with third-quarter revenue projected between $128 million and $138 million.