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Lattice Semiconductor (LSCC)
NASDAQ:LSCC
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Lattice Semiconductor (LSCC) AI Stock Analysis

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LSCC

Lattice Semiconductor

(NASDAQ:LSCC)

Rating:75Outperform
Price Target:
$69.00
▲(4.37% Upside)
Lattice Semiconductor's overall score is driven by strong technical momentum and a positive earnings call, highlighting growth in key segments and strategic positioning. However, the high P/E ratio suggests overvaluation, and challenges in revenue growth and ROE present risks.
Positive Factors
Market Environment
Lattice Semiconductor Corporation is optimistic about the market environment and the low-power FPGA opportunity, highlighting record starting backlog and the highest book-to-bill ratio in a couple of years.
Product Growth
New products are gaining significant traction and are on track to deliver high teens growth YoY, with expectations to exceed 20% in FY26.
Negative Factors
Industrial & Automotive Segment
The Industrial & Automotive segment is underperforming as Lattice continues to undersupply demand to reduce channel inventory.
Segment Performance
Industrial and automotive sectors declined quarter-over-quarter as Lattice continues to undership true end demand to normalize channel inventory.

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

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, 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 Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with significant growth in key segments, record design wins, and strong financial performance. However, challenges remain in the Industrial and Automotive segment, with a noted sequential decline and slow recovery in automotive.
Q2-2025 Updates
Positive Updates
Record Level of Design Wins
Lattice Semiconductor achieved a record level of design wins, showcasing the increasing adoption of its products across core markets.
Significant Growth in Communications and Compute
The Communications and Compute segment grew by 20% sequentially and 26% year-over-year, marking the highest sequential growth for the segment in 5 years.
Revenue and Profitability Growth
Q2 2025 revenue was $124 million, up 3% from Q1. Gross margin expanded to 69.3%, and adjusted EBITDA increased to 34.1%. Q3 2025 revenue is expected to grow by 7.2% sequentially, the largest in 3 years.
Strong Cash Flow and Stock Buyback
GAAP net cash flow from operating activities increased to $38.5 million, with $46 million of common stock repurchased in the quarter, equating to 100% of operating cash flow in the first half of 2025.
Negative Updates
Sequential Decline in Industrial and Automotive Segment
The Industrial and Automotive segment declined sequentially due to a shift under true demand to normalize channel inventory.
Slow Recovery in Automotive
While the automotive sector is recovering slowly, it remains the smallest portion of the Industrial and Automotive segment.
Company Guidance
During Lattice Semiconductor's Q2 2025 earnings call, the company provided a positive outlook for Q3 2025, projecting a revenue midpoint of $133 million, representing a 7.2% sequential growth, the largest in three years. They also anticipate a strong gross margin midpoint of 69.5% and an EPS midpoint of $0.28, exceeding current expectations. Lattice highlighted their continued success in the Communications and Computing segment, which grew 20% sequentially and 26% year-over-year, driven by robust demand in data center infrastructure and AI-optimized servers. They reported a Q2 2025 revenue of $124 million, a 3% increase over Q1, with a non-GAAP gross margin of 69.3% and an adjusted EBITDA margin of 34.1%. The company is optimistic about future growth, citing record design wins and significant opportunities in AI, industrial robotics, and automotive applications. Lattice emphasized their disciplined execution and strategic positioning as a companion chip provider in the AI infrastructure space.

Lattice Semiconductor Financial Statement Overview

Summary
Lattice Semiconductor shows a stable financial foundation with strong profitability and cash flow metrics. The income statement reveals a slight decline in revenue growth, which is a concern, but the company maintains a healthy gross profit margin. The balance sheet is solid with low leverage, though the declining ROE suggests reduced efficiency. Cash flow is strong, with healthy growth and conversion metrics, supporting liquidity and operational flexibility.
Income Statement
65
Positive
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
72
Positive
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
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue488.63M509.40M737.15M660.36M515.33M408.12M
Gross Profit325.92M340.40M514.67M452.05M321.68M245.31M
EBITDA63.97M106.94M255.37M222.09M131.38M83.26M
Net Income31.64M61.13M259.06M178.88M95.92M47.39M
Balance Sheet
Total Assets808.55M843.90M840.89M798.71M726.49M680.07M
Cash, Cash Equivalents and Short-Term Investments107.16M136.29M128.32M145.72M131.57M182.33M
Total Debt21.90M15.25M16.31M148.82M182.88M193.75M
Total Liabilities121.50M132.97M148.87M311.55M314.86M295.64M
Stockholders Equity687.05M710.93M692.02M487.16M411.63M384.43M
Cash Flow
Free Cash Flow141.21M119.89M236.34M215.47M157.89M79.57M
Operating Cash Flow159.86M140.88M269.59M238.81M167.72M91.69M
Investing Cash Flow-43.13M-37.69M-33.25M-34.93M-89.80M-20.87M
Financing Cash Flow-119.31M-94.46M-253.72M-188.07M-128.61M-8.10M

Lattice Semiconductor Technical Analysis

Technical Analysis Sentiment
Positive
Last Price66.11
Price Trends
50DMA
57.27
Positive
100DMA
52.86
Positive
200DMA
55.18
Positive
Market Momentum
MACD
2.80
Positive
RSI
66.75
Neutral
STOCH
82.41
Negative
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 66.11 is above the 20-day moving average (MA) of 64.23, above the 50-day MA of 57.27, and above the 200-day MA of 55.18, indicating a bullish trend. The MACD of 2.80 indicates Positive momentum. The RSI at 66.75 is Neutral, neither overbought nor oversold. The STOCH value of 82.41 is Negative, 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
81
Outperform
$7.53B34.9424.23%43.69%51.22%
79
Outperform
$8.05B35.4020.30%35.17%0.10%
75
Outperform
$9.05B288.694.57%-22.15%-83.34%
74
Outperform
$11.16B29.966.61%3.74%-8.24%-48.31%
72
Outperform
$8.61B108.422.33%-8.84%
61
Neutral
$35.55B8.91-10.55%1.87%8.47%-8.26%
58
Neutral
$9.67B138.48-5.96%33.50%-197.38%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LSCC
Lattice Semiconductor
66.11
23.62
55.59%
MTSI
MACOM Technology Solutions Holdings
129.86
32.74
33.71%
NVMI
Nova
255.70
59.69
30.45%
RMBS
Rambus
74.81
36.05
93.01%
SWKS
Skyworks Solutions
75.20
-20.90
-21.75%
QRVO
Qorvo
92.89
-12.38
-11.76%

Lattice Semiconductor Corporate Events

Executive/Board ChangesStock BuybackBusiness Operations and StrategyFinancial Disclosures
Lattice Semiconductor Announces New Leadership Appointments
Positive
Feb 10, 2025

On February 10, 2025, Lattice Semiconductor announced key leadership changes with the appointment of Lorenzo A. Flores as Senior Vice President and Chief Financial Officer, and Tonya Stevens as Corporate Vice President and Chief Accounting Officer. The company also reported its fourth quarter and full year 2024 financial results, showing a GAAP revenue of $117.4 million for Q4 and $509.4 million for the year, with significant achievements in operational efficiency and strategic product development. Key highlights included record design wins, the expansion of the Avant and Nexus product lines, and the extension of a stock repurchase program. The company’s strategic realignment and product roadmap enhancements signal confidence in future growth and market opportunities.

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: Aug 20, 2025