Lattice Semiconductor (LSCC) AI Stock Analysis

• Market Cap: $9.16B
• Dividend Yield: N/A
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): 303.9
• Beta (1Y): 2.10
• Revenue Growth: -22.15%
• EPS Growth: -83.34%
• Country: US
• Employees: 1,110
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.24
• Shares Outstanding: 136,895,570
• 10 Day Avg. Volume: 1,441,679
• 30 Day Avg. Volume: 2,229,666
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 13.96
• Enterprise Value/Gross Profit: 20.93
• Enterprise Value/Ebitda: 106.62
• 1Y Price Target: $73.09
• Price Target Upside: 9.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 69 Neutral
• Price Target: $76.00 ▲(13.60% Upside)

Lattice Semiconductor's overall score reflects strong financial performance and a positive earnings outlook, tempered by valuation concerns and mixed technical indicators. The company's strategic gains in AI and data center infrastructure are significant positives, but the high P/E ratio and challenges in certain segments present risks.

Positive Factors

Strong Cash Flow

The strong cash flow growth and efficient cash conversion support Lattice's liquidity and operational flexibility, enabling strategic investments and resilience against market fluctuations.

Record Design Wins

Record design wins indicate strong market demand and competitive positioning, enhancing Lattice's growth prospects and reinforcing its leadership in key segments like AI and data centers.

Growth in Communications and Compute

Significant growth in this segment reflects robust demand for Lattice's solutions, particularly in AI and data centers, supporting long-term revenue expansion and market leadership.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth could signal challenges in maintaining market momentum and may impact future profitability if not addressed through strategic initiatives.

Challenges in Industrial and Automotive Segment

Challenges in this segment highlight potential vulnerabilities in Lattice's market diversification, requiring strategic focus to stabilize and grow these areas.

Declining ROE

A declining ROE suggests reduced efficiency in generating profits from equity, potentially impacting investor confidence and long-term financial performance.

Lattice Semiconductor Business Overview & Revenue Model

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.

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 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

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 2021	Dec 2020
Income Statement
Total Revenue	488.63M	509.40M	737.15M	660.36M	515.33M	408.12M
Gross Profit	325.92M	340.40M	514.67M	452.05M	321.68M	245.31M
EBITDA	63.97M	106.94M	255.37M	222.09M	131.38M	83.26M
Net Income	31.64M	61.13M	259.06M	178.88M	95.92M	47.39M
Balance Sheet
Total Assets	808.55M	843.90M	840.89M	798.71M	726.49M	680.07M
Cash, Cash Equivalents and Short-Term Investments	107.16M	136.29M	128.32M	145.72M	131.57M	182.33M
Total Debt	21.90M	15.25M	16.31M	148.82M	182.88M	193.75M
Total Liabilities	121.50M	132.97M	148.87M	311.55M	314.86M	295.64M
Stockholders Equity	687.05M	710.93M	692.02M	487.16M	411.63M	384.43M
Cash Flow
Free Cash Flow	141.21M	119.89M	236.34M	215.47M	157.89M	79.57M
Operating Cash Flow	159.86M	140.88M	269.59M	238.81M	167.72M	91.69M
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: Neutral
• Last Price: 66.90
• 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 66.9 is below the 20-day moving average (MA) of 71.63, below the 50-day MA of 68.47, and above the 200-day MA of 57.32, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 14.84 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	83 Outperform	$9.65B	46.51	24.23%	―	43.69%	51.22%
RMBS	76 Outperform	$10.16B	48.09	20.30%	―	35.17%	0.10%
SWKS	72 Outperform	$10.98B	30.19	6.61%	3.71%	-8.24%	-48.31%
LSCC	69 Neutral	$9.16B	303.93	4.57%	―	-22.15%	-83.34%
QRVO	67 Neutral	$8.40B	107.45	2.33%	―	-8.84%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MTSI	53 Neutral	$10.12B	-138.27	-5.96%	―	33.50%	-197.38%

Lattice Semiconductor Corporate Events

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.