Lattice Semiconductor (LSCC)
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-09
$115.45-1.74%
Close 2026-09-09 · 1-day change
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-09
Intact: The reason to own it still holds.
Lattice Semiconductor grows revenue about 42% year over year. Profit margins are near 70%, showing operational strength. Operating income rose from $7M to $26M in one year. The company benefits from strong demand in data centers and a positive market cycle.
The recent sharp selloff and acquisition financing raise balance sheet risks. High valuation with a PE over 100 times earnings pressures upside. Growth may slow if competitive risks or market conditions worsen.
The stock trades about 33% above our fair value near $99 and 32% below the Street median target of $145. Analysts expect about 36% revenue growth, which is close to recent delivery. Our view is more cautious on valuation and growth sustainability.
Breaks if: Material covenant breach or credit downgrade reported
Breaks if: Gross margin falls below 68% next quarter
Breaks if: Operating income falls below $20M next 4 quarters
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable growth story with some volatility. The current thesis state is intact, supported by strong revenue growth and margin improvement, despite recent earnings misses.
The market currently prices LSCC at an expensive valuation compared to its peers, reflecting high expectations. There is an expectations gap indicating that the market may be cautious about future performance due to recent execution quality concerns.
Fundamentals are likely to remain strong in the near term, as management is on track to achieve significant revenue and profitability targets. However, there is a low probability of missing expectations again, which could impact sentiment.
The long-term thesis hinges on management's ability to maintain growth momentum and profitability. Key factors include guidance on future earnings and the performance of sector leaders, as well as potential changes in interest rates.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the view of continued growth. The company is on track to achieve a $1 billion annual revenue run rate by the end of 2026. There are no new threats identified that could weaken this outlook.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 36% next 4 quarters
Sustain and accelerate revenue growth across end markets, driven by new products and design wins.
Stated in 3 of last 3 quarters. Revenue grew 42% year-over-year in 2026-Q1 and 62% year-over-year in 2026-Q2, driven by new product growth and design wins across key markets. Management is delivering sustained revenue growth consistent with stated priorities.
“Record new product revenue growth up more than 60% year over year”
“Record first quarter revenue growth led by increased demand across all end markets”
“Accelerated new product revenue growth approximately 70% compared to 2024”
Over the next 1 to 3 years, LSCC's performance will depend on continued execution and external market conditions. Not investment advice.