Stock of the Day

November 30, 2021

Lattice Semiconductor (LSCC)

$115.34
+$0.94 (+0.8%)
Market Cap: $15.67B

About Lattice Semiconductor

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 Lattice Certus and ECP, Mach, iCE, 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 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 markets. Lattice Semiconductor Corporation was incorporated in 1983 and is headquartered in Hillsboro, Oregon.

Today's Trend

Lattice Semiconductor Corporation (NASDAQ: LSCC) shares have been relatively steady to slightly higher as strong quarterly results, AI-related demand and favorable analyst commentary offset concerns about valuation, acquisition integration and insider selling.

  • Strong Q2 performance and upbeat outlook: Lattice reported record second-quarter revenue of $201.1 million and EPS of $0.53, exceeding consensus estimates of $185.5 million and $0.44, respectively. Revenue increased 62.2% year over year. Management’s third-quarter adjusted EPS guidance of $0.54–$0.58 was also viewed favorably, supported by AI infrastructure demand and an industrial recovery. Lattice's Q2 Earnings Top Estimates on AI Demand and Record Revenue
  • AI and AMI acquisition remain key growth catalysts: Analysts say the acquisition of AMI expands Lattice’s exposure to secure management, control and platform firmware for AI infrastructure. The company also cited a backlog extending through 2027, potentially improving revenue visibility as data-center demand grows. How the AMI Deal Could Expand Lattice's AI Infrastructure Edge
  • Analyst support is strengthening: KeyBanc initiated or reiterated a Buy rating, while Rosenblatt reaffirmed its Buy rating. Needham raised its price target from $140 to $160 and maintained a Buy rating, adding to the positive response to the earnings report. Lattice Semiconductor Receives a Buy from KeyBanc
  • Technical momentum is mixed: A reported “golden cross” and a move above the 20-day moving average suggest improving near-term momentum, but the stock remains below its 50-day moving average.
  • Premium valuation and transaction risks may limit gains: With a high earnings multiple, investors must price in substantial future growth. The AMI deal also introduces integration, financing and potential dilution concerns, which may explain why the stock did not fully follow the earnings and target-price upgrades. LSCC Stock Offers AI Growth but Demands a Premium Valuation Trade-Off
  • Insider selling is a sentiment headwind: Reported insider activity showed selling but no purchases over the past six months, potentially adding caution among investors after the stock’s substantial run-up.
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