The case for & against
Bull & Bear analysis
Bullish
Lattice Semiconductor Corporation (NASDAQ: LSCC) is a leading provider of low-power FPGAs (Field-Programmable Gate Arrays), primarily targeting high-growth markets including communications, industrial automation, automotive, and AI applications. The company is strategically positioned to leverage the ongoing demand for AI-driven solutions, particularly within data centers. With a well-diversified product portfolio and a commitment to innovative technology, Lattice aims to enhance its competitive stance against larger semiconductor firms.
Bull says
- ↑Q1 revenue $170.9M (+42% YoY, +17% QoQ); Q2 guide $175–195M.
- ↑Non-GAAP EPS $0.41 (+86% YoY, +30% QoQ); gross margin 70% (+100bps YoY).
- ↑Record design wins; AI/data-center sales to be ~25% of revenue by 2026.
- ↑AMI acquisition accretive to margins, free cash flow, and EPS.
- ↑High momentum and strong liquidity factors supporting growth sentiment.
- ↑Annual revenue run-rate aim of >$1B by end-2026 underpins upside.
Bear says
- ↓Negative earnings yield and high valuation imply limited upside.
- ↓Poor profitability conversion; low gross margins amid cost pressures.
- ↓Supply-chain constraints in substrates and assembly risk delivery.
- ↓Intense competition from NVIDIA and AMD/Xilinx may erode share.
- ↓Execution risk scaling operations; macro volatility could derail targets.
- ↓Elevated leverage risk and high short interest signal skepticism.
Investment themes with LSCC
Semiconductors↓ -0.94%
Chips powering modern tech and AI growth
AMD · AMAT · LRCX
Earnings Call · Q1 2025 · Mgmt. Guidance
Updated 06-14-2026bullish
Transcript signals
Bull points
- Our non-GAAP gross margin of 69% reflected the resilience of our business and the value of our product in the face of a challenging environment.
- The broad reach of our innovative and differentiated solutions is enabling us to expand our footprint in both general-purpose and AI-optimized servers, as well as in industrial applications such as factory automation and robotics.
- Revenue from our new products continues to grow at a strong double digit pace, both sequentially and year on year. I'm also pleased to report that we remain on track to hit our goal of high teens percentage of new product revenue for the full year 2025.
Bear points
- In general, we're not seeing any material impact from the new tariffs at this time, and we are highly aware of potential indirect impact.
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