Lattice Semiconductor
LSCC
$128.32
-1.32%
Lattice Semiconductor Corp is a developer of semiconductor technology, primarily known for its low-power field-programmable gate arrays (FPGAs), which it distributes through products, solutions, and licenses across consumer, communications, and industrial markets. The company holds a distinct niche as a leader in low-power, small-form-factor FPGAs, differentiating itself from larger competitors like Xilinx and Intel by focusing on edge computing and power efficiency. Currently, the stock is under the spotlight due to a remarkable 123.5% surge over the past year, driven by strong revenue growth (42.2% YoY in the latest quarter) and renewed investor enthusiasm for edge AI and adaptive computing solutions. The narrative centers on whether Lattice can sustain its growth momentum and expand margins as it scales its product portfolio and capitalizes on the proliferation of AI-enabled devices at the network edge.…
LSCC
Lattice Semiconductor
$128.32
Investment Opinion: Should I buy LSCC Today?
Based on the analysis, LSCC is rated a Hold. The strong revenue growth and margin expansion are offset by an extremely high valuation that leaves little room for error. The average analyst target of $148.33 implies 15.3% upside, but the low target of $105 suggests 18.4% downside, creating an asymmetric risk-reward profile. The Strong Buy consensus is noted, but the valuation premium warrants caution.
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LSCC 12-Month Price Forecast
The AI assessment is neutral with medium confidence. While the company's growth metrics are impressive, the valuation is stretched, and the risk-reward is balanced. The stock could go either way depending on execution and market conditions. I would upgrade to bullish if revenue growth accelerates above 50% and margins expand, or downgrade to bearish if growth slows below 25% or margins contract.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Lattice Semiconductor's 12-month outlook, with a consensus price target around $164.92 and implied upside of +28.5% versus the current price.
Average Target
$164.92
0 analysts
Implied Upside
+28.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$125 - $180
Analyst target range
The target price range spans from a low of $105.00 to a high of $175.00, representing a wide spread of 66.7% from low to high, which signals considerable uncertainty about the stock's future trajectory. The high target of $175.00 implies a 36% upside and likely assumes continued revenue growth acceleration, margin expansion, and successful penetration of AI edge markets. The low target of $105.00 suggests an 18% downside, possibly pricing in a cyclical downturn in semiconductor demand or competitive pressures from larger FPGA players. The wide range reflects the high volatility (beta of 1.8) and the market's divergent views on whether Lattice can sustain its growth premium, but the overall bullish tilt suggests analysts have high conviction in the company's long-term prospects.
Bulls vs Bears: LSCC Investment Factors
Lattice Semiconductor presents a compelling growth story with accelerating revenue, expanding gross margins, and a strong balance sheet, but the valuation is stretched to extreme levels. The bull case rests on continued momentum in edge AI and successful margin expansion, while the bear case highlights the risk of a growth slowdown or multiple compression. Currently, the evidence slightly favors the bulls given the strong fundamental trajectory, but the key tension is whether the company can deliver the earnings growth implied by its forward PE. If revenue growth persists above 30% and operating margins approach 20%, the stock could justify its premium; otherwise, a correction toward the low target is likely.
Bullish
- Revenue Growth Accelerating: Q1 2026 revenue surged 42.2% YoY to $170.9M, up from $145.8M in Q4 2025 (24.2% YoY). This marks the fourth consecutive quarter of sequential growth, indicating a strong inflection in demand for low-power FPGAs.
- Gross Margin Expansion: Gross margin improved to 68.8% in Q1 2026 from 62.4% in Q4 2025, reflecting favorable product mix and operational leverage. This is a key driver of profitability as the company scales.
- Strong Analyst Conviction: With a Strong Buy consensus (mean rating 1.5) and an average target price of $148.33, analysts see 15.3% upside from the current price of $128.70. The high target of $175 implies 36% upside, reflecting confidence in sustained growth.
- Healthy Balance Sheet: Debt-to-equity is only 0.11, and the current ratio is 3.09, indicating ample liquidity and low financial risk. This provides flexibility to invest in R&D and weather potential downturns.
Bearish
- Extreme Valuation Premium: Trailing PE is 3,495x, and forward PE is 55.4x, far above the semiconductor industry average. The stock trades at 20.6x sales and 191.7x EV/EBITDA, implying the market prices in flawless execution and sustained hyper-growth.
- Thin Operating Margins: Operating margin is only 15.6% in Q1 2026, despite high gross margins, due to heavy R&D and SGA spending. This leaves little room for error if revenue growth slows or costs rise.
- High Volatility and Beta: With a beta of 1.8, the stock is highly sensitive to market swings. The 27.25% max drawdown over the past year highlights the risk of sharp corrections, especially in a rising rate environment.
- Analyst Target Range Wide: The spread between low ($105) and high ($175) targets is 66.7%, indicating significant uncertainty. The low target implies 18% downside, reflecting concerns about cyclicality and competition.
LSCC Technical Analysis
Lattice Semiconductor is in a powerful long-term uptrend, with the stock up 123.5% over the past year, dramatically outperforming the S&P 500's 21.5% gain. The current price of $128.70 sits at 71.6% of its 52-week range (between $58.53 low and $157.01 high), indicating the stock is still in the upper half of its range but has pulled back from its highs. This positioning suggests strong momentum but also potential for consolidation after a massive run, as the stock trades 18% below its 52-week high of $157.01.
Beta
1.80
1.80x market volatility
Max Drawdown
-27.3%
Largest decline past year
52-Week Range
$59-$157
Price range past year
Annual Return
+108.6%
Cumulative gain past year
| Period | LSCC Return | S&P 500 |
|---|---|---|
| 1m | -6.6% | +2.4% |
| 3m | +2.3% | +4.7% |
| 6m | +21.3% | +11.7% |
| 1y | +108.6% | +21.3% |
| ytd | +63.2% | +13.4% |
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LSCC Fundamental Analysis
Lattice's revenue trajectory has been robust, with the latest quarter (Q1 2026) reporting revenue of $170.9 million, a 42.2% year-over-year increase, accelerating from the prior quarter's $145.8 million (which was up 24.2% YoY). The multi-quarter trend shows a clear acceleration: Q2 2025 revenue was $124.0 million, Q3 2025 was $133.3 million, Q4 2025 was $145.8 million, and Q1 2026 jumped to $170.9 million, indicating a strong growth inflection. The company's gross margin remains high at 68.8% in Q1 2026, up from 62.4% in Q4 2025, reflecting a favorable product mix and operational leverage. However, operating margin is still thin at 15.6% in Q1 2026, though it has improved dramatically from negative levels in prior quarters, signaling that profitability is scaling with revenue.
Quarterly Revenue
$170897000.0B
2026-04
Revenue YoY Growth
+42.2%
YoY Comparison
Gross Margin
68.8%
Latest Quarter
Free Cash Flow
$161239000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is LSCC Overvalued?
Given that Lattice's trailing twelve-month net income is positive (EPS of $0.0003), the PE ratio is the primary valuation metric, but it is extremely elevated at 3,495.6x trailing, making it less meaningful. The forward PE of 55.4x is more instructive, implying the market expects significant earnings growth, with analysts projecting EPS of $3.37 for the next fiscal year. The gap between trailing and forward PE underscores the market's anticipation of a massive earnings inflection, which is supported by the recent revenue acceleration and margin expansion.
PE
3495.6x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 24x~256x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
191.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include the company's thin operating margin of 15.6% despite a high gross margin of 68.8%, leaving limited buffer for cost overruns or pricing pressure. The debt-to-equity ratio is low at 0.11, but the company's reliance on continued revenue growth to justify its valuation is a significant risk; if growth decelerates, the stock could face severe multiple compression. Additionally, the negative PEG ratio (-36.8) suggests that earnings growth may not keep pace with the valuation, and the high EV/EBITDA of 191.7x indicates the market is pricing in years of exceptional profitability.