In the dynamic world of semiconductors, Texas Instruments Incorporated (TXN) and Lattice Semiconductor Corporation (LSCC) stand out as key players. Both companies operate within the same industry, focusing on innovative semiconductor solutions, yet they adopt distinct strategies and cater to different market segments. As we delve into their respective approaches to technology and market presence, I aim to guide you in determining which company may offer the most compelling investment opportunity.
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Company Overview
Texas Instruments Incorporated Overview
Texas Instruments Incorporated (TXN), headquartered in Dallas, Texas, has been a key player in the semiconductor industry since its inception in 1930. The company’s mission is to empower engineers and designers by providing cutting-edge semiconductor solutions that enhance electronics worldwide. With a market capitalization of approximately $153B, Texas Instruments specializes in two primary segments: Analog and Embedded Processing. Their Analog segment develops products for managing power and signal processing, catering to diverse markets such as industrial, automotive, and personal electronics. The Embedded Processing segment focuses on microcontrollers and digital signal processors, essential for a range of electronic applications. TXN’s commitment to innovation and quality positions it as a trusted partner in the technology sector.
Lattice Semiconductor Corporation Overview
Lattice Semiconductor Corporation (LSCC), founded in 1983 and based in Hillsboro, Oregon, focuses on developing and selling semiconductor products globally. With a market capitalization around $9.6B, Lattice’s mission is to deliver low-power, small-footprint solutions that enable smarter, more connected devices. The company specializes in field programmable gate arrays (FPGAs) and video connectivity products, serving key markets such as communications, computing, and automotive. Lattice’s innovative approach includes licensing its technology, enhancing its presence across various industries. The company’s agility and focus on niche markets have allowed it to carve out a significant position in the semiconductor landscape.
Key similarities and differences
Both Texas Instruments and Lattice Semiconductor operate within the semiconductor industry, yet their business models diverge significantly. Texas Instruments emphasizes a broader range of products and applications, servicing multiple sectors, while Lattice Semiconductor focuses on specific niches, such as low-power FPGAs and video connectivity. Additionally, Texas Instruments has a more established market presence and larger workforce compared to Lattice, which is smaller and more specialized.
Income Statement Comparison
In this section, I present a detailed comparison of the most recent income statements for Texas Instruments Incorporated (TXN) and Lattice Semiconductor Corporation (LSCC), allowing investors to assess their financial performance.
| Metric | Texas Instruments (TXN) | Lattice Semiconductor (LSCC) |
|---|---|---|
| Market Cap | 153B | 9.6B |
| Revenue | 15.6B | 509M |
| EBITDA | 7.54B | 107M |
| EBIT | 5.96B | 61M |
| Net Income | 4.80B | 61M |
| EPS | 5.24 | 0.44 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, Texas Instruments experienced a notable decline in revenue and net income, down from 17.5B and 6.5B respectively in the previous year. This trend indicates challenges in maintaining growth, which may stem from increased competition and market saturation. Conversely, Lattice Semiconductor reported a decrease in revenue from 737M to 509M, alongside a slight improvement in net income, suggesting operational efficiency. Analyzing the margins, TXN’s EBITDA margin remains robust, while LSCC demonstrates potential for margin enhancement despite lower absolute figures, indicating varied stages of growth and market positioning between the two firms.
Financial Ratios Comparison
The table below provides a comparative analysis of the recent financial ratios for Texas Instruments Incorporated (TXN) and Lattice Semiconductor Corporation (LSCC).
| Metric | TXN | LSCC |
|---|---|---|
| ROE | 28.39% | 8.60% |
| ROIC | 14.75% | 7.75% |
| P/E | 35.63 | 132.74 |
| P/B | 10.12 | 11.41 |
| Current Ratio | 4.12 | 3.66 |
| Quick Ratio | 2.88 | 2.62 |
| D/E | 0.80 | 0.02 |
| Debt-to-Assets | 38.29% | 1.81% |
| Interest Coverage | 10.76 | 129.54 |
| Asset Turnover | 0.44 | 0.60 |
| Fixed Asset Turnover | 1.38 | 7.62 |
| Payout Ratio | 99.92% | 0% |
| Dividend Yield | 2.80% | 0% |
Interpretation of Financial Ratios
Texas Instruments exhibits strong profitability and operational efficiency, reflected in its high ROE and ROIC, alongside a solid current and quick ratio. However, its elevated P/E ratio suggests that the stock may be overvalued relative to earnings. In contrast, Lattice Semiconductor has a low debt-to-equity ratio, indicating minimal leverage and strong interest coverage, but its high P/E ratio raises concerns about potential overvaluation as well. Investors should weigh these factors while considering their investment strategies.
Dividend and Shareholder Returns
Texas Instruments (TXN) continues to reward shareholders with a strong annual dividend yield of 2.8% and a payout ratio of 99.9%. However, this high payout could raise concerns about sustainability, especially if cash flow fluctuates. Lattice Semiconductor (LSCC), on the other hand, does not pay dividends, focusing on reinvestment for growth in a high-tech environment. Both companies engage in share buybacks, indicating a commitment to returning value to shareholders. Overall, TXN’s dividends and LSCC’s reinvestment strategy both align with long-term value creation, albeit through different approaches.
Strategic Positioning
Texas Instruments (TXN) holds a significant market share in the analog and embedded processing semiconductor segments, leveraging its broad product portfolio to mitigate competitive pressure. Lattice Semiconductor (LSCC), while smaller with a market cap of 9.6B, specializes in programmable logic devices and faces strong competition from larger firms. Both companies must navigate technological disruptions in a rapidly evolving industry, making innovation and adaptability crucial for maintaining their market positions.
Stock Comparison
Over the past year, the stock performances of Texas Instruments Incorporated (TXN) and Lattice Semiconductor Corporation (LSCC) have exhibited notable price movements and trading dynamics, reflecting their respective market positions.
Trend Analysis
Texas Instruments Incorporated (TXN): The stock has experienced a percentage change of +1.92% over the past 12 months, indicating a bullish trend; however, this trend is showing signs of deceleration. The stock reached a high of $221.25 and a low of $147.60, with a standard deviation of 16.88, suggesting some volatility in price movements. In the recent period from September 14, 2025, to November 30, 2025, TXN saw a decline of -7.85%, reflecting a downward slope.
Lattice Semiconductor Corporation (LSCC): LSCC has performed strongly with an overall percentage change of +8.7% over the past year, categorizing it as bullish. The trend is also exhibiting deceleration, with a high of $80.45 and a low of $39.03, and a standard deviation of 9.95. In the recent analysis period from September 14, 2025, to November 30, 2025, LSCC showed a positive change of +9.0%, indicating a relatively stable trend.
In conclusion, both stocks display bullish characteristics over the longer term, yet recent movements suggest caution, particularly for TXN, which has experienced a notable decline.
Analyst Opinions
Recent evaluations indicate a consensus recommendation of “Buy” for Texas Instruments (TXN) and “Hold” for Lattice Semiconductor (LSCC). Analysts like those from reputable firms have rated TXN with a “B” due to strong return metrics and manageable debt levels. In contrast, LSCC received a “B-” primarily because of its moderate performance in return on equity and earnings. Overall, while TXN shows robust growth potential, LSCC is viewed as stable, warranting caution but not immediate selling.
Stock Grades
I have gathered the latest stock ratings for Texas Instruments Incorporated (TXN) and Lattice Semiconductor Corporation (LSCC). These ratings come from reputable grading companies, ensuring their reliability.
Texas Instruments Incorporated Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Susquehanna | maintain | Positive | 2025-10-22 |
| Wells Fargo | maintain | Equal Weight | 2025-10-22 |
| Truist Securities | maintain | Hold | 2025-10-22 |
| Rosenblatt | maintain | Buy | 2025-10-22 |
| Goldman Sachs | maintain | Buy | 2025-10-22 |
| JP Morgan | maintain | Overweight | 2025-10-22 |
| Cantor Fitzgerald | maintain | Neutral | 2025-10-22 |
| Stifel | maintain | Hold | 2025-10-22 |
| TD Cowen | maintain | Buy | 2025-10-22 |
| Mizuho | downgrade | Underperform | 2025-10-20 |
Lattice Semiconductor Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Rosenblatt | maintain | Buy | 2025-11-04 |
| Needham | maintain | Buy | 2025-11-04 |
| Benchmark | maintain | Buy | 2025-11-04 |
| Stifel | maintain | Buy | 2025-11-04 |
| Baird | maintain | Outperform | 2025-11-04 |
| Susquehanna | maintain | Positive | 2025-10-22 |
| Keybanc | maintain | Overweight | 2025-09-30 |
| Needham | maintain | Buy | 2025-09-22 |
| Benchmark | maintain | Buy | 2025-09-11 |
| Benchmark | maintain | Buy | 2025-08-05 |
Overall, both companies show a consistent trend with multiple maintain ratings, particularly for TXN, where the majority of analysts continue to support their existing grades despite one downgrade. Meanwhile, LSCC maintains a strong buy sentiment across several firms.
Target Prices
The consensus target prices for the companies listed below indicate analysts’ expectations for future performance.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Texas Instruments Incorporated (TXN) | 245 | 145 | 190.45 |
| Lattice Semiconductor Corporation (LSCC) | 85 | 65 | 79 |
For Texas Instruments (TXN), the consensus target price of 190.45 suggests a potential upside compared to its current price of 168.15. Similarly, Lattice Semiconductor (LSCC) has a consensus target of 79 against its current price of 70.21, indicating positive analyst sentiment.
Strengths and Weaknesses
Below is a concise table summarizing the strengths and weaknesses of Texas Instruments Incorporated (TXN) and Lattice Semiconductor Corporation (LSCC).
| Criterion | Texas Instruments (TXN) | Lattice Semiconductor (LSCC) |
|---|---|---|
| Diversification | Strong across sectors | Focused on niche markets |
| Profitability | Net margin: 30.68% | Net margin: 12.00% |
| Innovation | High investment in R&D | Agile in product development |
| Global presence | Operates worldwide | Primarily in the Americas and Asia |
| Market Share | Significant in analog ICs | Growing in FPGA market |
| Debt level | Moderate (Debt/Equity: 0.80) | Very low (Debt/Equity: 0.02) |
Key takeaways highlight Texas Instruments’ robust profitability and global presence, while Lattice Semiconductor excels with minimal debt and agility in innovation. Investors should consider these factors when deciding on their investment strategies.
Risk Analysis
The following table outlines the key risks associated with Texas Instruments (TXN) and Lattice Semiconductor (LSCC):
| Metric | Texas Instruments (TXN) | Lattice Semiconductor (LSCC) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | High |
In my analysis, the most pressing risks include market fluctuations affecting both companies, with Lattice facing higher exposure due to its smaller size. Geopolitical concerns, particularly for Lattice, could significantly impact its operations, given its global supply chain. Regulatory compliance also poses a challenge, especially for Lattice, which operates in diverse markets.
Which one to choose?
In comparing Texas Instruments (TXN) and Lattice Semiconductor (LSCC), both companies show promising growth potential, yet with notable differences. TXN boasts a higher gross profit margin (58%) and net profit margin (31%) compared to LSCC’s gross (67%) and net margins (12%), indicating TXN’s stronger profitability despite its higher valuation ratios, such as a P/E ratio of 36.67. LSCC, however, demonstrates exceptional revenue growth, increasing 8.7% over the past year, which may appeal to growth-oriented investors.
From an analyst perspective, TXN holds a rating of “B”, while LSCC has a slightly lower “B-“. Investors focusing on stability and consistent income may prefer TXN, while those prioritizing higher growth potential might lean towards LSCC, despite its higher price-to-earnings ratio.
Risks include potential supply chain disruptions and competitive pressures in the semiconductor industry.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Texas Instruments Incorporated and Lattice Semiconductor Corporation to enhance your investment decisions:
