Lattice Semiconductor Corporation is revolutionizing the semiconductor landscape, powering innovations that touch our everyday lives—from smart devices to advanced automotive systems. Known for its cutting-edge field programmable gate arrays and video connectivity solutions, Lattice stands at the forefront of technology, continually pushing boundaries in quality and performance. As I assess the company’s current market valuation and growth potential, I can’t help but wonder: do Lattice’s fundamentals still support its impressive market standing?
Table of contents
Company Description
Lattice Semiconductor Corporation (NASDAQ: LSCC), founded in 1983 and headquartered in Hillsboro, Oregon, specializes in developing and selling semiconductor products across Asia, Europe, and the Americas. The company is a leader in the semiconductor industry, offering a diverse range of field programmable gate arrays (FPGAs), including the Certus-NX and ECP families, as well as application-specific standard products for video connectivity. Lattice primarily serves original equipment manufacturers in the communications, computing, consumer, and industrial sectors. With a strategic focus on innovation and a robust technology licensing portfolio, Lattice is well-positioned to shape the future of the semiconductor landscape.
Fundamental Analysis
In this section, I will analyze Lattice Semiconductor Corporation’s income statement, financial ratios, and dividend payout policy to assess its investment potential.
Income Statement
The following table summarizes the income statement for Lattice Semiconductor Corporation (LSCC) over the last five fiscal years, providing insights into the company’s financial performance.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 408.1M | 515.3M | 660.4M | 737.2M | 509.4M |
| Cost of Revenue | 162.8M | 193.7M | 208.3M | 222.5M | 169.0M |
| Operating Expenses | 192.9M | 220.9M | 264.7M | 302.4M | 305.9M |
| Gross Profit | 245.3M | 321.7M | 452.1M | 514.7M | 340.4M |
| EBITDA | 83.3M | 133.9M | 226.3M | 255.4M | 106.9M |
| EBIT | 52.2M | 102.9M | 190.4M | 214.2M | 60.7M |
| Interest Expense | 3.7M | 2.7M | 4.1M | 0 | 0 |
| Net Income | 47.4M | 95.9M | 178.9M | 259.1M | 61.1M |
| EPS | 0.35 | 0.7 | 1.3 | 1.88 | 0.44 |
| Filing Date | 2021-02-26 | 2022-02-23 | 2023-02-17 | 2024-02-16 | 2025-02-14 |
Interpretation of Income Statement
Examining Lattice Semiconductor’s income statement reveals a significant decline in revenue from 2023 to 2024, dropping from 737.2M to 509.4M, which raises concerns about market dynamics or competitive pressures. Despite this revenue drop, gross profit margins improved due to reduced cost of revenue, indicating better cost management. The net income also saw a notable decline, reflecting the challenges faced during the year. The EPS decrease signals a need for investors to monitor future performance closely, as the recent year’s results suggest potential volatility and require strategic adjustments moving forward.
Financial Ratios
The following table presents the key financial ratios of Lattice Semiconductor Corporation (LSCC) for the years 2021 to 2024.
| Ratios | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Net Margin | 18.61% | 27.09% | 35.14% | 12.00% |
| ROE | 23.30% | 36.72% | 37.44% | 8.60% |
| ROIC | 15.40% | 27.15% | 34.48% | 7.75% |
| P/E | 109.75 | 49.81 | 36.67 | 132.74 |
| P/B | 25.58 | 18.29 | 13.73 | 11.41 |
| Current Ratio | 2.84 | 2.98 | 3.78 | 3.66 |
| Quick Ratio | 2.20 | 2.11 | 2.76 | 2.62 |
| D/E | 0.44 | 0.30 | 0.02 | 0.02 |
| Debt-to-Assets | 25.17% | 18.63% | 1.94% | 1.81% |
| Interest Coverage | 36.82 | 45.19 | – | 129.54 |
| Asset Turnover | 0.71 | 0.83 | 0.88 | – |
| Fixed Asset Turnover | 8.32 | 10.13 | 11.51 | 7.62 |
| Dividend Yield | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
Lattice Semiconductor Corporation (LSCC) exhibits strong liquidity with a current ratio of 3.66 and a quick ratio of 2.62, indicating robust short-term financial health. The solvency ratio stands at 0.81, reflecting a low level of debt, which is favorable. Profitability ratios are also promising, with a net profit margin of 12.00% and an EBITDA margin of 20.99%, although the price-to-earnings ratio at 132.74 suggests overvaluation relative to earnings. Efficiency ratios like receivables turnover (6.28) and asset turnover (0.60) highlight effective asset management, though the inventory turnover of 1.63 may indicate a potential concern regarding inventory management.
Evolution of Financial Ratios
Over the past five years, LSCC has shown significant improvement in profitability and efficiency, with net profit margins increasing from 18.61% in 2021 to 12.00% in 2024. Meanwhile, the current ratio has remained strong, fluctuating between 2.84 and 3.78, indicating consistent liquidity management.
Distribution Policy
Lattice Semiconductor Corporation (LSCC) does not pay dividends, reflecting its focus on reinvesting in growth and innovation. The company is in a high-growth phase, prioritizing research and development over shareholder payouts. Additionally, LSCC engages in share buybacks, which can enhance shareholder value by reducing share dilution. This strategy aligns with long-term value creation, as it supports future growth potential while managing risk effectively.
Sector Analysis
Lattice Semiconductor Corporation operates in the semiconductor industry, specializing in field programmable gate arrays and video connectivity products, facing competition from major players while leveraging its innovative technology and diverse market reach.
Strategic Positioning
Lattice Semiconductor Corporation (LSCC) holds a significant market share in the semiconductor industry, particularly with its innovative field programmable gate arrays (FPGAs). As of 2025, the company has successfully established itself against competitors, leveraging its diverse product families like Certus-NX and ECP. However, competitive pressure remains high, with rapid technological advancements pushing the industry towards more integrated solutions. Additionally, the potential for technological disruption is pervasive, compelling LSCC to continually innovate and adapt to maintain its market position. As I analyze these factors, I remain cautious about the inherent risks associated with such a dynamic sector.
Revenue by Segment
The following pie chart illustrates the revenue distribution by segment for Lattice Semiconductor Corporation for the fiscal year 2022.
In 2022, Lattice Semiconductor’s revenue was primarily driven by the “License and Service” segment, which reported $17.1M. Notably, revenue from this segment has shown a decline from $20.5M in 2021. The absence of detailed data on other segments indicates a potential area of concern, as the company may be increasingly dependent on this particular revenue source. The overall trend suggests that while the company has maintained its focus on licensing, it may need to diversify its revenue streams to mitigate risks associated with declining service income.
Key Products
Lattice Semiconductor Corporation offers a range of innovative semiconductor products designed to meet the needs of various markets. Below is a table summarizing their key products:
| Product | Description |
|---|---|
| Certus-NX | A family of low-power FPGAs optimized for edge computing applications, providing flexibility and efficiency for developers. |
| ECP | High-performance FPGAs tailored for diverse applications in communications and industrial markets, ensuring rapid design and deployment. |
| Mach | Versatile, small-footprint FPGAs ideal for consumer electronics and automotive applications, combining performance with cost-effectiveness. |
| iCE40 | Ultra-low power FPGAs designed for mobile and portable devices, enabling advanced features while conserving battery life. |
| CrossLink | A video connectivity solution that supports high-quality video processing and routing for various multimedia applications. |
| Video Connectivity | Application-specific standard products that enhance video signal processing, providing seamless integration for OEMs in consumer and professional markets. |
These products showcase Lattice’s commitment to innovation in the semiconductor industry, catering to a wide array of applications and customer needs.
Main Competitors
The competitive landscape in the semiconductor industry is characterized by several key players, each contributing to various segments of the market.
| Company | Market Cap |
|---|---|
| MACOM Technology Solutions Holdings, Inc. | 13.80B |
| Tower Semiconductor Ltd. | 12.74B |
| Lattice Semiconductor Corporation | 10.79B |
| MKS Inc. | 10.94B |
| Rambus Inc. | 10.94B |
| Amkor Technology, Inc. | 10.69B |
| Skyworks Solutions, Inc. | 10.31B |
| Nova Ltd. | 9.57B |
| InterDigital, Inc. | 9.14B |
| Qorvo, Inc. | 8.31B |
| monday.com Ltd. | 8.03B |
Lattice Semiconductor Corporation operates in a competitive environment alongside major players such as MACOM and Tower Semiconductor, primarily in the global semiconductor market. The focus on advanced technology and innovation remains a common thread among these competitors.
Competitive Advantages
Lattice Semiconductor Corporation (LSCC) possesses several competitive advantages that position it strongly within the semiconductor industry. Its diverse product portfolio, which includes field programmable gate arrays (FPGAs) and application-specific standard products, caters to a wide range of markets such as communications, computing, and automotive. The company’s focus on innovation, particularly in areas like low-power consumption and advanced video connectivity, opens doors to new opportunities. Looking ahead, Lattice is well-positioned to expand into emerging markets and introduce next-generation products, enhancing its growth potential and market share.
SWOT Analysis
This SWOT analysis aims to provide a clear overview of Lattice Semiconductor Corporation’s strategic position.
Strengths
- Strong market position
- Diverse product portfolio
- Innovative technology
Weaknesses
- High beta (1.728)
- No dividend payments
- Dependence on specific markets
Opportunities
- Growing semiconductor demand
- Expansion into new markets
- Advancements in technology
Threats
- Intense competition
- Supply chain disruptions
- Economic downturn risks
The overall SWOT assessment indicates that while Lattice Semiconductor has solid strengths and opportunities to capitalize on, it must also address its weaknesses and prepare for potential threats. A strategic focus on innovation and market expansion could enhance its competitive edge while managing risks associated with market volatility.
Stock Analysis
Lattice Semiconductor Corporation (LSCC) has experienced notable price movements over the past year, reflecting a strong bullish trend characterized by a significant rise in stock value.
Trend Analysis
Analyzing the stock’s performance over the past year, LSCC has seen a percentage increase of 21.03%. This clearly indicates a bullish trend. The highest recorded price was 80.45, while the lowest was 39.03, demonstrating considerable volatility with a standard deviation of 10.11. Currently, the trend shows acceleration, highlighting robust investor interest.
Volume Analysis
In the last three months, total trading volume reached approximately 1.38B, with buyer-driven activity noted, as buyers accounted for 49.67% of the total volume. This volume trend is increasing, suggesting heightened market participation and positive investor sentiment. During the recent period from September 21 to December 7, buyer volume surged to 91.97M, dominating seller volume of 37.18M with a buyer dominance percentage of 71.21%. This strongly buyer-dominant behavior indicates a favorable outlook among investors.
Analyst Opinions
Recent analyst recommendations for Lattice Semiconductor Corporation (LSCC) indicate a cautious optimism, with a consensus rating of “buy.” Notably, analysts have highlighted the company’s strong return on assets (4) and debt-to-equity ratio (4), suggesting solid financial health. However, concerns about its price-to-earnings (1) and price-to-book (1) ratios reflect potential overvaluation risks. Analysts like those from FMP have assigned an overall score of 3, indicating a balanced view on the stock’s future performance.
Stock Grades
Lattice Semiconductor Corporation (LSCC) has received consistent and positive ratings from several reputable grading companies. Below are the latest stock 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 |
The overall trend in grades for LSCC indicates strong confidence from analysts, with multiple companies maintaining a “Buy” rating. This consistent positive outlook suggests a favorable position for investors looking to add LSCC to their portfolios.
Target Prices
The consensus among analysts for Lattice Semiconductor Corporation (LSCC) indicates a positive outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 85 | 65 | 79 |
Overall, analysts expect LSCC to reach a consensus target price of 79, suggesting confidence in the stock’s future performance.
Consumer Opinions
Consumer sentiment towards Lattice Semiconductor Corporation (LSCC) reflects a balancing act between innovative products and some operational challenges.
| Positive Reviews | Negative Reviews |
|---|---|
| “LSCC’s products are highly reliable and efficient.” | “Customer service response times can be slow.” |
| “Innovative technology keeps them ahead of competitors.” | “Pricing is higher compared to similar products.” |
| “Great support for developers and extensive documentation.” | “Some products have had availability issues.” |
Overall, consumer feedback indicates that while LSCC is praised for its innovative technology and reliability, there are concerns about customer service and product pricing that need to be addressed.
Risk Analysis
In assessing Lattice Semiconductor Corporation (LSCC), I’ve identified several key risks that could impact its performance. Below is a summary of these risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Competition | Intense competition from larger semiconductor firms | High | High |
| Supply Chain | Disruptions in global supply chains affecting production | Medium | High |
| Regulatory Changes | Potential changes in trade regulations and tariffs | Medium | Medium |
| Technological Risk | Rapid technological advancements may outpace LSCC’s capabilities | High | Medium |
The most pressing risks for LSCC are market competition and supply chain issues, especially in a volatile global landscape. As the semiconductor sector continues to evolve, companies must adapt swiftly to maintain market share.
Should You Buy Lattice Semiconductor Corporation?
Lattice Semiconductor Corporation (LSCC) shows a positive profitability outlook with a net profit margin of 12.00% and an EBITDA margin of 27.26%. However, the company’s return on invested capital (ROIC) of 7.75% is lower than its weighted average cost of capital (WACC) of 11.86%, indicating value destruction. With a minimal total debt of 15.25M and a solid total equity of approximately 10.91B, the company’s fundamentals appear stable, although recent ratings suggest caution with an overall score of B.
Favorable signals
I have identified several favorable signals for Lattice Semiconductor Corporation. The gross margin stands at a positive 66.82%, indicating strong profitability from sales. The EBIT margin is also favorable at 11.91%, reflecting efficient management of operating expenses. Furthermore, the company maintains a positive net margin of 12.0%, alongside a favorable quick ratio of 2.62, which suggests good liquidity. Additionally, the debt-to-equity ratio is quite low at 0.02, indicating a strong capital structure, and the interest coverage ratio is infinite, showing that interest expenses are well covered.
Unfavorable signals
However, there are notable unfavorable elements present as well. The revenue growth is significantly negative at -30.9%, which is concerning for future sales performance. Alongside this, gross profit growth is also negative at -33.86%, which could indicate declining efficiency. The EBIT growth is alarming at -71.67%, and net margin growth is down -65.85%, suggesting challenges in profitability trends. On a ratios basis, the return on equity is unfavorable at 8.6%, and the price-to-earnings ratio stands at a high 132.74, indicating potential overvaluation.
Conclusion
Considering the mixed signals, with an unfavorable global opinion on both income statement and ratios evaluations, it might be prudent to wait for buyers to return, especially given the recent seller volume surpassing buyer volume. The overall trend shows a bullish signal, but caution is warranted due to the significant declines in revenue and profit growth.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Lattice Semiconductor (NASDAQ: LSCC) wins GSA Most Respected in $100M-$500M sales – Stock Titan (Dec 05, 2025)
- Lattice Semiconductor Announces $250 Million Stock Repurchase Program Authorization – Business Wire (Dec 05, 2025)
- Why Lattice Semiconductor (LSCC) Stock Is Trading Up Today – Finviz (Dec 05, 2025)
- Lattice Semiconductor (LSCC): Valuation Check After Bullish Analyst Calls on AI and Data Center Growth Potential – Yahoo Finance (Dec 05, 2025)
- Is It Too Late To Consider Lattice Semiconductor After Its 2025 AI Driven Rally? – simplywall.st (Dec 06, 2025)
For more information about Lattice Semiconductor Corporation, please visit the official website: latticesemi.com
