Lattice Semiconductor Looking To Reach That Next Level

Lattice Semiconductor (LSCC) has some meaningful operational challenges left to overcome, not the least of which are pushing out ASIC/microcontroller companies for design wins and leveraging an operating expense structure that is bloated relative to the revenue base. The company is not without opportunity, though, as Lattice's low-cost lower-power FPGAs are winning slots across communications, computing, industrial, and auto end-markets, with future opportunities in so-called "edge" applications like machine vision, artificial intelligence, and AR/VR.

I think investors are right to remain skeptical about Lattice's standalone potential, particularly given that double-digit revenue growth has often been a difficult bar for the company to reach and that it is difficult to drive attractive operating leverage with a relatively small revenue base. Even so, the standalone potential still suggests some undervaluation, and I continue to believe that Lattice could draw a bid of $7 (or more) from a company that wants its FPGA and mmWave technologies.

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Lattice Semiconductor Looking To Reach That Next Level