Lattice Semiconductor Looking To Go From Stabilization To Growth

It has been a rocky couple of years for Lattice Semiconductor (LSCC), including a failed attempt to sell the company to a Chinese entity, but the company has regrouped and management has stabilized the business. Now the question moves to whether or not the company’s focus on lower-cost, lower-power FPGAs for applications like robotics, security/surveillance, auto ADAS, and edge computing/networking can drive a re-acceleration to double-digit revenue growth and meaningful margin leverage.

I’m skeptical on Lattice’s prospects for attaining/maintaining double-digit revenue growth on any consistent or long-term basis, but I do believe the company’s low-power FPGA and millimeter wave technologies address real market needs and opportunities, and I believe the move to 28nm FD-SOI chip architecture can drive meaningful margin leverage. With the shares trading between my DCF and margin-based EV/revenue fair values, I believe there’s still upside here, but Lattice will need to start delivering some beat-and-raise quarters to drive truly exciting performance.

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Lattice Semiconductor Looking To Go From Stabilization To Growth