Sunday, November 24, 2019

Lattice Semiconductor Delivering Early On Several Key Promises

Up another 55% or so from my last update and 250% from my first Seeking Alpha article on the company, Lattice Semiconductor (LSCC) is a great go-to example of my investment philosophy that successful turnarounds can produce returns significantly ahead of what might seem fair or reasonable at the start of the process. Over the last two years, Lattice has not only turned over management and embraced a significantly different operating philosophy, it has delivered meaningful improvements in margins - one of the key drivers for semiconductor valuation.

I don't really think of Lattice as a turnaround anymore, as I believe the company is firmly in the midst of a transition to a growth story. In addition to opportunities in the data center and 5G base stations and auto driver assistance, I'm eager to see what the company will accomplish with its new FD-SOI platform and its AI-focused SensAI software stack.

As a growth story, I'm not quite as worried about valuation, but it is nevertheless hard to call Lattice "cheap". The shares already anticipate significant margin improvement and future revenue growth, and it's tough to make the numbers work.

Read more here:
Lattice Semiconductor Delivering Early On Several Key Promises

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