Lattice Semiconductor Not Immune To A Semiconductor Slowdown, But The Quality Is Still There

Having been bullish on Lattice Semiconductor (NASDAQ:LSCC) back when management launched a turnaround that has driven revenue acceleration and margin expansion beyond even what bulls believed possible, I've also spent a few articles lamenting how the shares ran away from me. While the stock has continued to outperform the SOX index (down 19% versus down 32% since my last update on Lattice), the pullback has at least made the valuation a little more reasonable.

When I say "reasonable", I do mean reasonable in the context of a growth stock. These shares aren't cheap on any reasonable multiples-based approach, unless you try to look at what the market has in the past been willing to pay for growth stories like Altera, Cavium, Inphi, Nvidia (NVDA), or Xilinx. I do believe Lattice can generate the sort of mid-to-high-teens growth that can support such hefty multiples, and I think these shares are worth a look from growth-oriented investors who can accept the risk that growth slows more sharply here and/or simply can't match the level of investor expectations baked into the price today.

 

Continue reading here: 

Lattice Semiconductor Not Immune To A Semiconductor Slowdown, But The Quality Is Still There