Lattice Semiconductor Posts A Good Quarter, But The Bigger Story Is Still Building

When I last wrote about Lattice (LSCC) I said “clearly the word is out” on this company’s turnaround/restructuring plan, but the shares are up another 25% since then as investors continue to wake up to the significant opportunities for Lattice’s low-power FPGAs in emerging applications like 5G and edge AI inference. With FPGA competitors like Xilinx (XLNX) and Intel (INTC) focusing on much different products and markets, and product performance challenges with would-be competitors from the MCU space, I like the set-up for Lattice over the next three to five years.

What I don’t like is the price. Even factoring in a significant revenue and margin ramp, it is difficult to call today’s price a bargain. While there is room for Lattice to exceed even bullish expectations, and investors love semiconductor growth stories (as seen with IoT-driven Silicon Labs (SLAB) ), I’m not inclined to chase the shares at this point.

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Lattice Semiconductor Posts A Good Quarter, But The Bigger Story Is Still Building