Lattice Semiconductor (LSCC), the little FPGA engine that could, continues to chug along, with the shares up another 40% in just the last three months since my last article and up over 60% this year - leaving the SOX far behind in its dust. There really hasn't been a secret formula here other than strong customer-focused product development (funny how listening to customers produces good results…) targeting secular growth markets like data centers (servers), 5G (base stations), and industrial automation.
Lattice is now in pretty rarefied air with respect to valuation, and management isn't giving the sort of guidance that would lead to significant upward revisions, but I do expect Lattice to generate exceptional (mid-teens) annualized revenue growth over the next five years, and exceptional growth stories can often support exceptional premiums (I'm thinking of names like Inphi (IPHI) and Silicon Labs (SLAB)). That's not a compelling enough argument for me to still strongly recommend this as a new position, but if I owned the shares I would be in no great hurry to head for the exit.
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