Lattice Semiconductor (LSCC): Valuation Check After Bullish Analyst Calls on AI and Data Center Growth Potential
Lattice Semiconductor (LSCC) is back on traders’ radar after a cluster of upbeat analyst calls, as confidence builds around its low power FPGA chips quietly becoming essential companions inside AI and data center servers.
See our latest analysis for Lattice Semiconductor.
Those bullish calls are landing on a stock that already has the wind at its back, with a roughly 20 percent 30 day share price return and a near 36 percent year to date share price return helping power an almost 80 percent five year total shareholder return. This suggests momentum is rebuilding after a choppy few years that included workforce cuts and mixed insider activity.
If this AI fueled run has you curious about what else might be setting up for the next leg higher, it is worth exploring other high growth tech and AI names through high growth tech and AI stocks.
But after a sharp rebound and analysts nudging targets only slightly above today’s price, is Lattice still flying under the radar as an AI enabler, or is the market already discounting years of future growth?
With the narrative fair value sitting modestly above Lattice Semiconductor’s last close of $75.83, the implied upside rests on aggressive profit and growth assumptions.
The ongoing AI and edge computing boom is driving hyperscale data center spend and increasing Lattice’s attach rate as a companion chip for AI accelerators, servers, and networking equipment. This is leading to higher ASPs and robust design wins, which is expected to accelerate revenue growth and support gross margin expansion.
Want to see what powers that optimism? This narrative leans on rapid revenue expansion, a step change in margins, and a premium future earnings multiple. Curious which bold forecasts make that fair value possible? Dive in to unpack the full earnings roadmap behind this target.
Result: Fair Value of $80.31 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, rising competition in low to mid range FPGAs and heavier regulatory scrutiny, particularly around China, could quickly undermine those upbeat growth assumptions.
Find out about the key risks to this Lattice Semiconductor narrative.
While the narrative points to modest upside, the numbers tell a tougher story. Lattice trades on a price to sales ratio of 21 times, far above peers at 11.4 times and the US semiconductor industry at 5.4 times, and more than double its 9 times fair ratio, which suggests meaningful valuation risk if expectations cool.
See what the numbers say about this price — find out in our valuation breakdown.
If you see things differently or prefer to dig into the numbers yourself, you can build a custom Lattice view in just minutes: Do it your way.
A great starting point for your Lattice Semiconductor research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include LSCC.
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