Lattice Semiconductor: The Rally Is Getting Ahead Of The Fundamentals
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Denis Doroshenko15 FollowersFollow5ShareSavePlay(12min)CommentsSummaryLattice Semiconductor (LSCC) is pivoting toward Edge AI and Communication & Computing, driving initial signs of recovery but facing margin compression.LSCC’s Q3 2025 results show modest revenue growth (+4.9% YoY), but operating and net profit margins remain well below historical levels.Despite a $250 million buyback and insider buying, LSCC trades at a premium (2025 P/E 74.7x), with current valuation reflecting all positive catalysts.I rate LSCC a Hold, as robust earnings and margin recovery are needed to justify the current valuation; further upside depends on Q4 2025 results. Peter Hansen/iStock via Getty Images Investment Thesis Lattice Semiconductor Corporation (LSCC) is successfully transitioning into Edge AI and Communication & Computing markets that should accelerate future growth. Mid-range FPGAs (Field Programmable Gate Array) products such as Lattice Avant-G and Avant-X are gaining ground, capturing market share, and increasing the average sellingThis article was written byDenis Doroshenko15 FollowersFollowCovering Mid/Small-Caps in Digital Infra, SaaS and Defense. Mixing value & momentum stratiegies. Ex-M&A (Lazard, Rothschild). Opinions mine. Cheers from Paris.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You