Trading Analysis Report: LSCC
- Analysis date: 2026-06-01
- Processed decision: Hold
- Price Target: 150
I. Analyst Team Reports
Market Analyst
Market Report
Lattice Semiconductor (LSCC) closed at $147.08 on May 29, 2026. yfinance showed a 52-week range of $44.15-$152.07, a 50-day average of $115.78, and a 200-day average of $86.27.
The stock is very strong but extended. The local yfinance history showed a 227.3% one-year return and 87.0% YTD return.
StockAnalysis ranked LSCC #24 on its semiconductor industry list by market capitalization. Lattice is relevant to the semiconductor queue because it is a low-power FPGA supplier serving edge-to-cloud computing, communications, industrial, automotive, and AI-related server applications.
Market read: business momentum is excellent, but the stock is near its high and valuation is demanding. Use Hold with a $150 target.
Sentiment Analyst
Sentiment Report
Sentiment toward LSCC is very positive after Q1 2026 results.
Revenue was $170.9 million, up 42.2% year over year and 17.2% sequentially. GAAP gross margin was 68.8%, and non-GAAP gross margin was 70.0%.
Non-GAAP net income was $57.0 million, or $0.41 diluted EPS. Adjusted EBITDA was $67.8 million, representing a 39.6% adjusted EBITDA margin.
Management said new product revenue was led by AI-related server demand and that Compute and Communications achieved record revenue.
Sentiment read: Hold because the setup is strong but valuation already reflects a lot of the AI-server and FPGA upside.
News Analyst
News Report
The key current source is Lattice Semiconductor's Q1 2026 financial results release.
Revenue was $170.9 million, up 42.2% year over year. GAAP net income was $21.8 million, or $0.16 diluted EPS.
Non-GAAP gross margin was 70.0%, and non-GAAP net income was $57.0 million, or $0.41 diluted EPS.
GAAP net cash flow from operating activities was $50.3 million, and non-GAAP free cash flow was $39.7 million, representing a 23.2% free cash flow margin.
Q2 2026 guidance calls for revenue of $175-$195 million, non-GAAP gross margin of 70% plus or minus 1%, and non-GAAP net income of $0.42-$0.46 per share.
Lattice also signed a definitive agreement to acquire AMI for $1.65 billion.
News read: LSCC has accelerating growth, high margins, AI-related server demand, and a strategic platform acquisition.
Fundamentals Analyst
Fundamentals Report
LSCC fundamentals are improving quickly, but the valuation is high.
yfinance showed market cap of approximately $20.15 billion, enterprise value of approximately $20.05 billion, total revenue of approximately $574.0 million, free cash flow of approximately $118.3 million, operating cash flow of approximately $193.5 million, total cash of approximately $140.0 million, and total debt of approximately $39.9 million.
The same snapshot showed trailing P/E of 980.53x, forward P/E of 63.64x, and price/sales of 35.11x. These multiples require sustained high growth and margin expansion.
The AMI acquisition is expected to be accretive to gross margin, free cash flow, and EPS on a non-GAAP basis, and management says it supports a path toward a $1 billion+ annual revenue run rate by Q4 2026.
Fundamental read: Hold because Lattice is executing well, but the stock already prices in a strong multi-year cycle.
II. Research Team Decision
Bull Researcher
Bull Research
The bull case is that Lattice becomes a scarce high-margin FPGA beneficiary of AI server, edge AI, and secure management demand.
Management said new product revenue was led by AI-related server demand. Lattice also joined the NVIDIA Halos AI Systems Inspection Lab ecosystem and announced a TI collaboration for real-time edge AI systems using the Lattice + NVIDIA Holoscan Sensor Bridge solution.
Q1 revenue grew 42.2%, non-GAAP EPS grew 86% year over year, and adjusted EBITDA margin was 39.6%.
Q2 guidance implies revenue of $175-$195 million, and the AMI acquisition supports the path toward a $1 billion+ annual revenue run rate by Q4 2026.
Bull conclusion: LSCC can justify premium valuation if AI-related server demand and the AMI integration keep growth above market.
Bear Researcher
Bear Research
The bear case is valuation and execution risk.
yfinance showed price/sales of 35.11x, forward P/E of 63.64x, and a 227.3% one-year stock return. The stock is also close to its $152.07 52-week high.
The AMI deal adds integration, regulatory, financing, and dilution risk because consideration includes $1.0 billion in cash and about $650 million in Lattice common stock.
Semiconductor cycle risk, distributor order timing, customer inventory, export controls, tariff uncertainty, and competition in FPGA and embedded control markets can all pressure results.
Bear conclusion: Hold is appropriate because great execution is already heavily reflected in the share price.
Research Manager
Research Manager Synthesis
The bull case is 42% revenue growth, 70% non-GAAP gross margin, strong adjusted EBITDA, AI-related server demand, NVIDIA and TI ecosystem moves, Q2 growth guidance, and the AMI platform expansion.
The bear case is stretched valuation, a huge stock move, near-52-week-high price, semiconductor cyclicality, distributor concentration, and AMI integration and dilution risk.
The correct conclusion is Hold. The $150 target is close to the latest price and reflects strong fundamentals with limited margin of safety.
Synthesis: assign Hold with a $150 target.
III. Trading Team Plan
Trader
Trader View
LSCC is a strong momentum semiconductor stock with high valuation risk.
The stock is above the $115.78 50-day average and $86.27 200-day average, confirming strong trend support. It is also near the $152.07 52-week high, so upside may need another catalyst.
Upside trigger: Q2 revenue above $195 million, non-GAAP EPS above $0.46, continued AI-server strength, and AMI deal progress.
Downside trigger: Q2 revenue below $175 million, margin pressure, AMI integration concerns, distributor order normalization, export-control risk, or a high-multiple semiconductor selloff.
Trading plan: Hold with a $150 6-12 month base-case target.
IV. Risk Management Team Decision
Aggressive Analyst
Aggressive Risk View
Aggressive investors may continue holding LSCC for AI-related server demand, FPGA scarcity, and AMI platform expansion.
The risk is that the stock already reflects a near-perfect growth cycle.
Aggressive conclusion: Hold.
Conservative Analyst
Conservative Risk View
Conservative investors should not chase LSCC near its 52-week high.
The company is executing well, but valuation and acquisition risk make the margin of safety thin.
Conservative conclusion: Hold.
Neutral Analyst
Neutral Risk View
The neutral view is positive on the company and cautious on the stock.
LSCC has excellent growth and AI-related demand signals, but the current valuation limits fresh upside.
Neutral conclusion: Hold.
V. Portfolio Manager Decision
Portfolio Manager
Portfolio Manager Decision
Rating: Hold Price Target: 150
Horizon: 6-12 months Current Price Reference: $147.08 close on 2026-05-29
Lattice Semiconductor is rated Hold. LSCC is a semiconductor company in the web-researched semiconductor universe, with low-power programmable FPGA products serving edge-to-cloud communications, computing, industrial, automotive, and AI-related server applications.
Lattice reported Q1 2026 revenue of $170.9 million, up 42.2% year over year and 17.2% sequentially.
GAAP gross margin was 68.8%, GAAP net income was $21.8 million, and GAAP diluted EPS was $0.16.
Non-GAAP gross margin was 70.0%, and non-GAAP net income was $57.0 million, or $0.41 diluted EPS.
Adjusted EBITDA was $67.8 million, representing a 39.6% adjusted EBITDA margin.
GAAP net cash flow from operating activities was $50.3 million, and non-GAAP free cash flow was $39.7 million, representing a 23.2% free cash flow margin.
Management said Compute and Communications achieved record revenue, Industrial and Embedded growth exceeded 20% sequentially, and new product revenue was led by AI-related server demand.
AI and edge compute signals are visible. Lattice joined the NVIDIA Halos AI Systems Inspection Lab ecosystem and announced a Texas Instruments collaboration for real-time edge AI systems using the Lattice + NVIDIA Holoscan Sensor Bridge solution.
Q2 2026 guidance calls for revenue of $175-$195 million, non-GAAP gross margin of 70% plus or minus 1%, non-GAAP operating expenses of $64-$67 million, and non-GAAP net income of $0.42-$0.46 per share.
Lattice also signed a definitive agreement to acquire AMI for $1.65 billion, consisting of $1.0 billion in cash and about $650 million in Lattice common stock. The deal is expected to close in Q3 2026, be accretive to gross margin, free cash flow, and EPS on a non-GAAP basis, and support a path toward a $1 billion+ annual revenue run rate by Q4 2026.
yfinance showed a latest close of $147.08, market cap of approximately $20.15 billion, enterprise value of approximately $20.05 billion, 52-week range of $44.15-$152.07, trailing P/E of 980.53x, forward P/E of 63.64x, price/sales of 35.11x, total revenue of approximately $574.0 million, free cash flow of approximately $118.3 million, operating cash flow of approximately $193.5 million, total cash of approximately $140.0 million, and total debt of approximately $39.9 million.
The main risks are stretched valuation, semiconductor cyclicality, distributor order timing, customer inventory normalization, export controls, tariff uncertainty, FPGA competition, AMI integration and financing risk, and potential dilution from the stock portion of the AMI consideration.
The $150 target is close to the latest price and reflects strong execution with limited margin of safety. Hold is appropriate.