Lattice Semiconductor (NASDAQ:LSCC) Shares Gap Up on Earnings Beat

Key Points

• Lattice Semiconductor shares jumped 12.3%, opening at $107 after the company reported third-quarter EPS of $0.72 versus the $0.55 consensus and revenue of $291.0 million versus expectations of $255.9 million. Revenue surged 118.3% year over year.
• Management issued well-above-consensus fourth-quarter guidance, projecting EPS of $0.82–$0.86 and revenue of $325 million–$345 million, supported by demand for FPGAs in AI-related infrastructure.
• Analyst sentiment remains positive, with a consensus “Buy” rating and a $153.62 price target, but the stock’s valuation is demanding at roughly 412 times earnings, creating risk if AI-driven growth slows.

Lattice Semiconductor Corporation (NASDAQ:LSCC - Get Free Report)'s share price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $95.44, but opened at $107.00. Lattice Semiconductor shares last traded at $107.1980, with a volume of 2,057,143 shares trading hands.

The semiconductor company reported $0.72 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.55 by $0.17. The firm had revenue of $291.04 million during the quarter, compared to analysts' expectations of $255.90 million. Lattice Semiconductor had a net margin of 5.58% and a return on equity of 10.92%. The company's revenue was up 118.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.28 earnings per share.

Trending Headlines about Lattice Semiconductor

Here are the key news stories impacting Lattice Semiconductor this week:

• Positive Sentiment: Q3 results exceeded expectations: Lattice reported adjusted EPS of $0.72 versus the $0.55-$0.56 analyst consensus, while revenue reached $291.0 million compared with estimates near $255.9 million. Revenue increased 118.3% year over year, and Compute and Communications revenue grew 132%. Lattice Semiconductor Q3 earnings report
• Positive Sentiment: Q4 guidance was well above forecasts: Management projected EPS of $0.82-$0.86 and revenue of $325 million-$345 million, versus consensus estimates of $0.60 and $293.6 million, respectively. The outlook suggests continued momentum into the next quarter. Lattice Semiconductor reports record third-quarter revenue
• Positive Sentiment: AI demand is supporting growth expectations: Lattice cited increased demand for FPGAs used in AI-related infrastructure. The company reportedly expects at least 60% revenue growth in 2027, adding to investor confidence that the acceleration may extend beyond the current quarter. Lattice projects 2027 revenue growth
• Positive Sentiment: Analyst sentiment improved: Rosenblatt Securities raised its price target from $175 to $200 and assigned a Buy rating following the earnings release. Other analysts also increased their forecasts after the results. Analysts raise Lattice Semiconductor forecasts
• Neutral Sentiment: The quarter includes contributions from Lattice’s July 2026 acquisition of AMI, making year-over-year comparisons less clean and leaving investors focused on whether organic growth can remain strong.
• Negative Sentiment: Despite the improving business outlook, valuation remains demanding, with the stock trading at a very high earnings multiple. Some commentary suggests investors may question whether the rapid AI-driven growth is sustainable, which could limit further gains or increase volatility. Lattice Semiconductor valuation commentary

Analyst Ratings Changes

LSCC has been the subject of a number of recent research reports. Weiss Ratings reiterated a "hold (c-)" rating on shares of Lattice Semiconductor in a report on Thursday, October 15th. Stifel Nicolaus increased their target price on shares of Lattice Semiconductor from $165.00 to $175.00 and gave the stock a "buy" rating in a research report on Tuesday. Benchmark assumed coverage on Lattice Semiconductor in a report on Tuesday, August 25th. They set a "buy" rating and a $160.00 target price on the stock. TD Cowen reduced their price target on Lattice Semiconductor from $165.00 to $130.00 and set a "buy" rating for the company in a research report on Monday, October 19th. Finally, Wall Street Zen downgraded Lattice Semiconductor from a "strong-buy" rating to a "buy" rating in a research note on Sunday, October 18th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, Lattice Semiconductor presently has a consensus rating of "Buy" and a consensus price target of $153.62.

Insider Transactions at Lattice Semiconductor

In related news, SVP Tracy Feanny sold 1,880 shares of the firm's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $126.43, for a total value of $237,688.40. Following the transaction, the senior vice president directly owned 60,221 shares in the company, valued at approximately $7,613,741.03. This trade represents a 3.03% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Esam Elashmawi sold 15,742 shares of Lattice Semiconductor stock in a transaction on Monday, August 17th. The stock was sold at an average price of $134.77, for a total transaction of $2,121,549.34. Following the completion of the transaction, the senior vice president owned 155,420 shares in the company, valued at $20,945,953.40. This trade represents a 9.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 19,661 shares of company stock worth $2,587,259. 0.62% of the stock is owned by insiders.

Institutional Investors Weigh In On Lattice Semiconductor

A number of hedge funds have recently bought and sold shares of the company. HB Wealth Management LLC boosted its holdings in Lattice Semiconductor by 3.7% in the first quarter. HB Wealth Management LLC now owns 3,335 shares of the semiconductor company's stock valued at $309,000 after acquiring an additional 119 shares during the last quarter. Signature Equity Partners LLC increased its position in Lattice Semiconductor by 160.5% in the third quarter. Signature Equity Partners LLC now owns 211 shares of the semiconductor company's stock worth $27,000 after purchasing an additional 130 shares during the period. Evergreen Capital Management LLC raised its holdings in Lattice Semiconductor by 3.4% during the 3rd quarter. Evergreen Capital Management LLC now owns 4,225 shares of the semiconductor company's stock worth $531,000 after purchasing an additional 137 shares during the last quarter. V Square Quantitative Management LLC raised its holdings in Lattice Semiconductor by 38.6% during the 1st quarter. V Square Quantitative Management LLC now owns 513 shares of the semiconductor company's stock worth $48,000 after purchasing an additional 143 shares during the last quarter. Finally, Parallel Advisors LLC lifted its position in Lattice Semiconductor by 10.1% during the 1st quarter. Parallel Advisors LLC now owns 1,963 shares of the semiconductor company's stock valued at $182,000 after purchasing an additional 180 shares during the period. 98.08% of the stock is currently owned by institutional investors.

Lattice Semiconductor Trading Up 12.3%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.33 and a current ratio of 3.02. The company has a market capitalization of $14.69 billion, a price-to-earnings ratio of 411.58, a P/E/G ratio of 1.58 and a beta of 1.83. The business's 50-day simple moving average is $114.86 and its 200-day simple moving average is $115.42.

About Lattice Semiconductor

Lattice Semiconductor Corporation NASDAQ: LSCC designs and develops low-power programmable semiconductor devices and related software. Its product portfolio includes field-programmable gate arrays (FPGAs), complex programmable logic devices, programmable system control solutions, and connectivity products that enable customers to configure and update electronic systems after manufacturing.

The company's products are used in communications and networking equipment, industrial systems, automotive applications, data-center and computing hardware, consumer electronics, and aerospace and defense products.

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