What Happened?
Shares of semiconductor designer Lattice Semiconductor (NASDAQ:LSCC) jumped 4.3% in the afternoon session after the stock rebounded following a broad market sell-off the previous day.
The pullback followed a 50% rally earlier in the year. While there were no company-specific updates, it's possible some investors found the new price more attractive. Earlier in the month, Lattice reported Q3 earnings that met Wall Street's expectations for sales and profits. Guidance also suggested continued strong execution as management highlighted accelerating demand in communications and computing, especially from data center and AI infrastructure customers. Lattice reported rising demand for its low-power FPGA solutions, particularly as companion chips in AI and data center servers.
After the initial pop the shares cooled down to $64.73, up 4.9% from previous close.
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What Is The Market Telling Us
Lattice Semiconductor’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock dropped 9.5% on the news that the company reported third-quarter results with the pullback following a significant run-up in the previous months.
Mostly, it was a very in-line quarter with revenue, EPS, and guidance for next quarter all meeting Wall Street's expectations. Management attributed the quarter’s performance to accelerating demand in communications and computing, especially from data center and AI infrastructure customers. CEO Ford Tamer highlighted expanding design wins in low-power field-programmable gate arrays (FPGAs) for data center, security, and board management applications, while noting that normalization of channel inventory in industrial and automotive markets remained a drag.
Looking forward, Lattice Semiconductor’s guidance reflected optimism driven by robust bookings in data center and communications, anticipated inventory normalization, and increasing adoption of its Nexus and Avant FPGA product lines. Management expects significant revenue acceleration in 2026, with Tamer stating, “Our comms and compute business revenue growth continues to accelerate, and it will accelerate further into 2026.” With the stock up nearly 50% in the last three months, this wasn't enough.
Lattice Semiconductor is up 15.7% since the beginning of the year, but at $64.73 per share, it is still trading 13.4% below its 52-week high of $74.71 from September 2025. Investors who bought $1,000 worth of Lattice Semiconductor’s shares 5 years ago would now be looking at an investment worth $1,627.
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