LSCC Stock Risk & Deep Value Analysis
Lattice Semiconductor Corp
DVR Score
out of 10
What You Need to Know About LSCC Stock
We analyzed Lattice Semiconductor Corp using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran LSCC through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
LSCC Risk Analysis & Red Flags
What Could Go Wrong
The significant drop in FY26 EPS guidance (from $1.05 to $0.65) suggests a material slowdown in profitability that could cause further de-rating of its extremely high P/E multiple. If growth doesn't re-accelerate aggressively beyond 2026, the stock could struggle to maintain its valuation, leading to a substantial price correction.
Risk Matrix
Overall
Moderate
Financial
High
Market
Medium
Competitive
Medium
Execution
Medium
Regulatory
Low
Red Flags
- ⚠
FY 2026 EPS guidance of ~$0.65 represents a ~38% decline from FY 2025 EPS of $1.05.
- ⚠
CEO Ford Tamer and Director James P. Lederer sold a combined 8,544 shares (~$0.8M) in March/February 2026.
- ⚠
Trailing P/E of 4,586.79 (or 90x on FY25 EPS) and 146x on FY26 estimates are exceptionally high.
- ⚠
Net margin (0.59%) and ROE (5.60%) from Q4 2025 are very low for its valuation.
Upcoming Risk Events
- 📅
Q1 2026 earnings miss or weak forward guidance
- 📅
Increased competitive pressure from larger semiconductor players entering the low-power FPGA niche
When to Reconsider
- 🚪
Exit if Q1 2026 EPS misses company guidance of $0.34-$0.38 and/or FY26 guidance is lowered further.
- 🚪
Sell if competitive announcements directly threaten its low-power FPGA niche.
- 🚪
Consider exit if stock breaks below $80 support level on increasing volume.
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Investment Thesis
Lattice Semiconductor is a niche leader in low-power FPGAs, strategically positioned for the secular growth trends in edge AI, industrial IoT, and automotive. Its innovative product portfolio (e.g., Avant, MachXO5-NX) and sticky software ecosystem provide a competitive advantage, enabling market share gains despite its challenging valuation. The company has a clear vision and execution for high-growth segments, which could lead to significant revenue expansion over the long term, though 10x within 3-5 years appears highly ambitious given current financials and market cap.
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LSCC Price Targets & Strategy
12-Month Target
$105.00
Bull Case
$125.00
Bear Case
$75.00
Valuation Basis
Based on ~161x forward P/E applied to $0.65 est. FY26 EPS, aligning with higher end of analyst median.
Entry Strategy
Consider dollar-cost averaging on pullbacks towards the $85-$90 range (potential support zone).
Exit Strategy
Take 30% profit at $115, another 30% at $125; Implement a stop-loss at $80.
Portfolio Allocation
3-5% for moderate-aggressive risk tolerance.
Price Targets & Strategy
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Is LSCC Financially Healthy?
Valuation
P/E Ratio
4751.00
Forward P/E
59.20
PEG Ratio
5.54
Price/Book
18.20
Price/Sales
24.89
Profitability
Net Margin
0.60%
Return on Equity
16.56%
Revenue Growth
2.72%
EPS
$0.02
Balance Sheet
Current Ratio
3.24
Quick Ratio
2.02
Debt/Equity
0.24
Total Debt
$36.13M
Cash Flow
Operating Cash Flow
$175.11M
Does LSCC Have a Competitive Moat?
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🛡️ Narrow
Moat Trend
Expanding
Moat Sources
2 Identified
Lattice's moat is built on its specialized, low-power FPGA technology and sticky software suite. The investment in the Avant series and focus on high-growth, technically demanding segments (like edge AI) where power efficiency is critical creates significant switching costs and proprietary IP that will be difficult for general-purpose chipmakers to replicate quickly. This moat should persist for 10-15 years, as long as innovation remains ahead of competitors.
Moat Erosion Risks
- •Larger competitors (e.g., AMD, Intel) decide to aggressively target the low-power FPGA segment with their vast resources.
- •New alternative computing architectures (e.g., ASICs, specialized AI accelerators) significantly reduce demand for FPGAs in its core markets.
LSCC Competitive Moat Analysis
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LSCC Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral to mildly Bullish, driven by product innovation news and long-term AI narrative.
Institutional Sentiment
Positive, with 'Moderate Buy' consensus from analysts and institutional ownership at 98.08%. Recent analyst price target raises by Needham and others underscore positive outlook.
Insider Activity (Form 4)
CEO Ford Tamer sold 3,544 shares on March 9, 2026 ($321,193). Director James P. Lederer sold 5,000 shares on February 26, 2026 ($484,800). Total insider sales of 55,305 shares ($5.04M) in the last 90 days indicates some selling pressure from management.
Options Flow
Normal options activity.
Earnings Intelligence
Next Earnings
2026-05-05
Surprise Probability
Medium
Historical Earnings Pattern
Q4 2025 beat revenue and met EPS, leading to modest positive analyst revisions. Market reaction to earnings is often tied to guidance and perceived momentum in high-growth segments.
Key Metrics to Watch
Competitive Position
Top Competitor
ONSEMI (onsemi)
Market Share Trend
Gaining market share in its specialized low-power FPGA niche, particularly for edge AI and automotive applications, evidenced by product awards and strong Q4 YoY revenue growth.
Valuation vs Peers
LSCC trades at a substantial premium to broader semiconductor peers on P/E basis (146x forward P/E vs. sector averages which are typically much lower, e.g., onsemi's forward P/E might be in the 20-30x range), reflecting its niche market leadership and perceived higher growth potential in specialized FPGAs. However, this premium is challenged by the recent decline in FY26 EPS guidance.
Competitive Advantages
- •Proprietary low-power FPGA architecture optimized for edge AI
- •Sticky software ecosystem (Lattice Radiant/Diamond/Propel)
- •Focus on specific high-growth, high-margin end markets (edge AI, IoT, automotive)
- •Agile design and rapid innovation cycles compared to larger, broader semiconductor firms
Market Intelligence
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What Could Drive LSCC Stock Higher?
Near-Term (0-6 months)
- •Q1 2026 Earnings Report (May 5, 2026)
- •Continued adoption of MachXO5-NX TDQ FPGA (following 'Best in Show' award)
Medium-Term (6-18 months)
- •Expansion of Avant series into new automotive and industrial IoT applications
- •Strategic partnerships leveraging edge AI FPGA expertise
Long-Term (18+ months)
- •Dominant market share in low-power edge AI FPGAs for high-growth sectors
- •Further consolidation of the specialized FPGA market
Catalysts & Growth Drivers
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What's the Bull Case for LSCC?
- ✓
Acceleration in quarterly revenue growth rates (above 20% YoY consistently)
- ✓
Improvement in gross and operating margins, reversing the FY26 EPS decline
- ✓
Continued positive product reception and design wins in target markets
Bull Case Analysis
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How Lattice Semiconductor Corp Makes Money
Lattice Semiconductor designs and sells specialized, low-power Field-Programmable Gate Arrays (FPGAs) and related software development tools. FPGAs are reconfigurable integrated circuits that allow customers to customize hardware functionality after manufacturing, making them ideal for edge AI, industrial automation, and automotive applications where flexibility, low power consumption, and real-time processing are crucial. The company generates revenue by selling these chips and providing proprietary software that enables customers to program and optimize them, serving a global customer base of original equipment manufacturers (OEMs).
Read Full Business Model BreakdownFAQ
What is the DVR Score for Lattice Semiconductor Corp (LSCC)?
As of April 5, 2026, Lattice Semiconductor Corp has a DVR Score of 6.5 out of 10, placing it in the "Solid Pick" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the risk level for LSCC stock?
Our analysis rates Lattice Semiconductor Corp's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of LSCC?
Lattice Semiconductor Corp currently has a price-to-earnings (P/E) ratio of 4751.0. This is above the market average, suggesting the stock may be priced for high growth expectations.
Is Lattice Semiconductor Corp's revenue growing?
Lattice Semiconductor Corp has reported revenue growth of 2.7%. The company is growing at a moderate pace.
Is LSCC stock profitable?
Lattice Semiconductor Corp has a profit margin of 0.6%. The company is profitable but margins are modest.
How often is the LSCC DVR analysis updated?
Our AI-powered analysis of Lattice Semiconductor Corp is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 5, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for LSCC (Lattice Semiconductor Corp) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.