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Update shared on11 Oct 2025

Fair value Increased 5.09%
AnalystConsensusTarget's Fair Value
US$68.31
4.4% overvalued intrinsic discount
11 Oct
US$71.33
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Analysts have increased their price target for Lattice Semiconductor from $65 to $68.31, citing anticipated growth due to expanding AI infrastructure and stronger demand in server markets.

Analyst Commentary

Analyst sentiment toward Lattice Semiconductor has evolved following recent developments in the AI and server infrastructure sectors. The updated outlook incorporates expected demand swings, industry growth, and key execution factors that may affect the company’s performance and share valuation.

Bullish Takeaways

  • Bullish analysts highlight the positive implications for Lattice due to sustained capital expenditures in AI infrastructure, which are expected to drive continued revenue growth.
  • Significantly increasing AI server rack shipments, with projections of 30,000 units for 2025 and 50,000 for 2026, are seen as strong contributors to Lattice’s core business expansion.
  • Exposure to next-generation server stacks, particularly those involving leading platforms, is anticipated to provide incremental tailwinds for earnings growth and margin improvement.
  • Upgraded price targets reflect confidence in Lattice’s ability to capitalize on accelerated AI adoption and deliver outsized earnings performance relative to peers.

Bearish Takeaways

  • Bearish analysts remain cautious regarding the sustainability of heightened capex cycles and their potential normalization, which could dampen future growth rates.
  • Concerns persist about competitive pressures in the AI server market, which could challenge Lattice’s market share and limit operating leverage if not met with continued innovation.
  • Execution risk is noted, particularly in scaling to meet increased demand and integrating with new AI server ecosystems, which could impact short-term performance if not managed effectively.

What's in the News

  • Lattice Semiconductor has been removed from the PHLX Semiconductor Sector Index, which may impact its exposure to index-based investments. (Key Developments)
  • The company completed a share buyback of 1,327,727 shares, representing 0.97% of the company, for $70.85 million as of June 28, 2025. (Key Developments)
  • Lattice Semiconductor issued revenue guidance for Q3 2025, projecting between $128 million and $138 million in revenue. (Key Developments)
  • Lattice CertusPro-NX FPGAs are now featured in Mitsubishi Electric's CNC solutions for enhanced industrial automation, as announced during the Lattice APAC Tech Summit in July 2025. (Key Developments)
  • The company expanded its portfolio with new high I/O density options in the Lattice Certus-NX and MachXO5-NX FPGA device families, targeting power-constrained AI, industrial, server, and automotive markets. (Key Developments)

Valuation Changes

  • Fair Value: Increased from $65 to $68.31, reflecting a modest upward revision in company valuation.
  • Discount Rate: Increased slightly from 9.97% to 10.10%, indicating a minor increase in perceived risk or cost of capital.
  • Revenue Growth: Remained essentially unchanged and held steady at around 16.2%.
  • Net Profit Margin: Stayed largely stable, moving fractionally from 24.38% to 24.38%.
  • Future P/E: Increased from 61.5x to 64.9x, suggesting slightly higher expectations for future earnings relative to price.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.