Update shared on25 Oct 2025
Fair value Increased 2.25%Lattice Semiconductor's analyst price target has increased significantly from $65 to $85. Analysts cite sustained AI-driven demand and expectations for earnings growth as factors supporting the higher valuation.
Analyst Commentary
Recent analyst updates have highlighted several factors driving optimism around Lattice Semiconductor, as well as a few areas for caution. These perspectives shed light on the company’s valuation, execution, and growth expectations in the near and medium term.
Bullish Takeaways- Bullish analysts see sustained artificial intelligence demand as a key driver for Lattice's earnings growth. This supports the higher price target.
- Positive implications are expected from robust AI capital expenditure, particularly with increasing shipments of AI server racks from major players in the industry.
- Analysts anticipate additional growth momentum from new product cycles. These include anticipated launches of server solutions that further expand Lattice’s exposure to AI markets.
- Projections for the upcoming quarters suggest that overall results should be in line with expectations or show modest upside. This indicates strong execution despite broader sector uncertainties.
- There are concerns that cuts to Chinese electric vehicle production could weigh on revenue from automotive segments in the coming quarters.
- Easing of tariff-driven demand pull-ins may lead to a more muted Q4 outlook for companies exposed to these macro headwinds.
- While Q3 is likely to be solid, cautious analysts warn that some of the positive drivers may normalize and potentially impact valuation momentum.
What's in the News
- Lattice Semiconductor launched the MachXO5-NX TDQ family, the industry's first secure control FPGAs with full Commercial National Security Algorithm 2.0-compliant post-quantum cryptography support. The product targets applications in Computing, Communications, Industrial, and Automotive sectors (Key Developments).
- The company was removed from the PHLX Semiconductor Sector Index (Key Developments).
- Lattice completed a share buyback tranche, repurchasing 933,895 shares for $45.85 million and totaling 1,327,727 shares for $70.85 million under its December 2024 buyback program (Key Developments).
- Guidance for Q3 2025 was provided, with expected revenue between $128 million and $138 million (Key Developments).
Valuation Changes
- Fair Value has risen slightly from $68.31 to $69.85. This reflects a modest upward adjustment in valuation estimates.
- Discount Rate has fallen marginally from 10.10% to 10.06%. This indicates a slightly reduced risk premium assigned by analysts.
- Revenue Growth projections have increased a bit, moving from 16.21% to 16.30%. This signals incremental optimism regarding future sales expansion.
- Net Profit Margin has edged up from 24.38% to 25.04%. This points to expectations of improved profitability.
- Future P/E has declined slightly from 64.86x to 64.35x. This suggests a marginally lower anticipated earnings multiple.
Disclaimer
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