Lattice Semiconductor’s analyst price target has been raised substantially, from approximately $69.85 to $78.77. Analysts cite accelerating revenue growth driven by AI adoption as well as strengthening industrial and automotive demand.

Analyst Commentary

Recent adjustments to price targets from several major research firms reflect a growing confidence in Lattice Semiconductor’s growth prospects and market execution. Analysts point to a mix of structural and cyclical factors that are driving changes in sentiment around the company’s stock.

Bullish Takeaways

• Analysts highlight anticipated revenue acceleration, particularly as demand from AI applications and infrastructure continues to expand.
• Strong momentum in industrial and automotive end markets is seen as a key driver supporting robust valuation upgrades.
• The company’s disciplined approach to product shipment and focus on high-growth verticals is expected to create opportunities to outperform industry peers.
• Sustained investments in AI infrastructure and increasing shipments of major AI server racks are projected to provide incremental tailwinds and support significant earnings growth for Lattice.

Bearish Takeaways

• Some caution remains around Chinese electric vehicle production trends and potential softness in auto sector demand, which could pressure earnings outlooks in the near term.
• Analysts note that tariff policy changes and global trade dynamics may introduce additional volatility, particularly for auto-exposed segments.
• Expectations for the next quarter are tempered to "modest upside," suggesting that while growth is promising, there are headwinds that could limit upside in the short term.

What's in the News

• Lattice Semiconductor provided earnings guidance for Q4 2025, projecting revenue between $138 million and $148 million (Key Developments).
• The company completed a buyback tranche, repurchasing 217,820 shares for $15 million. In total, the ongoing program has repurchased 1,545,547 shares for $85.85 million (Key Developments).
• Lattice introduced the MachXO5-NX TDQ FPGA family, the first to offer full CNSA 2.0-compliant post-quantum cryptography support. This aims to enhance security for computing, industrial, and automotive applications (Key Developments).
• Lattice Semiconductor has been dropped from the PHLX Semiconductor Sector Index (Key Developments).

Valuation Changes

• Fair Value Estimate increased from $69.85 to $78.77, reflecting a higher consensus on the company’s worth.
• Discount Rate edged up from 10.06% to 10.48%, indicating a modest rise in perceived investment risk or required return.
• Consensus Revenue Growth forecast grew from 16.30% to 17.50%, suggesting stronger topline expectations.
• Net Profit Margin projection decreased from 25.04% to 23.01%, signaling expectations for slightly lower profitability.
• Future P/E Ratio estimate climbed from 64.35x to 76.49x, pointing to higher anticipated valuations relative to future earnings.