Lattice Semiconductor (LSCC): Assessing Valuation After Upbeat Earnings and Bullish 2026 Growth Outlook

Lattice Semiconductor (LSCC) jumped 4% following its latest earnings report, which matched expectations and emphasized strong customer demand in communications, data center, and AI infrastructure. Management’s upbeat guidance signals improving momentum after a market pullback.

See our latest analysis for Lattice Semiconductor.

Lattice’s strong earnings update and bullish outlook helped revive positive sentiment following a challenging stretch for the stock. After a dip earlier this year, momentum is picking up, with the latest share price at $65.3 and a 16.7% year-to-date return. The total shareholder return over the past year has reached an impressive 28.7%, which signals that both short- and longer-term performance are heading in the right direction as investor confidence rebounds.

If the recent turn in Lattice’s fortunes has you searching for what’s next, consider exploring See the full list for free..

With the stock trading below analyst price targets and showing strong gains year to date, the key question is whether current levels offer a compelling entry or if the market is already pricing in Lattice’s future growth potential.

Most Popular Narrative: 17% Undervalued

The most widely followed narrative sets Lattice Semiconductor's fair value at $78.77, well above its last close of $65.3. This signals room for further upside if current growth assumptions are met.

The ongoing AI and edge computing boom is driving hyperscale data center spend and increasing Lattice's attach rate as a companion chip for AI accelerators, servers, and networking equipment. This leads to higher ASPs and robust design wins, which could accelerate revenue growth and support gross margin expansion.

Read the complete narrative.

Curious how a future packed with connected devices, rising margins, and a dramatic shift in market position supports this valuation? The narrative’s projections hinge on powerful earnings assumptions and revenue durability. Find out exactly which numbers shape this fair value by digging into the details.

Result: Fair Value of $78.77 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, potential earnings pressure from weak auto sector demand and increased trade policy volatility could still undermine the company's bullish outlook.

Find out about the key risks to this Lattice Semiconductor narrative.

Another View: Multiples Paint a Cautious Picture

Looking at valuation through price-to-sales, Lattice trades at 18x, which is almost double both its peer average (9.2x) and the broader US semiconductor industry average (4.5x). This premium suggests investors are expecting outperformance, but it also means less room for error if the anticipated growth does not materialize.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Lattice Semiconductor Narrative

If your perspective differs or you want to dig deeper, the data is at your fingertips. Craft your own take on Lattice's story in just minutes. Do it your way

A great starting point for your Lattice Semiconductor research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for More Investment Ideas?

Take the next step and seize your advantage by tapping into hand-picked opportunities. These tailored ideas help you spot trends and strengths before the crowd catches on.

• Unlock the potential of small-cap leaders by backing these 3589 penny stocks with strong financials with solid financials and a track record of resilience in ever-changing markets.
• Catalyze your strategy by targeting earnings growth from companies powering the AI revolution. See which standouts make the cut in these 26 AI penny stocks.
• Secure future gains by finding high-yield opportunities in these 15 dividend stocks with yields > 3% delivering dependable returns even when the market is volatile.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com