Lattice Semiconductor Making Key Plays In AI Super Bowl

2026-02-20 18:12:20

Lattice Semiconductor (LSCC) might not get much attention in the chip sector around artificial intelligence but it is a critical support player as cloud service providers and others build AI data centers.

“With the Super Bowl still fresh on everyone’s mind, I will use a sports analogy,” Lattice Chief Executive Ford Tamer said on a Feb. 10 conference call with analysts. “The primary processors — GPUs, custom AI accelerators, CPUs and MPUs — are the system’s most valuable players or MVPs. These MVPs are powerful but cannot win a game, let alone a championship, without a team. And Lattice is that team.”

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Hillsboro, Ore.-based Lattice provides “companion chips” called field-programmable gate arrays, or FPGAs, that perform many critical system functions, Tamer said. Those functions include power sequencing, security control, input/output expansion, board-and-rack management and more.

Lattice can have 50 or more FPGA chips per server rack providing control and security functions. They work closely to support the graphics processing units, AI accelerators, central processing units and microprocessor units.

In addition to data center and client computing, Lattice serves the communications, industrial and automotive markets. Those latter two markets give it exposure to physical AI deployments, such as autonomous vehicles, robots and smart factories.

Lattice Stock Turnaround Story

Last year, communications and computing made up 56% of its revenue, followed by automotive and industrial at 37% and consumer devices at 7%.

In 2025, Lattice earned an adjusted $1.05 a share, up 17%, on sales of $523.3 million, up 3%. For the current year, Wall Street is predicting earnings of $1.56 a share, up 49%, on sales of $696.6 million, up 33%.

Lattice Semiconductor stock is a turnaround story. Sales and profits tumbled starting in fourth-quarter 2023 as a downturn in automotive and industrial markets left it with bloated inventories.

Lattice didn’t return to sales growth until third-quarter 2025, but at levels well below its late 2023 heights.

New Chief Executive At The Helm

The company’s board of directors hired Tamer as chief executive officer in September 2024. He previously served as CEO at networking-component maker Inphi. Tamer assembled an executive team including Chief Financial Officer Lorenzo Flores, hired in February 2025.

Lattice has now posted three consecutive quarters of earnings growth on a year-over-year basis and two straight quarters of revenue growth. Analysts polled by FactSet see sales growth accelerating for at least the next two quarters.

Susquehanna analyst Christopher Rolland likes what he sees at Lattice. He rates the stock as positive with a price target of 120. Lattice stock ended regular-session trading on Thursday at 95.10.

“While we have always appreciated Lattice’s portfolio of technologies and dedicated community of users, the prior management team lacked the vision to execute on a long-term growth strategy,” Rolland said in a Feb. 11 client note. “This new management team is ‘world class,’ as it has revamped the entire roadmap, bolstered its supply chain, and expanded into new markets that should allow the company to significantly accelerate revenue and expand margins much better than competitors.”

Lattice Semiconductor Is Recent Breakout

After its fourth-quarter earnings report on Feb. 10, Lattice stock surged to an all-time high of 108.08 two days later. It has since pulled back.

On Dec. 5, Lattice stock broke out of a 10-week consolidation pattern at a buy point of 76.61, according to MarketSurge.

AI data centers likely will continue to be the main driver of the company’s growth for the near term, analysts say. That business is being supported by heightened capital expenditures by hyperscalers. Plus, Lattice is benefiting from more chips per server and higher average selling prices for those chips.

“As AI servers disaggregate into processor boards, networking cards, security cards, power-and-cooling modules, storage, and other specialized blades, FPGAs show up everywhere in the data center,” Tamer said.

New Markets For Lattice Chips

Plus, Lattice has found new markets for its chips in aerospace and defense and even emerging humanoid robots.

“The potential expansion is vast because we are gaining share in markets where we were not big players,” Tamer said. “The best example is aerospace and defense that has gone from very little content in 2024 to we expect a very big year coming in 2027 across all geographies.”

KeyBanc Capital Markets analyst John Vinh is bullish on Lattice Semiconductor. He rates Lattice Semiconductor stock as overweight with a price target of 125.

“Lattice is a leading provider of low-power, small form factor FPGAs,” Vinh said in Feb. 10 report. “We believe the new management team has positioned LSCC to benefit from TAM (total addressable market) expansion of FPGAs and content expansion in 5G, edge AI, and cloud data center.”

Further, Vinh sees Lattice as a likely acquisition target.

Nice Setup For Year Ahead

Jefferies analyst Kevin Garrigan rates Lattice stock as buy with a price target of 135.

Lattice has a favorable setup to deliver beat-and-raise quarterly reports through 2026, Garrigan said in a Feb. 10 report.

“Data center AI and physical AI remain the two primary growth vectors into 2026 and beyond,” Garrigan said. Its growth in those markets will be fueled by innovative new products, such as its Avant and Nexus chips, he said.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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