Lattice Semi Stock Snags Price Target Hike After Q1 Print: Retail Stays Cautious

Lattice Semiconductor Corp. (LSCC) stock received a price target boost from Baird after the company announced first-quarter results that aligned with Wall Street's expectations, driven by strong demand for new applications, including artificial intelligence (AI).

The Hillsboro, Oregon-based firm, which makes field programmable gate arrays, reported adjusted earnings per share (EPS) of $0.22 and revenue of $120.15 million for the first quarter of the fiscal year 2025.

The EPS and revenue aligned with the Finchat-compiled consensus estimates.

Gross margin expanded year over year (YoY) to 69% from 62%, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved to 33.4% from 24.8%.

CEO Ford Tamer said, "The first quarter of 2025 developed as expected, with sequential revenue growth, a record level of design wins, and a further expansion of our operating margins."

The executive attributed the strength to new applications, notably in generative artificial intelligence (GenAI) in the data center, robotics in industrial, in-cabin and autonomous driver assistance systems (ADAS) in automotive, augmented reality (AR)/virtual reality (VR) in consumer, security, including post-quantum cryptography, and far-edge AI for lower-power applications.

Lattice Semi said it was monitoring the market environment and the broader industry, as they could impact its outlook.

The company guided second-quarter revenue between $118.5 billion and $128.5 billion and adjusted EPS between $0.22 and $0.26. Wall Street expected $0.24 and $123.63 million, respectively.

Commenting on the results, Baird analyst Tristan Gerra said the data center strength combined with gross margin past a trough highlights the business's resiliency and defensiveness versus more commodity segments. 

He noted no change to the second-half revenue outlook despite tariff uncertainties.

The analyst upped the price target for Lattice Semi stock to $50 from $42 and maintained an 'Outperform' rating. 

On Stocktwits, retail sentiment toward the Lattice Semi stock was 'neutral' (47/100) by late Monday, but the message volume stayed 'high.'

Lattice Semi stock has lost about 8% this year. The Koyfin-compiled consensus price target for the stock is $64.02, suggesting a 22% upside from Monday's close.

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