BofA Raises Lattice Semiconductor Price Target to $88 Amid Strong Q1 Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy LSCC?
Source: stocktwits
- Price Target Increase: BofA raised Lattice Semiconductor's price target from $74 to $88 while maintaining an 'Underperform' rating, indicating that despite the increase, the company faces competitive pressures, particularly in the AI computing sector.
- Revenue Growth Outlook: Lattice projects a 37% year-on-year revenue growth for Q1 2026, estimating between $158 million and $172 million, surpassing market expectations and highlighting the company's strong growth potential in AI and data centers.
- Positive Market Reaction: Shares of Lattice surged over 15% on Wednesday, attracting attention from Wall Street and retail investors, reflecting optimistic sentiment about the company's future growth, especially with a spike in discussion volume on Stocktwits.
- Analyst Rating Changes: In addition to BofA, analysts from Needham, Susquehanna, and Stifel also raised their price targets for Lattice, indicating a widespread market optimism regarding its future performance, particularly in the growth prospects of data centers and AI ecosystems.
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Analyst Views on LSCC
Wall Street analysts forecast LSCC stock price to fall
10 Analyst Rating
9 Buy
0 Hold
1 Sell
Strong Buy
Current: 99.795
Low
74.00
Averages
80.11
High
85.00
Current: 99.795
Low
74.00
Averages
80.11
High
85.00
About LSCC
Lattice Semiconductor Corporation develops technologies and monetizes through differentiated programmable logic semiconductor products, system solutions, design services, and licenses. The Company is focused on solving customer problems across the network, from the Edge to the Cloud, in the communications, computing, industrial, automotive and consumer markets. It also serves its customers with intellectual property (IP) licensing and various other services. The Company's product development activities include new proprietary products, advanced packaging, existing product enhancements, software development tools, soft IP, and system solutions for high-growth applications, such as Edge Artificial Intelligence (AI), fifth generation (5G) infrastructure, platform security, and factory automation. Its field programmable gate array (FPGA) devices enable it to provide its customers with a growing base of control, connect, and compute technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Optimistic Guidance: Management forecasts first-quarter revenue between $158 million and $172 million, representing over 37% year-over-year growth, with adjusted EPS at a midpoint of $0.36, reflecting a 64% year-over-year increase, significantly above Wall Street's $160 million estimate.
- Data Center Growth: The data center segment's contribution to Lattice's total revenue rose from 49% in the same quarter last year to 64%, indicating a positive impact from the AI revolution, despite ongoing challenges in the industrial and automotive sectors.
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- Data Center Dominance: The data center segment now constitutes 64% of Lattice's total revenue, up from 49% a year ago, highlighting a strategic shift driven by the AI revolution that enhances the company's competitive position in the semiconductor market.
- Strong Q1 Guidance: Management forecasts Q1 revenue between $158 million and $172 million, representing over 37% year-over-year growth, with adjusted EPS at a midpoint of $0.36, reflecting a robust 64% annual increase and showcasing the company's optimistic outlook for the future.
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- Interest Rate Expectations Shift: Following the stronger-than-expected jobs report, the 10-year T-note yield increased by 3 basis points to 4.17%, with market expectations for a Fed rate cut next month dropping from 23% to 8%, reflecting investor caution regarding future monetary policy.
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