Lattice Semiconductor (LSCC) traded flat in premarket activity Thursday, holding steady at approximately $105.85 after a significant rally in the prior session. The stock had closed Wednesday up 16.3% following the company's encouraging financial results and forward guidance.
Upbeat Outlook Drives Momentum
The chipmaker projected first-quarter revenue in the range of $158 million to $172 million, surpassing analyst expectations. For the fourth quarter, Lattice reported revenue of $145.8 million with adjusted earnings of $0.32 per share. The company also announced its board authorized an additional $250 million for share repurchases, building on a program that saw about $100 million bought back in 2025.
CEO Ford Tamer highlighted a standout performance in the server segment, noting revenues surged approximately 85% year-over-year. He also indicated the company's field-programmable gate array (FPGA) attach rates in servers are on track to exceed three units per server in 2026.
Analysts React Positively
Wall Street firms responded to the report by raising their price targets on the stock. KeyBanc increased its target to $125 from $95, maintaining an Overweight rating. Stifel lifted its target to $110 from $80, reiterating a Buy rating. Both firms cited the company's quarterly performance and improved guidance as key drivers.
Lattice specializes in low-power, reprogrammable FPGAs used in data centers, communications hardware, and industrial applications. The company's focus on power-efficient "companion" chips for embedded and edge computing provides a niche advantage, though it also exposes the business to cyclical industrial demand.
Investor attention now turns to the company's ability to maintain its momentum, particularly in the data center market. While the company posted a GAAP net loss of $7.6 million for the quarter, the market's positive reaction suggests confidence in its adjusted profitability and growth trajectory.
