China says Nvidia broke competition rules, extends probe; stock off lows
On Tuesday, Stifel analysts maintained their Buy rating on Lattice (OTC:LTTC) Semiconductor (NASDAQ:LSCC) shares, with a price target of $60.00. According to InvestingPro data, analyst consensus is strongly bullish, with targets ranging from $50 to $75, while 8 analysts have recently revised their earnings estimates upward for the upcoming period. The firm’s assessment followed Lattice Semiconductor’s first-quarter results, which aligned with management’s guidance and consensus estimates. The company reported a sequential revenue increase attributed to growth in the Industrial & Automotive (I&A) segment and server-based revenue. Additionally, Lattice Semiconductor achieved an operating margin of 26.2%, a significant rise from 17.1% in the previous quarter, and marked a record level of design wins.
The growth in revenue and operating margin was driven by the company’s performance in strategic areas such as general artificial intelligence (gen-AI), industrial robotics, Advanced Driver-Assistance Systems (ADAS), in-cabin automotive applications, Augmented Reality/Virtual Reality (AR/VR), security, and far-edge AI. Lattice Semiconductor’s guidance for the second quarter’s revenue and earnings per share (EPS) is consistent with market expectations, with a modest sequential increase projected.
Looking ahead, Lattice Semiconductor anticipates long-term single-digit growth by the year 2025. This forecast is based on the improvement in customer consumption and demand signals across various end markets. Despite this positive outlook, company management also cautioned about the potential impact of tariff-related headwinds on future growth. Stifel’s own projections for the company in 2025 are flat, aligning with their prior analysis, and they continue to hold a positive view on Lattice Semiconductor’s long-term prospects. For deeper insights into LSCC’s valuation and growth potential, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed analysis of the company’s financial health, valuation metrics, and growth prospects among 1,400+ top stocks.
In other recent news, Lattice Semiconductor reported its financial results for the first quarter of 2025, with earnings per share (EPS) of $0.22 and revenue of $120.15 million, both aligning with market expectations. Despite meeting these forecasts, the company experienced a 15% year-over-year revenue decline. Analysts from KeyBanc Capital Markets and Loop Capital Markets have adjusted their price targets for Lattice Semiconductor, citing changes in inventory levels and market conditions, with KeyBanc lowering its target to $70 while maintaining an Overweight rating, and Loop Capital setting a new target of $75 with a Buy rating. Needham analysts also reaffirmed a Buy rating with a $70 price target, acknowledging the company’s stable performance but expressing caution about potential tariff impacts.
Lattice Semiconductor’s management has reiterated its expectation for low single-digit percentage revenue growth in 2025, supported by increased customer consumption and a strong backlog of orders. The company continues to navigate challenges related to tariffs and inventory levels, with management indicating that normalizing channel inventory will take longer than initially expected. Despite these challenges, new products are projected to account for a significant portion of revenue in 2025, with anticipated growth in AI, robotics, automotive, and industrial markets. The company’s guidance for the second quarter of 2025 indicates expected revenue between $118.5 million and $128.5 million, reflecting a cautious outlook amid global trade uncertainties.
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