Lattice Semiconductor Corporation (LSCC): A Bull Case Theory

Core Thesis - Lattice Semiconductor Corporation is positioned as a key player in the AI infrastructure supercycle, focusing on low-power FPGAs for control, connectivity, security, and edge intelligence [3][9] Financial Performance - As of February 19th, Lattice's share price was $95.10, with trailing and forward P/E ratios of 4.88k and 64.10 respectively [1] - The company experienced a 31% revenue decline in 2024 due to industrial and telecom inventory digestion, yet maintained gross margins in the high-60% range and generated strong free cash flow [4] - Guidance for Q4 2025 suggests over 20% year-over-year growth, with consensus projecting accelerating revenue and EPS through 2026 [6] Market Positioning - Lattice's devices are integrated around CPUs, GPUs, NICs, switches, and emerging co-packaged optics architectures, serving as secure root-of-trust controllers and interface bridges rather than competing directly with compute silicon [5] - The company has shifted focus towards mid-range Avant FPGAs and AI server networking, while also expanding R&D efforts, including a new engineering center in Pune, India [3] Growth Potential - The Communications and Computing sectors are expected to rebound strongly through 2025, with FPGA attach rates increasing to approximately 70 to 130 devices per hyperscaler rack in AI servers [5] - Lattice's asset-light model, debt-free balance sheet, and expanding mid-range FPGA footprint create a favorable investment outlook, particularly as AI complexity and security needs rise [7]