Lattice Semiconductor (NasdaqGS:LSCC) Q4 2025 Earnings call February 10, 2026 05:00 PM ET Company ParticipantsFord Tamer - CEOJoshua Buchalter - Managing DirectorLorenzo Flores - CFORick Muscha - VP of Investor RelationsConference Call ParticipantsChristopher Rolland - Senior AnalystGary Mobley - Senior AnalystKevin Garrigan - Equity Research AnalystMelissa Weathers - Equity Research AnalystQuinn Bolton - Senior AnalystRuben Roy - Senior AnalystSrini Pajjuri - Senior AnalystOperatorGreetings and welcome to ...

Lattice Semiconductor (NasdaqGS:LSCC) Q4 2025 Earnings call February 10, 2026 05:00 PM ET Company ParticipantsFord Tamer - CEOLorenzo Flores - CFORick Muscha - VP of Investor RelationsConference Call ParticipantsChristopher Rolland - Senior AnalystGary Mobley - Senior AnalystJoshua Buchalter - Equity Research AnalystKevin Garrigan - Equity Research AnalystMelissa Weathers - Equity Research AnalystQuinn Bolton - Senior AnalystRuben Roy - Senior AnalystSrini Pajjuri - Senior AnalystOperatorGreetings and welco ...

Lattice Semiconductor FY Conference Summary Company Overview - **Company**: Lattice Semiconductor (NasdaqGS:LSCC) - **Industry**: Semiconductor, specifically low-power programmable devices - **Market Position**: Leading provider with over 40 years of innovation in the programmable market - **Key Markets**: Communications, computing, industrial, automotive, and consumer markets [1][2] Core Business Insights - **Revenue Breakdown**: - Communications and computing account for over 50% of revenue - Server business grew 80% year-on-year - Communication segment grew 63% year-on-year - Industrial automotive segment is expected to return to growth in 2026 [3][22] - **Production Volume**: Shipped over 150 million units last year, expected to increase to 180 million this year [3] Strategic Pillars 1. **Companion Role**: Lattice provides support functions for powerful ASICs, enhancing their performance and functionality [4][5] 2. **Small and Mid-Range FPGA Roadmap**: Focused on developing the best roadmap for small and mid-range FPGAs, emphasizing low latency, high precision, and parallel processing capabilities [15][18] 3. **Sustainable Growth**: The company aims for sustainable growth through innovation and expanding its product portfolio [18][19] Market Trends and Growth Drivers - **Disaggregation in AI Servers**: Transition from single board to multiple specialized boards (processor, networking, storage, etc.) is increasing FPGA usage per rack [25][26] - **CapEx Growth**: Anticipated 50% growth in capital expenditures for cloud service providers, contributing to demand for FPGAs [26] - **AI Server Growth**: AI servers currently represent 12% of total servers, with higher FPGA content compared to traditional servers [27][28] Financial Performance and Projections - **Gross Margin**: Currently at 69%-70%, with strong EBITDA and free cash flow [21] - **Long-Term Growth Rate**: Expected to be between 15%-20%, with a consensus growth rate of 21% for the current year [21][23] - **2026 Outlook**: Anticipated to be a strong year for data centers and small FPGAs, with growth in industrial automotive expected to ramp up in 2027 [22][23] Competitive Landscape - **Main Competitors**: Xilinx is the primary competitor, with Altera being monitored for potential aggressive moves in the market [39][40] - **Market Differentiation**: Lattice emphasizes its unique low-power, small FPGA architecture as a sustainable competitive advantage [39] Capital Allocation and M&A Strategy - **Focus on Organic Growth**: Prioritizing organic investments in product expansion and innovation [41] - **Potential for Inorganic Growth**: Open to strategic acquisitions to enhance customer offerings and capabilities [42][43] Conclusion - Lattice Semiconductor is well-positioned for growth in the semiconductor industry, particularly in low-power programmable devices, with a strong focus on innovation, market expansion, and strategic partnerships. The company is set to capitalize on emerging trends in AI and data centers while maintaining a competitive edge through its unique product offerings and robust financial health [20][44]

Avalanche Ecosystem Overview - Avalanche boasts a diverse ecosystem with numerous applications currently available [1] - The ecosystem includes a wide range of projects, indicating a vibrant and active developer community [1] Application Categories - Applications span various categories, including DeFi (Yield Yak, Benqi), gaming (Off The Grid, Maplestory U, Leagues fun), and infrastructure (Core App) [1] - Other applications include tools and platforms like Pharaoh, Arena, Salvor, Coqbook, The City, Tesseract, Blackhole, Hypha, Juicy, LFJ, Avant, Predictfully, and Enclave [1] Potential for Growth - The "and many more" suggests continuous expansion and new projects joining the Avalanche ecosystem [1]

Group 1 - The travel car segment is characterized by high keyboard value, with notable models including Audi's Avant, Allroad, BMW's Touring, Mercedes-Benz's Estate, All-Terrain, and Volvo's V series, CrossCountry [1] - The article questions how the Xiangjie S9T differentiates itself from these well-known predecessors in the travel car market [1]

Core Insights - The FPGA market is projected to grow from $11.14 billion in 2025 to $18.76 billion by 2030, with a CAGR of 10.98% during this period [2] - AMD and Lattice Semiconductor (LSCC) are key players in this market, with AMD benefiting from its acquisition of Xilinx and LSCC focusing on low-power FPGA solutions [1][7] AMD Insights - AMD's acquisition of Xilinx has allowed it to expand into various embedded markets, including CPUs, GPUs, and FPGAs [3] - The latest VP1902 adaptive SoC from AMD features 18.5 million logic cells, doubling the programmable logic density compared to the previous generation [4] - In Q1 2025, AMD launched a high-performance 5G core powered by the Virtex UltraScale+ XCVU5P FPGA and completed initial shipments of cost-optimized Spartan UltraScale Plus FPGAs [5] - AMD is enhancing partnerships with major cloud providers like AWS, which launched FPGA-accelerated instances powered by AMD's EPYC processors and Xilinx Virtex FPGAs [6] LSCC Insights - LSCC is experiencing strong demand for its small and mid-range FPGA solutions, particularly with its Nexus and Avant product families [7] - The company is targeting high-growth applications such as AI, data centers, and advanced driver-assistance systems in automotive [8] - In February 2025, LSCC validated Everspin Technologies' MRAM for use across its FPGAs, enhancing suitability for mission-critical applications [9] Performance and Valuation - Year-to-date, AMD shares have decreased by 6.9%, while LSCC shares have fallen by 1.4% due to a challenging macroeconomic environment [10] - Both AMD and LSCC shares are currently considered overvalued, with AMD trading at a forward Price/Sales ratio of 5.41X and LSCC at 13.91X [13] - The Zacks Consensus Estimate for AMD's 2025 earnings is $4.09 per share, reflecting a 23.56% year-over-year increase, while LSCC's estimate is $1.05 per share, indicating a 16.67% increase [16] - AMD has consistently beaten earnings estimates, while LSCC has missed estimates in two of the last four quarters [17] Conclusion - AMD's portfolio expansion and partnerships position it for significant growth in the FPGA market, while LSCC's focus on low-power solutions captures emerging opportunities [18] - AMD is rated higher than LSCC, with a Zacks Rank of 3 (Hold) compared to LSCC's 4 (Sell) [18]

Summary of Lattice Semiconductor Conference Call Company Overview - **Company**: Lattice Semiconductor - **Industry**: FPGA (Field-Programmable Gate Array) market Key Points and Arguments 1. **FPGA Market Positioning**: Lattice operates in the FPGA market, positioned between ASICs (Application-Specific Integrated Circuits) and microcontrollers, offering higher performance than microcontrollers while being more flexible than ASICs [3][4][5] 2. **Market Size and Share**: The current FPGA market is approximately $7.5 billion, with Lattice holding a market share of about $500 million. Major competitors include Xilinx ($4.5 billion), Altera ($1.5 billion), and Microchip ($0.5 billion) [9][10] 3. **Growth Projections**: Lattice anticipates significant growth in the small and mid-range FPGA markets, with inflection points expected in 2026 for small FPGAs and 2027 for mid-range FPGAs [10][11] 4. **Revenue Breakdown**: Revenue is derived from four major markets: industrial and automotive (45%), communications and compute (45%), and consumer (9%) [11][12] 5. **Product Lines**: Key product lines include Nexus (small FPGA) and Avant (mid-range FPGA), with a focus on enhancing customer programming ease through silicon, tools, IP, and solutions [11][27] 6. **Software Strategy**: Lattice is investing in software solutions to enhance ease of use for customers, with six unique solutions aimed at various applications, including security and industrial automation [27][30] 7. **AI and Compute Market**: Lattice sees significant opportunities in AI servers, with an estimated content opportunity of $300 to $500 per rack, and has established partnerships with major players like NVIDIA [13][14] 8. **Supply Chain Management**: The company is diversifying its supply chain to mitigate risks associated with tariffs and geopolitical tensions, maintaining a non-China, non-Taiwan supply chain [39][42] 9. **Gross Margin Trends**: Lattice has maintained resilient gross margins, with a focus on balancing growth and margin improvement through disciplined investment in R&D and sales support [50][51] 10. **Market Recovery**: The company is experiencing a U-shaped recovery, with expectations for continued growth in the communications and compute sectors, while industrial and automotive markets are expected to regain strength [59][60] Additional Important Insights - **Motion Control Opportunities**: Lattice has identified motion control as a key area for growth, leveraging its FPGA technology for parallel processing advantages, which enhances performance and reduces latency [63][64] - **Management Team Alignment**: The CEO and CFO emphasize a shared vision for driving shareholder value and disciplined growth strategies, focusing on customer needs rather than competition [18][21][32] - **Inorganic Growth Opportunities**: Lattice is open to exploring inorganic growth opportunities in areas such as security, vision, and edge AI, while maintaining a disciplined approach to acquisitions [46][47] This summary encapsulates the essential insights from the conference call, highlighting Lattice Semiconductor's strategic positioning, market dynamics, and growth prospects within the FPGA industry.