Lattice Semiconductor’s fourth quarter was marked by robust growth, reflecting strong demand in both data center artificial intelligence (AI) and physical AI applications. Management credited the quarter’s performance to expanded adoption of its low-power field-programmable gate arrays (FPGAs), which serve as companion chips in a wide array of systems. CEO Ford Tamer emphasized that Lattice’s solutions are now “being widely adopted at an accelerating rate,” noting that the company’s attach rates and average selling prices both increased. The business also benefited from successful normalization of channel inventory and record design wins across computing and communications sectors.
Is now the time to buy LSCC? Find out in our full research report (it’s free for active Edge members).
Lattice Semiconductor (LSCC) Q4 CY2025 Highlights:
- Revenue: $145.8 million vs analyst estimates of $143.2 million (24.2% year-on-year growth, 1.8% beat)
- Adjusted EPS: $0.32 vs analyst estimates of $0.32 (in line)
- Adjusted EBITDA: $53.2 million vs analyst estimates of $50.81 million (36.5% margin, 4.7% beat)
- Revenue Guidance for Q1 CY2026 is $165 million at the midpoint, above analyst estimates of $147.8 million
- Adjusted EPS guidance for Q1 CY2026 is $0.36 at the midpoint, above analyst estimates of $0.33
- Operating Margin: 0.7%, up from -10.4% in the same quarter last year
- Inventory Days Outstanding: 177, down from 193 in the previous quarter
- Market Capitalization: $13.35 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lattice Semiconductor’s Q4 Earnings Call
-
Ruben Roy (Stifel) sought clarity on how much growth in data center business was driven by unit volumes versus higher content per server. CEO Ford Tamer explained that attach rates exceeded three FPGAs per server, with rising average selling prices amplifying growth.
-
Melissa Weathers (Morgan Stanley) asked about the magnitude and sustainability of growth in communications, compute, and industrial segments. Tamer emphasized increased conviction in demand across segments, noting improved visibility and stronger bookings versus prior quarters.
-
Quinn Bolton (Needham & Company) questioned whether growth expectations in communications and compute could exceed previous guidance. Tamer and Flores confirmed that momentum is at or above prior high-end targets, with bookings extending into the following year.
-
Christopher Rolland (Susquehanna) inquired about inventory normalization in industrial and automotive segments. Tamer clarified that inventory management is now more responsive to customer demand, and channel inventory levels have been brought in line to support future growth.
-
Srini Pajjuri (SMBC Nikko Securities America) asked about supply constraints and potential for larger acquisitions. Tamer reported tightening lead times but said proactive sourcing minimized disruptions, and described ongoing small tuck-in acquisitions as strategic, with no urgency for larger deals.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) whether data center and AI server attach rates continue to climb and sustain momentum, (2) the pace of new product adoption—especially Nexus and AVANT families—in industrial and robotics markets, and (3) Lattice’s ability to manage supply chain constraints while maintaining operating leverage. Progress in securing high-value design wins and expanding partnerships with industry leaders will also be important indicators of the company’s execution.
Lattice Semiconductor currently trades at $97.01, up from $90.95 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
The Best Stocks for High-Quality Investors
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
