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5 Insightful Analyst Questions From Lattice Semiconductor’s Q2 Earnings Call

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Lattice Semiconductor delivered second quarter results that met Wall Street expectations, with the market reacting positively to the company’s steady execution amid a flat revenue environment. Management attributed this performance to robust demand in its Communications and Compute segment, particularly within server applications where CEO Ford Tamer noted, “Server segment growing year-on-year 85%... fueling the strength in the Comms and Compute.” The company also highlighted ongoing progress in reducing channel inventories in its Industrial and Automotive segment, which management believes positions the firm for a return to growth in those markets.

Is now the time to buy LSCC? Find out in our full research report (it’s free).

Lattice Semiconductor (LSCC) Q2 CY2025 Highlights:

  • Revenue: $124 million vs analyst estimates of $123.6 million (flat year on year, in line)
  • Adjusted EPS: $0.24 vs analyst estimates of $0.24 (in line)
  • Adjusted EBITDA: $42.23 million vs analyst estimates of $40.24 million (34.1% margin, 4.9% beat)
  • Revenue Guidance for Q3 CY2025 is $133 million at the midpoint, roughly in line with what analysts were expecting
  • Adjusted EPS guidance for Q3 CY2025 is $0.28 at the midpoint, above analyst estimates of $0.27
  • Operating Margin: 3.8%, down from 18.2% in the same quarter last year
  • Inventory Days Outstanding: 218, down from 225 in the previous quarter
  • Market Capitalization: $8.67 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 Q2 Earnings Call

  • Ruben Roy (Stifel): Asked how Lattice plans to benefit from growing AI infrastructure spend as a companion chip provider. CEO Ford Tamer pointed to strong server growth and rising attach rates, highlighting four factors including increased cloud CapEx and content gains.

  • Melissa Weathers (Deutsche Bank): Inquired about confidence in the business model and long-term revenue growth prospects. CFO Lorenzo Flores emphasized operational discipline and broad-based customer demand, while CEO Tamer reaffirmed the 15–20% growth target for 2026.

  • Christopher Rolland (Susquehanna): Probed the size and sustainability of Lattice’s opportunity with hyperscalers and GPU/AI server attach rates. Tamer described high attach rates and noted the company’s processor-agnostic positioning as an advantage.

  • Ezra Weener (Jefferies): Sought clarity on regional trends and timing of Industrial and Automotive recovery. Tamer cited strong backlog, book-to-bill ratios, and design wins, noting that automotive is a small part of revenue but seeing strength, especially in China and Europe.

  • Duksan Jang (Bank of America): Asked about the impact of tariffs and the normalization of Industrial and Automotive channel inventory. Flores said existing supply chain arrangements and customer flows limit direct tariff effects, and expects shipping to align with demand as inventory normalizes.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will closely track (1) the pace at which inventory in Industrial and Automotive returns to normal and how quickly this translates to revenue growth; (2) the ongoing strength in data center demand, especially for AI-driven applications that leverage Lattice’s FPGAs; and (3) the ramp of new product design wins in both established and emerging markets. Execution on margin stability and management of tariff-related risks will also be critical for sustained progress.

Lattice Semiconductor currently trades at $63.50, up from $48.75 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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