Lattice: A Peculiar Little Growth Spurt

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Now, listen closely. There’s this company, Lattice Semiconductor – a rather unassuming name, isn’t it? – and its shares did a bit of a jig yesterday, leaping upwards like a startled frog. A good 12.2% jump, if you please, as of Wednesday afternoon. Quite the performance.

Lattice concocts these things called field-programmable gate arrays – FPGAs, for short. Sounds like a dreadful disease, doesn’t it? But they’re actually little silicon brains used in all sorts of gadgets. For years, they were mostly fiddling about in factories and automobiles, doing rather dull work. But then, something marvelous happened. The AI revolution arrived, and suddenly, these FPGAs were the most popular sweets in the candy store. They’re now essential for those enormous computer brains they’re building for data centers, and that, my friends, is where the real money is bubbling.

Last night, Lattice revealed its earnings, and they were… agreeable. But the truly scrumptious part wasn’t the earnings themselves, but what they hinted at. They foresee a rather spectacular acceleration in revenue for the current quarter. A truly greedy amount, if I may say so.

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Lattice’s Little Secret for 2026

In the last quarter, Lattice managed to swell its revenue by 24.2% – a respectable sum of $145.8 million. Analysts expected a good showing, and Lattice delivered. Earnings per share, adjusted of course (these companies and their adjustments!), climbed a whopping 116% to $0.32. Perfectly acceptable.

But the real reason for today’s giddy jump is this: Lattice predicts revenue between $158 and $172 million for the next quarter. That’s a growth rate of over 37%! And adjusted earnings per share? A delightful $0.36. Wall Street was expecting something around $160 million, so Lattice has rather outdone itself. It’s like a mischievous imp playing tricks on the serious grown-ups.

This acceleration, unsurprisingly, is coming from those data center brains. They now account for a whopping 64% of Lattice’s revenue, up from 49% just a year ago. The industrial and automotive bits are still a bit glum, mind you, but the bosses there are whispering about a recovery. They’ve been in a slump for ages, poor dears.

Not Quite a Bargain, But a Curious Creature

This surge is a pleasant little bump for Lattice, but the stock has been anticipating something like this for some time. It’s climbed about 150% since April 2025 – a rather vigorous ascent. And currently, it trades at 64 times this year’s earnings estimates. A hefty price, even with a 50% earnings growth already baked in. It’s as if everyone already knows the secret, and is willing to pay a fortune for a slice of the pie.

So, while the AI revolution and a stabilizing auto and industrial world should certainly propel earnings higher this year, much of that upside appears to be… accounted for. It’s a curious creature, this Lattice. A bit expensive, perhaps, but undeniably… interesting. One might even say, deliciously so.

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2026-02-11 23:33