Lattice Semiconductor Etches New Buy Point With AI-Driven Smart Technology
For a third straight year, the Global Semiconductor Alliance has honored Lattice Semiconductor (LSCC) as a winner of the of the Most Respected Public Semiconductor Company. To celebrate, LSCC stock has now etched a new buy point in a cup with handle.
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With a 97 Composite Rating, the company earns top billing in the fabless semiconductor industry group. Top-rated industry peers include Impinj (PI), Mobileye (MBLY), Broadcom (AVGO) and Rambus (RMBS).
Boosted by 71% earnings growth last quarter, LSCC stock has landed a spot on the IBD 50, as well as the IBD Leaderboard watchlist.
Lattice Semiconductor Driving Growth With AI
As the low-power programmable chip leader, Lattice Semiconductor focuses on communications, computing, industrial, automotive and consumer markets.
Earlier this month, the semiconductor firm unveiled Lattice Avant, its newest chip design platform. Avant brings the company's power-efficient architecture, small size and performance leadership to midrange field-programmable gate arrays (FPGAs).
The platform enables Lattice to address an expanded set of customer applications across all its key markets. Company executives say the new product will double its total addressable market. Lattice's trailing 12-month sales totaled $626 million.
Through Lattice SenseAI, the company taps artificial intelligence and machine learning advances to help clients deploy applications for smart homes, smart cities, smart factories and smart cars. Lattice accelerates deployment of always-on, on-device AI into a wide range of edge applications, which reduce the amount of data to move, in turn lowing latency and transmission costs.
In recent years, Lattice has successfully boosted gross margins, generating a 1,280-basis-point improvement since 2019.
Over the last three quarters, the company has generated average earnings growth of 69%. In its next quarterly report in February, analysts expect Lattice Semiconductor to post a 78% EPS increase and an 88% gain for the full 2022.
In Stock Checkup, Lattice sports an A SMR Rating, reflecting its strong annual profit margins, return on equity and low debt.
LSCC Stock Flashes Strong Volume, Rising Relative Strength
With its relative strength line already hitting a new 52-week high, Lattice Semiconductor has built a narrow handle within long base. The stock is also extended from an early buy point after clearing a long downtrend line near 58.
The cup-with-handle entry is 73.63. On Monday, the stock rose over 2% in below-average, but rising volume.
Note the multiple heavy-volume up weeks in October and November — a clear sign of demand for LSCC stock. During that period, Lattice also gapped up in heavy trade on Nov. 10, further confirming demand.
As Lattice Semiconductor continues to approach the 73.63 buy point, look for the stock to continue to show demand and clear that entry in volume at least 40% above average.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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