5. Lattice Semiconductor Corp. (NASDAQ:LSCC)
Short % of Shares Outstanding As of August 30: 8.83%
Market Capitalization as of September 14: $7.17 billion
Number of Hedge Fund Holders: 28
Lattice Semiconductor Corp. (NASDAQ:LSCC) is a semiconductor company specializing in the design and manufacturing of low-power field-programmable gate arrays that can be customized for various applications. It incorporates AI capabilities into its products, enabling smarter and more responsive devices in fields like machine learning, edge computing, and IoT.
The company had a slightly rough second quarter in 2024, with a 34.72% year-over-year decline in revenue, which came out at $124.08 million. This was $6.10 million lower than Street estimates. The earnings per share was still $0.23.
Despite strong demand, the company continued to under-ship products in Q2 due to inventory normalization. Industrial and automotive markets remained weak, with revenue down 23% sequentially. In communications and computing, revenue remained flat, with strength in data centers offsetting weakness in wireless. Management anticipates inventory normalization to continue through the second half of 2024.
Its small FPGA portfolio’s 7 to 5 family is ramping in Q3. Lattice Semiconductor Corp. (NASDAQ:LSCC) recently launched MachXO5D-NX and the latest Sentry solution stack, extending its leadership in security-focused hardware and software. It also launched Certus-NX-28 and Certus-NX-09, offering class-leading power efficiency, small size, and reliability.
In the mid-range FPGA portfolio, it launched 3 Avant devices. Avant-E achieved initial revenue last December and is expected to ramp throughout this year. The company aims for Avant-E and NX to achieve initial revenues before the end of this year. 90% of Avant customers are already Lattice customers. The Avant product line is generally strong, expanding TAM and driving long-term revenue growth.
The company’s hardware and software solutions are used in various AI applications, including data center servers, edge AI, and sensor data aggregation. It recently launched a Lattice NVIDIA Edge AI solution. Differentiated solutions position Lattice Semiconductor Corp. (NASDAQ:LSCC) for long-term growth.
Carillon Eagle Small Cap Growth Fund stated the following regarding Lattice Semiconductor Corporation (NASDAQ:LSCC) in its Q2 2024 investor letter:
“Lattice Semiconductor Corporation (NASDAQ:LSCC) provides chips used in various end markets. Investors have been disappointed this year as growth has slowed from last year’s much more robust pace. Furthermore, a surprising departure of the well-regarded CEO added to the shares pulling back. We believe the company is very well positioned to gain market share with its current line of products as well as new announcements that should help the company grow well above market rates for the next couple of years. The announcement of a permanent CEO from a well-regarded company also could alleviate concerns about the company’s management.”
