Lattice Semiconductor Surges 14% After Record Q3 Revenue and Strong Q4 Guidance Powered by AI Demand

Lattice Semiconductor posted record third-quarter 2026 revenue of $291 million, up 118% year over year, driven by accelerating data center AI demand and broad momentum across its end markets. FPGA revenue rose approximately 90% year over year, while GAAP gross margin came in at 67.4% and GAAP net income was $0.08 per diluted share. The results beat analyst expectations and prompted multiple Wall Street firms, including Stifel, Baird, and Rosenblatt, to raise their price targets on the stock.

For the fourth quarter of 2026, Lattice guided to revenue of approximately $335 million, implying roughly 130% year-over-year growth. The company also said it expects Industrial and Embedded revenue growth to accelerate to 70% year over year in the fourth quarter, a segment that had lagged Compute and Communications in earlier quarters. Looking further out, management said it expects full-year 2027 revenue to grow at least 60% year over year, citing strong bookings, backlog, and design win momentum tied to the AI server build-out.

Shares of LSCC opened Tuesday's session up more than 10% and extended gains to roughly 14.3% by the afternoon, leading the semiconductor sector higher. The Invesco Semiconductors ETF rose about 5% on the day, with Lattice among the standout contributors. Unusual call option volume in LSCC was also flagged by market observers, signaling elevated speculative interest following the results.