We recently published a list of 10 Stocks Everyone’s Talking About as Trump Softens His Tone on China. In this article, we are going to take a look at where Lattice Semiconductor Corporation (NASDAQ:LSCC) stands against other stocks everyone’s talking about as Trump softens his tone on China.
Investors are desperately looking for signs of a market bottom after going through massive volatility and losses. 3Fourteen Research’s Warren Pies said in a latest program on CNBC that we are getting “close” to a market bottom based on his technical analysis. The analyst talked about key indicators he’s looking for:
“I do think that the White House is trying to deescalate the situation. One of the markers we’ve seen is that Peter Navarro hasn’t been on TV since April 13th, and that’s corresponding with this equity rally. Setting that aside, though, I think that a bottom, a confirmed bottom, has two components. You need to see washed out sentiment and positioning. We measured that in a number of ways: we measured it in inverse ETFs for retail, we measured it for vault targeting for institutions, and CTAs for trend followers. Across all those metrics, sentiment is depressed. That’s phase one of a bottom. Then, you look for technical confirmation. Philosophically, we’re always going to be late because of that ordering.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article, we picked 10 stocks investors are currently focusing on. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Lattice Semiconductor Corporation (NASDAQ:LSCC)
Number of Hedge Funds Investors: 32
Lattice Semiconductor Corporation (NASDAQ:LSCC) recently received a Buy rating from Loop Capital, which cited the company’s potential to gain market share.
Loop sees strong growth ahead for Lattice Semiconductor Corp (NASDAQ:LSCC) as it expands in the field programmable gate array (FPGA) space. The firm projects compound annual growth in the high teens, driven by FPGAs gaining traction as cheaper, more flexible alternatives to application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs).
The firm set an $85 price target on the stock.
Lattice Semiconductor Corp (NASDAQ:LSCC) makes FPGAs and related chips used across sectors such as communications, computing, automotive, and industrial.
“We see three main drivers for 70%-plus and 40%-plus gross and operating margins, respectively, for LSCC (vs. 67%/25% in FY24),” said Loop analyst Gary Mobley in a note. “First, mix tailwinds will help (e.g., new product mix, software, end-market mix, etc.). Second, we see relatively good pricing power in the FPGA market, limited competition and a tailwind from newer products like Avant (as much as 20.0x ASP boost). Last, the move to lower cost regions like India & China for R&D should continue to act as a structural tailwind to LSCC’s R&D expenses.”
Artisan Small Cap Fund stated the following regarding Lattice Semiconductor Corporation (NASDAQ:LSCC) in its Q3 2024 investor letter:
“Among our top detractors were iRhythm, e.l.f. Beauty and Lattice Semiconductor Corporation (NASDAQ:LSCC). Lattice shares struggled due to cyclical pressures, most notably within its industrial end market, and a weak environment within the telecom business. We believe some of these ongoing headwinds are set to ease, but it may take longer than previously expected. Lattice expects a return to growth at the end of 2024 or early 2025, partly fueled by a steady flow of new product launches, which continues to drive market share gains. We remain patient.”
Overall, LSCC ranks 10th on our list of stocks everyone’s talking about as Trump softens his tone on China. While we acknowledge the potential of LSCC, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LSCC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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