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LSCC Rides on Strong AI-Related Demand: Will the Uptrend Persist?
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Key Takeaways
LSCC posted 42% first-quarter 2026 revenue growth, backed by record Compute and Communications sales.
Lattice is expanding AI reach through NVIDIA and Texas Instruments collaborations and the AMI deal.
LSCC guided for up to $195M in Q2 2026 revenue and cited bookings extending backlog into 2027.
Lattice Semiconductor (LSCC - Free Report) is benefiting from accelerating AI infrastructure and data center demand. The company’s field-programmable gate array solutions are designed to solve several major challenges in modern AI data centers, including secure control, hardware acceleration, storage management, GPU and network card support. Amid growing complexities Lattice has positioned itself as a major supplier of programmable control and connectivity infrastructure.
It is also expanding its AI ecosystem presence through its collaboration with NVIDIA. Beyond cloud AI infrastructure, Lattice is broadening its exposure to edge AI through its collaboration with Texas Instruments.
The company inked an agreement to acquire AMI to strengthen its secure management and control platform offerings. The acquisition is expected to expand Lattice’s capabilities in server management, security, and data center infrastructure, creating a more comprehensive platform for enterprise and AI-driven applications. Such strategic collaborations and strategic acquisitions bode well for sustainable growth.
This strong AI-related momentum is driving revenue growth. First-quarter 2026 revenues grew 42% year over year to $170.9 million, supported by record Compute and Communications revenue, and management cited bookings that extend backlog into 2027. Second-quarter 2026 guidance calls for revenue of $175 million to $195 million and non-GAAP EPS of 42 cents to 46 cents, which frames continued demand and operating leverage in the near term.
Other Tech Firms Benefiting From AI Infrastructure Expansion
The growing proliferation of AI-based applications and generative AI tools across industries presents a solid growth opportunity for Celestica, Inc. (CLS - Free Report) . AI investments are driving demand for Celestica’s enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions, and servers and storage-related products. To further capitalize on this trend, Celestica is steadily expanding its offering through innovation and strategic collaboration.
Intel Corporation (INTC - Free Report) is gaining solid traction in the AI infrastructure market. Super Micro Computer, a global leader in high-performance, energy-efficient IT solutions, has opted to deploy Intel’s Xeon 6 Processors in its 4-socket servers for large-scale database and enterprise applications. Intel has also revealed that several industry leaders across industries, including AT&T, Verizon, Samsung and Ericsson, are leveraging Xeon 6 for network transformation and AI acceleration. The AI infrastructure market is expected to grow substantially in the upcoming years. Intel’s growing market traction in this vertical augurs well for long-term growth.
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LSCC Rides on Strong AI-Related Demand: Will the Uptrend Persist?
Key Takeaways
Lattice Semiconductor (LSCC - Free Report) is benefiting from accelerating AI infrastructure and data center demand. The company’s field-programmable gate array solutions are designed to solve several major challenges in modern AI data centers, including secure control, hardware acceleration, storage management, GPU and network card support. Amid growing complexities Lattice has positioned itself as a major supplier of programmable control and connectivity infrastructure.
It is also expanding its AI ecosystem presence through its collaboration with NVIDIA. Beyond cloud AI infrastructure, Lattice is broadening its exposure to edge AI through its collaboration with Texas Instruments.
The company inked an agreement to acquire AMI to strengthen its secure management and control platform offerings. The acquisition is expected to expand Lattice’s capabilities in server management, security, and data center infrastructure, creating a more comprehensive platform for enterprise and AI-driven applications. Such strategic collaborations and strategic acquisitions bode well for sustainable growth.
This strong AI-related momentum is driving revenue growth. First-quarter 2026 revenues grew 42% year over year to $170.9 million, supported by record Compute and Communications revenue, and management cited bookings that extend backlog into 2027. Second-quarter 2026 guidance calls for revenue of $175 million to $195 million and non-GAAP EPS of 42 cents to 46 cents, which frames continued demand and operating leverage in the near term.
Other Tech Firms Benefiting From AI Infrastructure Expansion
The growing proliferation of AI-based applications and generative AI tools across industries presents a solid growth opportunity for Celestica, Inc. (CLS - Free Report) . AI investments are driving demand for Celestica’s enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions, and servers and storage-related products. To further capitalize on this trend, Celestica is steadily expanding its offering through innovation and strategic collaboration.
Intel Corporation (INTC - Free Report) is gaining solid traction in the AI infrastructure market. Super Micro Computer, a global leader in high-performance, energy-efficient IT solutions, has opted to deploy Intel’s Xeon 6 Processors in its 4-socket servers for large-scale database and enterprise applications. Intel has also revealed that several industry leaders across industries, including AT&T, Verizon, Samsung and Ericsson, are leveraging Xeon 6 for network transformation and AI acceleration. The AI infrastructure market is expected to grow substantially in the upcoming years. Intel’s growing market traction in this vertical augurs well for long-term growth.
Lattice's Price Performance, Valuation & Estimates
Lattice’s shares have soared 168.3% over the past year compared with the industry’s growth of 94.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, LSCC trades at a forward price-to-earnings ratio of 68.72, higher than the industry average of 34.83.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 16.34% to $1.78 over the past 60 days, while the same for 2027 have also increased 16.33% to $2.28.
Image Source: Zacks Investment Research
Lattice currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.