What Happened?
Shares of semiconductor designer Lattice Semiconductor (NASDAQ: LSCC) jumped 3.3% in the morning session after a major AI-focused partnership in the chip sector boosted sentiment for stocks with exposure to the AI market.
The positive momentum was linked to an announcement that AMD and OpenAI entered into an agreement to power OpenAI's AI infrastructure with AMD's Instinct GPUs. This significant deal underscored the massive demand for advanced chips needed for artificial intelligence applications. The development occurred as the U.S. semiconductor manufacturing industry was already experiencing rapid growth, fueled by AI-driven demand and government support from initiatives like the CHIPS and Science Act.
After the initial pop the shares cooled down to $74.43, up 2.4% from previous close.
Is now the time to buy Lattice Semiconductor? Access our full analysis report here.
What Is The Market Telling Us
Lattice Semiconductor’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 3.4% on the news that Needham raised its price target on the stock to $80 from $70, pointing to strong growth driven by the artificial intelligence (AI) sector.
The investment firm maintained its 'Buy' rating on the shares following investor meetings with Lattice's management. In its research note, Needham highlighted that the company's Communications and Compute segments were expected to see robust growth, fueled by rising demand from AI servers. This positive outlook from the analyst seemed to be supported by the company's own forecasts. Lattice had previously stated that its AI-related revenue was on track to account for a mid-20% share of total revenue in 2026. The broader semiconductor industry has also seen a significant shift, with AI applications becoming a key driver of innovation and demand across the supply chain.
Lattice Semiconductor is up 33% since the beginning of the year, and at $74.43 per share, it is trading close to its 52-week high of $74.71 from September 2025. Investors who bought $1,000 worth of Lattice Semiconductor’s shares 5 years ago would now be looking at an investment worth $2,497.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.
