What Happened?
Shares of semiconductor designer Lattice Semiconductor (NASDAQ: LSCC) jumped 11.9% in the afternoon session after the company reported second-quarter financial results that met expectations and provided an upbeat forecast for the third quarter, driven by strong growth in its data center business. The semiconductor firm posted revenue of $124 million and adjusted earnings of $0.24 per share, with its Communications and Compute segments expanding 20%. For the upcoming quarter, Lattice projected revenue between $128 million and $138 million.
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What Is The Market Telling Us
Lattice Semiconductor’s shares are very volatile and have had 28 moves greater than 5% over the last year. But moves this big are rare even for Lattice Semiconductor and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 3.2% as the U.S. jobs report for July came in significantly weaker than expected while new widespread import tariffs were announced, sparking fears of a potential economic slowdown. The U.S. economy added only 73,000 jobs, far below estimates, and massive downward revisions to the prior two months painted a much weaker picture of the labor market. This has stoked recession fears, which would directly impact demand for chips used in countless products. Compounding these worries, the White House announced new tariffs, including a 20% levy on imports from Taiwan, a global hub for chip manufacturing. This dual shock of slowing domestic growth and renewed trade friction creates a challenging outlook for the highly cyclical and globally connected semiconductor industry, leading to a broad-based sell-off.
Lattice Semiconductor is down 3.8% since the beginning of the year, and at $53.81 per share, it is trading 21.8% below its 52-week high of $68.78 from February 2025. Investors who bought $1,000 worth of Lattice Semiconductor’s shares 5 years ago would now be looking at an investment worth $1,718.
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