Lattice Semiconductor (LSCC) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Strategic overview and recent performance

• Shifted from a product to a solutions provider, focusing on security, rack management, power, cooling, and post-quantum cryptography across diverse markets.

• Reduced channel inventory from six to three months by end of 2025, returning to growth with consensus for 2026 growth above 25%.

• Maintained strong gross margin, operating profit, EBITDA, and free cash flow.

• Comms and compute expected to exceed 60% of revenue in 2026, with industrial and consumer segments remaining stable.

• Industrial segment expected to rebound in 2025 after inventory normalization, with new applications driving future growth.

Market positioning and partnerships

• Positioned as a "companionship" chip, supporting major processors and accelerators in data center AI, physical AI, and emerging applications.

• Partnerships with NVIDIA (Holoscan) and NXP enable integrated solutions for AI and edge applications.

• Collaborations with image sensor, LiDAR, and radar vendors simplify adoption for customers.

• Broad adoption across industrial, automotive, medical, aerospace, defense, and AR/VR markets.

Growth drivers and product strategy

• Revenue growth outpacing hyperscaler CapEx, driven by increasing server shipments, higher AI content, and expanding attach rates for FPGAs.

• Security, cooling, and new applications are expanding FPGA use cases and ASPs.

• New product revenue expected to reach mid-20% of total revenue in 2024, with Nexus ramping in 2026 and Avant in 2027.

• Humanoid robotics seen as a major future market, with significant FPGA content in vision and motor control, ramping from 2027.