Lattice Semiconductor Sees Revenue Decline in 2024; Analysts Expect 2025 Recovery

Lattice Semiconductor (NASDAQ: LSCC) is grappling with significant revenue challenges as it navigates a downturn in the cyclical semiconductor industry. In its second-quarter results for 2024, the company reported a stark -35% year-over-year decline in revenues, largely attributable to a sharp -50% drop in its industrial and automotive segment—a segment that constitutes nearly half (49%) of Lattice’s overall revenue. Looking ahead, Visible Alpha consensus estimates show a continued contraction, with revenues expected to fall by -34% in the third quarter and by -23% in the fourth quarter of 2024.

However, analysts anticipate a recovery beginning in the first quarter of 2025, driven by a rebound in the communications and computing sectors, as well as a milder revenue decline in the industrial and automotive segment. Specifically, the communications and computing segment is expected to see a +11.6% year-over-year revenue increase in the first quarter of 2025, marking its first growth quarter since the second quarter of 2023. Meanwhile, revenue decline from the industrial and automotive segment are projected to ease to -12%. Overall, strong growth is expected across all of Lattice’s segments starting in the second quarter of 2025.