Lattice Semiconductor Corp

Lattice is a fabless leader in low-power field-programmable gate arrays. Shares rose after the company reported better-than-expected results and issued stronger-than-expected revenue and profit guidance, marking an important step forward under the new management team. Demand improved across the server, communications and industrial end markets. Lattice also announced a $1 billion acquisition of AMI, a leader in platform firmware and data center infrastructure manageability, which should expand its data center capabilities and broaden its addressable market. We believe the acquisition will accelerate Lattice’s profit cycle. We added to this CropSM position during the quarter.

Lattice is a fabless leader in low-power field-programmable gate arrays. Shares rose after the company reported better-than-expected results and issued stronger-than-expected revenue and profit guidance, marking an important step forward under the new management team. Demand improved across the server, communications and industrial end markets. Lattice also announced a $1 billion acquisition of AMI, a leader in platform firmware and data center infrastructure manageability, which should expand its data center capabilities and broaden its addressable market. We believe the acquisition will accelerate Lattice’s profit cycle. We added to this CropSM position during the quarter.

Lattice is a fabless leader in low-power field-programmable gate arrays. Shares rose after the company reported better-than-expected results and issued stronger-than-expected revenue and profit guidance, marking an important step forward under the new management team. Demand improved across the server, communications and industrial end markets. Lattice also announced a $1 billion acquisition of AMI, a leader in platform firmware and data center infrastructure manageability, which should expand its data center capabilities and broaden its addressable market. We believe the acquisition will accelerate Lattice’s profit cycle. We added to the position during the quarter.

Lattice Semiconductor has been a strong performer in the Cambiar SMID Value portfolio, contributing positively to returns during the quarter. The semiconductor industry is experiencing a significant boost due to the AI-driven demand cycle, which is seen as a structural opportunity rather than a temporary trend. The portfolio's exposure to Lattice Semiconductor and On Semiconductor has helped offset weaknesses in other holdings, indicating confidence in their growth potential amidst a favorable market environment.

Lattice Semiconductor is a fabless leader in low-power field-programmable gate arrays. The company reported strong quarterly results, with revenue and guidance exceeding expectations as demand accelerated across servers, communications and industrial applications. The company also announced plans to acquire AMI, a complementary firmware and infrastructure management platform expected to expand Lattice’s data center capabilities and broaden its addressable market. We added to the position during the quarter.

Lattice Semiconductor has been a standout performer in the Cambiar Small Cap Fund, benefiting from the strong demand trends driven by AI capital expenditures. The fund trimmed its position in response to a 149% gain during the quarter but continues to maintain exposure due to the accelerating demand trends in the semiconductor space. The manager views Lattice as a high-quality business that is well-positioned to capitalize on the ongoing growth in technology and AI sectors.

Lattice Semiconductor has shown strong performance, benefiting from a recovery in previously depressed industrial and automotive end markets, alongside increasing gains in newer AI server architectures. The company is positioned well within the semiconductor sector, which has seen significant growth, particularly with AI-related applications. This positions Lattice Semiconductor as a key player in the ongoing technological advancements and market demands.

We initiated positions in Lattice Semiconductor as we believe it is well-positioned to benefit from the ongoing AI investment boom. The company is expected to leverage its technology to create durable economic value, distinguishing itself in a competitive landscape. This aligns with our focus on fundamental differentiation and the potential for significant productivity gains in sectors utilizing AI.

We broadened our holdings to include Lattice Semiconductor, which we believe is well-positioned to benefit from the ongoing demand in AI infrastructure and datacenter construction. The tech sector's price movement throughout the quarter suggests that some risks are already priced in, presenting an opportunity for favorable forward returns. Our decision to add Lattice Semiconductor reflects our confidence in its growth potential amidst the evolving landscape of technology and semiconductors.

Lattice Semiconductor Corporation (LSCC) rose alongside other semiconductor companies viewed as beneficiaries of the AI investment cycle. This positions Lattice favorably within the growing demand for AI technologies, suggesting a strong future potential for the company as it capitalizes on this trend. The company's focus on high-speed programmable logic devices further enhances its competitive edge in the semiconductor market.