Forget the Biggest Chip Stocks — Analysts Say Buy These 2 Names

Lattice Semiconductor (LSCC) aims to achieve a $3B revenue run rate by 2030, targeting AI data center and physical AI markets. The company expects to exit 2025 with a $1.2B run rate, up from $520M in 2025. Lattice's FPGAs are used for secure management and control in complex AI infrastructure, with partnerships like NVIDIA. The company focuses on scalability, security, and sustainability in AI data centers.

Lattice Semiconductor (LSCC) shares rose 3.2% after Benchmark Equity Research initiated coverage with a Buy rating and $160 price target, citing market share growth and strategic acquisitions. The stock closed at $119.17, up 2.6%. Benchmark expects margin expansion from the $1.65B AMI acquisition. LSCC is up 51.8% YTD but 22.8% below its 52-week high.

Wall Street analysts issued upgrades, downgrades, and initiations for several companies. Upgrades include argenx (ARGX) to Buy at UBS, DT Midstream (DTM) to Outperform at Wolfe Research, and SolarEdge (SEDG) to Buy at UBS. Downgrades include Dick's Sporting Goods (DKS) to Hold at Truist, EPAM Systems (EPAM) to Neutral at JPMorgan, and Intuit (INTU) to Neutral at Bank of America. Initiations include Atlassian (TEAM) with Outperform at RBC, JFrog (FROG) with Outperform at RBC, and Lattice Semicond

Microchip Technology (MCHP) and 13 other analog semiconductor stocks reported Q2 earnings, with revenues beating estimates by 1.8% and next quarter's guidance 4.9% above. MCHP reported $1.48B revenue, up 38% YoY, and its stock is up 2.4%. Monolithic Power Systems (MPWR) had the strongest performance, while Himax (HIMX) had the slowest growth. The sector's stocks are down 2.2% on average since earnings.

BMO Capital Markets initiated coverage of semiconductor and quantum computing sectors, favoring AI-exposed and analog chipmakers. Nvidia (top pick) received an Outperform rating and $340 target, with expected revenue growth of 84% and 50% in FY27 and 2028. Other picks include Broadcom, Micron, AMD, Marvell, Semtech, Analog Devices, Microchip, and Impinj. BMO predicts a memory market supercycle and AI-driven capex growth.

Microchip Technology released Revision 2.0 of its PolarFire FPGA Ethernet Sensor Bridge, a smaller, production-ready board for sensor integration with NVIDIA Holoscan Sensor Bridge technology. The board is 60% smaller, supports twice the number of cameras, and is priced lower than the first generation. It is designed for AI-driven applications in medical, industrial, and robotics sectors, leveraging NVIDIA edge computing platforms like Jetson and IGX.