Forget the Biggest Chip Stocks — Analysts Say Buy These 2 Names
Lattice Semiconductor (LSCC) completed its $1.65B acquisition of AMI, reporting record Q2 revenue of $201.1M (up 62% YoY) and EPS of $0.53. Analyst Gary Mobley recommends 'Buy' with a $160 target, citing growth and market share gains. Microchip (MCHP) reported Q1 revenue of $1.485B (up 38% YoY) and EPS of $0.76. Analyst Harsh Kumar rates it 'Outperform' with a $95 target, highlighting margin expansion and demand growth.
How this was made
The 30-second read
Why it matters
Both companies delivered better‑than‑expected results, suggesting continued demand for FPGA and microcontroller solutions, which may drive sector momentum.
Market read
Earnings beats and strategic moves in the FPGA space could boost related stocks and sector ETFs.
What to watch
Potential supply‑chain constraints or macro slowdown could temper demand.
Background
The article reviews two smaller‑cap semiconductor companies, highlighting recent earnings beats, an acquisition, and analyst recommendations.
Ticker impact
Lattice reported Q2 2026 earnings with record revenue, EPS beat and announced a $1.65B acquisition of AMI.
Potential price rally of 30-40% over the next 12 months.
Revenue up 62% YoY, EPS beat, cash‑stock deal, and bullish analyst target of $160.
Microchip posted fiscal 1Q27 results with revenue beat, 38% YoY growth and raised earnings expectations.
Potential price gain of 20‑30% in the coming quarter.
Revenue $1.485B beat, EPS beat, strong automotive and data‑center demand, analyst target $95.
Market effects
Both stories reinforce bullish sentiment for the broader semiconductor and FPGA market.
U.S. chip sector gains may lift related tech indices.
Strong earnings from U.S. chip makers could influence global supply‑chain outlook.
Counterpoint
Valuations may already price in growth; execution risk on integration of AMI could limit upside.
Key entities
- CompanyLattice Semiconductor
Provider of programmable logic devices; completed $1.65B acquisition of AMI.
- CompanyMicrochip Technology
Broadline semiconductor supplier; reported strong Q1 2027 results.
