Lattice SemiconductorInterDigital

Lattice Semiconductor vs InterDigital

This page compares Lattice Semiconductor and InterDigital, Inc., examining their business models, financial performance, and market context in a neutral, accessible way. It looks at strategy, partners...

Which Baskets Do They Appear In?

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Investment Analysis

Pros

  • Lattice Semiconductor demonstrated consistent revenue growth with Q3 2025 revenues rising 7.6% quarter-over-quarter and 4.9% year-over-year.
  • The company maintains strong profitability with a non-GAAP gross margin near 69.5% and adjusted EBITDA of 35.6%.
  • Lattice benefits from increasing AI adoption across its product portfolio, particularly in communications and computing segments, supported by industry awards and partnerships.

Considerations

  • The company recently missed EPS expectations by a significant margin in Q3 2025, reporting $0.03 versus an expected $0.28.
  • Its stock has a high price-to-earnings ratio above 300, suggesting potential overvaluation or high growth expectations pricing in.
  • Lattice faces exposure to macroeconomic uncertainty and tariff risks that could impact near-term revenue and profit stability.

Pros

  • InterDigital has a strong intellectual property portfolio, licensing essential technologies in 5G and wireless communications to major global manufacturers.
  • The company benefits from steady royalty income, providing a recurring revenue stream with relatively high margins.
  • InterDigital is strategically positioned to capitalise on advancements in 5G and future wireless standards, supporting long-term growth potential.

Considerations

  • InterDigitalโ€™s revenues are heavily dependent on licensing deals, which can be volatile and subject to negotiation risks.
  • The cyclical nature of the semiconductor and telecommunications industries introduces exposure to broader macroeconomic and industry downturns.
  • Potential legal and regulatory challenges around patent licensing and intellectual property rights could impact earnings and licensing revenue.

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