Deteriorating demand and reduced investment spending raise concerns
- Lattice Semiconductor stock tumbles on weak guidance
- Deteriorating demand from automotive and industrial sectors
- Lower investment spending due to reduced demand
- ON Semiconductor also faces increasing risk to automotive demand
- Weakness in chip sector signals a bad sign for the general economy
- Chip recovery expected to be further delayed
Lattice Semiconductor stock is down 15% after disappointing guidance, citing weakening demand in the automotive and industrial sectors. The company’s third-quarter earnings were slightly better than expected, but the focus is on the fourth-quarter revenue forecast, which falls short of analysts’ expectations. CEO James Anderson attributes the weak order trends to softening demand from industrial and automotive customers, starting in Asia and spreading to Europe. Lattice’s difficulties mirror those of rival ON Semiconductor, which also faces increasing risk to automotive demand. The deterioration in orders from the auto sector is a concerning sign for the general economy, as it had been a strong area for chip makers. The economic weakness is expected to persist for the next two to three quarters, further delaying the anticipated chip recovery.
Public Companies: Lattice Semiconductor (LSCC), ON Semiconductor (ON)
Private Companies:
Key People: James Anderson (CEO), N. Quinn Bolton (Analyst)
Factuality Level: 8
Justification: The article provides specific information about Lattice Semiconductor’s stock performance, earnings, and guidance. It includes quotes from the CEO and an analyst, as well as comparisons to a rival company. The information is based on reported facts and statements from relevant sources.
Noise Level: 7
Justification: The article provides relevant information about Lattice Semiconductor’s disappointing guidance and the reasons behind it. It includes quotes from the CEO and an analyst, as well as mentioning the impact on the general economy. However, the article lacks in-depth analysis and does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Lattice Semiconductor stock
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the disappointing guidance and weakening demand for Lattice Semiconductor’s products. However, there is no mention of an extreme event.
