What Happened?

Shares of semiconductor designer Lattice Semiconductor (NASDAQ: LSCC) fell 4.9% in the afternoon session after new trade tensions and disappointing earnings from major tech companies weighed heavily on investor sentiment. 

A key driver was the news that the White House is considering new restrictions on Chinese exports that use U.S. software, a move that could significantly impact technology companies. This uncertainty over escalating trade tensions created a broad sense of worry in the market. Simultaneously, shares of the semiconductor giant Texas Instruments dropped 6% after its latest earnings and future revenue forecast both came in weaker than expected, which is a big concern for the health of the tech industry. This poor performance from Texas Instruments immediately dragged down the entire semiconductor sector, causing other major chipmakers like Advanced Micro Devices and Micron Technology to also see significant declines. 

Compounding the bad news, streaming service Netflix saw its stock slump 9% after it missed its earnings targets, partly blaming a tax dispute in Brazil. The combined effect of renewed trade war fears and the direct evidence of underperformance from influential companies in the technology sector was enough to push the major market indexes lower.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Lattice Semiconductor? Access our full analysis report here.

What Is The Market Telling Us

Lattice Semiconductor’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 9 days ago when the stock gained 3.6% on the news that the company introduced the industry's first secure control FPGAs with post-quantum cryptography support. 

The new chips, part of the MachXO5-NX TDQ family, were designed to address rising security concerns as advances in quantum computing threatened to make current cryptographic standards obsolete. These field-programmable gate arrays (FPGAs) target the computing, communications, industrial, and automotive sectors. 

According to Esam Elashmawi, Chief Strategy and Marketing Officer at Lattice, the advance of quantum computing increased the urgency for industries to adopt quantum-resistant security. The company confirmed that the new FPGA devices were already available and had shipped to communications and compute customers.

Lattice Semiconductor is up 19% since the beginning of the year, but at $66.59 per share, it is still trading 10.9% below its 52-week high of $74.71 from September 2025. Investors who bought $1,000 worth of Lattice Semiconductor’s shares 5 years ago would now be looking at an investment worth $1,915.

Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.