Artificial Intelligence and Emerging Technologies Report

How is the Needle Moving on Two NASDAQ-Listed AI Ancilary Stocks: Lattice Semiconductor Corporation and Qorvo Inc

20 March 2024

LSCC
Investment Type
Large-cap
Risk Level
Low
Action
Buy
Rec. Price (AU$)
76.57
QRVO:NASDAQ
Investment Type
Large-cap
Risk Level
Low
Action
Buy
Rec. Price (AU$)
110.71

Lattice Semiconductor Corporation

Section 1: Company Fundamentals

1.1 Company Overview and Performance summary

Company Overview:

Lattice Semiconductor Corporation (NASDAQ: LSCC) is a low-power programmable solution provider that develops technologies and monetizes through differentiated programmable logic semiconductor products, system solutions, design services and licenses. The Company is focused on solving customer problems across the network, from the Edge to the Cloud, in the communications, computing, industrial, automotive and consumer markets.

This Global AI and Emerging Market Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

  • LSCC's share price has given a return of 8.33% in the past three months. However, in the long term, the stock has corrected by 16.51% over the past year.
  • The stock is currently trading near to the upper end of its 52-week range of USD 30 and 52-week low price of USD 51.96, with the expectations of an upside movement from the current support levels of USD 70-USD 75.
  • The price is currently between its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of around 52.71.

1.2 Summary Table

1.3 The Key Positives & Negatives

1.4 Key Metrics

In comparison to industry medians, Lattice Semiconductor (LSCC) has exhibited exceptional financial performance across various metrics in FY23. LSCC's gross margin stands notably higher at 69.8% compared to the industry median of 53.50%, reflecting superior efficiency in cost management. Similarly, LSCC outperforms industry norms in EBITDA margin, operating margin, pretax margin, and net margin, with figures of 33.7%, 28.8%, 29.1%, and 35.1% respectively, showcasing robust operational efficiency and profitability. Additionally, LSCC's return on equity (ROE) significantly surpasses industry standards, recording an impressive 43.90% against the industry median of 10.40%, underscoring the company's exceptional ability to generate returns for shareholders.

Section 2: Lattice Semiconductor Corporation (NASDAQ: LSCC) (“Buy” at the current market price of USD 76.57, as of March 20, 2024, at 06:50 am PDT)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

Qorvo Inc (NASADQ: QRVO)

Section 1: Company Fundamentals

1.1 Company Overview and Performance summary

Company Overview:

Qorvo, Inc. (NASDAQ: QRVO) is engaged in the development and commercialization of technologies and products for the wireless, wired and power markets. The Company operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG) and Advanced Cellular Group (ACG).

This Global AI and Emerging Market Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

  • QRVO's share price has given a return of 2.37% in the past three months. Similarly, in the long term, the stock has corrected by 10.11% over the past year.
  • The stock is currently trading near to the upper end of its 52-week range of USD 65 and 52-week low price of USD 80.62, with the expectations of an upside movement from the current support levels of USD 100-USD 110.
  • The price is currently above its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of around 45.00.

1.2 Summary Table

1.3 The Key Positives & Negatives

Section 2: Qorvo, Inc. (NASDAQ: QRVO) (“Buy” at the current market price of USD 110.71, as of March 20, 2024, at 06:45 am PDT)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is March 20, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stocks prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.


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