Lattice Semi Posts 42% Q1 Growth, Moves to Acquire AMI for $1.65B 

Lattice Semiconductor reported Q1 2026 revenue of $170.9 million, up 42.2% year-over-year, driven by strong demand across compute, communications, industrial, and embedded markets. The company posted GAAP gross margin of 68.8% and non-GAAP gross margin of 70.0%, with non-GAAP EPS rising 86% year-over-year to $0.41. Compute and Communications reached record revenue levels, supported by AI-related server demand and increasing adoption of Lattice’s low-power FPGA portfolio.

Operating leverage improved materially during the quarter, with non-GAAP operating income rising 86.2% year-over-year and adjusted EBITDA margin reaching 39.6%. The company highlighted strong design win momentum and backlog visibility, positioning the business for what it describes as a multi-year expansion cycle. For Q2 2026, Lattice expects revenue in the range of $175 million to $195 million, implying roughly 50% year-over-year growth at the midpoint, alongside continued ~70% non-GAAP gross margins.

Separately, Lattice announced a definitive agreement to acquire AMI for $1.65 billion in cash and stock. The deal combines Lattice’s low-power FPGA platform with AMI’s firmware and infrastructure manageability software, including BIOS, BMC, and remote management solutions used across hyperscale and enterprise servers. AMI is expected to generate more than $200 million in revenue in 2026. The acquisition is expected to close in Q3 2026 and is projected to be accretive to gross margin, free cash flow, and EPS on a non-GAAP basis.

• Q1 2026 revenue: $170.9M (+42.2% YoY, +17.2% QoQ)
• Non-GAAP EPS: $0.41 (+86% YoY)
• Adjusted EBITDA margin: 39.6%
• Operating cash flow: $50.3M (29.4% margin)
• Q2 2026 outlook: $175M–$195M revenue (~50% YoY growth at midpoint)
• AMI acquisition: $1.65B total consideration ($1.0B cash + ~$650M stock)
• AMI 2026 revenue expectation: >$200M
• Transaction close: expected Q3 2026 (subject to approvals)
• Strategic focus: secure management, firmware, and system-level control for AI and cloud infrastructure

“Our acquisition of AMI advances our everywhere companion chip strategy and shared vision to deliver secure management and control solutions that help customers deploy complex systems faster and with greater confidence,” said Ford Tamer, CEO of Lattice Semiconductor.

🌐 Analysis: Lattice is moving up the stack from device-level FPGA supplier into system-level control and manageability, aligning with broader trends in AI infrastructure where firmware, orchestration, and security are becoming tightly coupled with silicon. The AMI acquisition positions Lattice more directly against platform-centric players such as Intel, NVIDIA, and AMD, all of which are expanding into full-stack hardware-software integration for AI systems.