Secure control and verification are becoming more mandatory as compute scales and fleets get regulated. If execution holds and software attach emerges, premium economics can persist despite valuation risk.

Lattice can compound by making “secure, low-power programmability” a larger and more mandatory line-item in AI infrastructure and regulated edge fleets, while adding higher-margin software/licensing attach that preserves premium economics even if valuation mean-reverts.

As AI expands, systems need more secure control, update, and verification paths; Lattice’s low-power control-plane silicon and security focus map directly to that demand, though it doesn’t own frontier compute.

The setup is a “more sockets per system” story: AI servers, networking gear, robots, and safety/security-regulated devices increasingly need always-on control, timing, and cryptographic verification. Lattice’s advantage is not peak compute; it’s low-power programmability that OEMs can design in once and ship for years, with rising willingness to pay for secure lifecycle management. The multiple likely compresses from today’s peak expectations, but can remain premium if Lattice keeps converting design wins and layers recurring software/security monetization without breaking trust.

The biggest risks are (1) premium-valuation fragility, (2) socket defensibility as OEMs integrate control/security into SoCs, and (3) channel/geographic concentration interacting with export controls and cycle turns. The self-help path (more recurring software/security monetization) can reduce cyclicality but introduces new trust, uptime, and liability risk.

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