Why Lattice Semiconductor Shares Surged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Lattice Semiconductor (NASDAQ: LSCC  ) have surged today by as much as 11% after the company boosted first-quarter guidance.

So what: Revenue in the first quarter is now expected to jump 6% to 8% sequentially thanks to strong demand in the communications and consumer market segments. That's much better than the 2% to 4% sequential gain that Lattice predicted nearly two months ago for first quarter sales.

Now what: Since the communications and consumer market segments have lower margins, the booming business there will put some downward pressure on profitability. Gross margin should be at the low end of guidance of roughly 54% plus or minus 2%. Operating expense guidance is unchanged and should be in the neighborhood of $35.5 million, which includes $500,000 in restructuring charges. Lattice is benefiting from capital spending from telecommunications giants.

Interested in more info on Lattice Semiconductor? Add it to your watchlist by clicking here.

With the European debt crisis and slowing growth in China many investors are worried about heady growth going forward, but fear not, because: The Future is Made in America. Domestic manufacturing is poised to once again become the investment driver of the world, and all because of one disruptive technology. You can uncover the three companies that will become the American Steel of tomorrow in The Motley Fool's new free report. Just click here to read more.