Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The third quarter saw strength in small cap stocks, particularly in July when the return on the Russell 2000 Index was 10.2%. In the quarter, its Investor Class fund ARTSX returned 9.02%, Advisor Class fund APDSX posted a return of 9.04%, and Institutional Class fund APHSX returned 9.06%, compared to a return of 8.41% for the Russell 2000 Growth Index. Outperformance of the fund in the quarter was driven by positive security selection within health care and consumer discretionary sectors. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.

Artisan Small Cap Fund highlighted stocks like Lattice Semiconductor Corporation (NASDAQ:LSCC) in the Q3 2024 investor letter. Lattice Semiconductor Corporation (NASDAQ:LSCC) develops and distributes semiconductor products. The one-month return of Lattice Semiconductor Corporation (NASDAQ:LSCC) was 24.47%, and its shares lost 9.37% of their value over the last 52 weeks. On December 11, 2024, Lattice Semiconductor Corporation (NASDAQ:LSCC) stock closed at $63.01 per share with a market capitalization of $8.693 billion.

Artisan Small Cap Fund stated the following regarding Lattice Semiconductor Corporation (NASDAQ:LSCC) in its Q3 2024 investor letter:

"Among our top detractors were iRhythm, e.l.f. Beauty and Lattice Semiconductor Corporation (NASDAQ:LSCC). Lattice shares struggled due to cyclical pressures, most notably within its industrial end market, and a weak environment within the telecom business. We believe some of these ongoing headwinds are set to ease, but it may take longer than previously expected. Lattice expects a return to growth at the end of 2024 or early 2025, partly fueled by a steady flow of new product launches, which continues to drive market share gains. We remain patient."

A row of robotic arms in a factory, assembling semiconductor products.

Lattice Semiconductor Corporation (NASDAQ:LSCC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Lattice Semiconductor Corporation (NASDAQ:LSCC) at the end of the third quarter which was 28 in the previous quarter. The third quarter revenue of Lattice Semiconductor Corporation (NASDAQ:LSCC) was in line with the guidance at $127.1 million. While we acknowledge the potential of Lattice Semiconductor Corporation (NASDAQ:LSCC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.