The $3 billion "CEO job-hopping": Optical module leader Coherent soared, FPGA leader Lattice plummeted
Anderson's job change caused Lattice's market value to evaporate by about $1.58 billion, while Coherent's market value increased by nearly $1.99 billion
CEO job-hopping triggers huge stock price fluctuations for former and new employers.
On Monday local time, the stock prices of two electronic manufacturers experienced significant volatility: leading FPGA company Lattice (LSCC) saw a drop of over 15%, the largest decline in eight months, while leading photonics technology supplier Coherent (COHR) surged over 22%, marking its largest single-day gain in four years.
On the news front, Lattice's CEO Jim Anderson announced his resignation and simultaneously assumed the role of CEO at Coherent. Lattice will appoint its Chief Marketing and Strategy Officer Esam Elashmawi as interim CEO while recruiting a long-term CEO candidate.
Lattice is a leading chip manufacturer, widely providing semiconductor components such as FPGAs (Field-Programmable Gate Arrays) and PLDs (Programmable Logic Devices), while Coherent is a top photonics technology supplier, with its products widely used in the field of material processing.
Market data shows that Anderson's job change caused Lattice's market value to evaporate by approximately $1.58 billion, while Coherent's market value increased by nearly $1.99 billion. Ultimately, Lattice's market value fell to $8.63 billion, below Coherent's market value of $10.69 billion.
Since Anderson took office at Lattice in September 2018, the company's stock price has soared by 691%, while Coherent's stock price has only increased by 45% during the same period.
Raymond James analyst Srini Pajjuri stated in a client report:
"Lattice's revenue has grown at a compound annual growth rate of 14% over the past 5 years, 3.4% higher than its FPGA peers."
"Given Anderson's outstanding performance and the smaller market value of the upcoming Coherent, we are somewhat surprised by his departure."
Earlier this year, analysts at Morgan Stanley also stated that Coherent is a company that can benefit from strong AI demand.
Year-to-date, Coherent's stock price has risen by 61%, while Lattice has accumulated a 9.1% decline