diff --git a/gcc/attribs.c b/gcc/attribs.c
index 01a9ed66485..29703e75fba 100644
--- a/gcc/attribs.c
+++ b/gcc/attribs.c
@@ -605,7 +605,8 @@ decl_attributes (tree *node, tree attributes, int flags,
     }
 
   if (TREE_CODE (*node) == FUNCTION_DECL
-      && optimization_current_node != optimization_default_node
+      && (optimization_current_node != optimization_default_node
+	  || target_option_current_node != target_option_default_node)
       && !DECL_FUNCTION_SPECIFIC_OPTIMIZATION (*node))
     {
       DECL_FUNCTION_SPECIFIC_OPTIMIZATION (*node) = optimization_current_node;
diff --git a/gcc/testsuite/g++.target/i386/pr103696.C b/gcc/testsuite/g++.target/i386/pr103696.C
new file mode 100644
index 00000000000..de7d5c68be9
--- /dev/null
+++ b/gcc/testsuite/g++.target/i386/pr103696.C
@@ -0,0 +1,25 @@
+// PR c++/103696
+// { dg-options "-O2 -std=c++14 -fdump-tree-optimized" }
+
+int global_var;
+
+void fn() {
+}
+
+#pragma GCC optimize("finite-math-only")
+#pragma GCC target("sse3")
+
+void fn2() {
+}
+
+void fn3() {
+}
+
+int solve() {
+    auto nested = []() {
+        return global_var;
+    };
+    return nested();
+}
+
+/* { dg-final { scan-tree-dump-not "lambda" "optimized" } } */