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Microchip Technology Incorporated (MCHP) is a prominent American semiconductor company specializing in smart, connected, and secure embedded control solutions valued at a market cap of $21.2 billion. Headquartered in Chandler, Arizona, Microchip designs and manufactures a broad array of products, including microcontrollers (MCUs), analog and mixed-signal integrated circuits, memory devices, and connectivity solutions.
MCHP is slated to announce its fiscal Q4 earnings results on Monday, May 5. Analysts expect a steep decline in profitability, projecting earnings of just $0.03 per share, marking a dramatic 94% drop from the $0.50 per share reported in the same quarter last year. While the company has delivered earnings in line with or above Wall Street expectations in three of the past four quarters, it fell short in the most recent one.
Analysts forecast its fiscal 2025 EPS to come in at $1, a sharp 78.3% plunge from the $4.60 recorded in fiscal 2024.
Shares of Microchip Technology have declined 51.8% over the past 52 weeks, significantly lagging behind both the S&P 500 Index's ($SPX) 5.3% rise and the Technology Select Sector SPDR Fund’s (XLK) marginal fall over the same time frame.
Despite the grim price momentum over the past year, Microchip Technology shares surged over 27% on Apr. 4, leading gains in both the S&P 500 and Nasdaq 100. The rally followed President Trump's announcement of a 90-day pause in reciprocal tariffs, which boosted investor sentiment across the semiconductor sector.
Wall Street analysts are highly optimistic about Microchip Technology’s stock, with a "Strong Buy" rating overall. Among 21 analysts covering the stock, 15 recommend "Strong Buy," one suggests a “Moderate Buy,” four indicate “Hold,” and one suggests a “Moderate Sell.”
The average price target for MCHP is $63, which indicates a massive 56.4% potential upside from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
