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Microchip Technology Incorporated (MCHP), based in Chandler, Arizona, develops, manufactures, and sells smart, connected, and secure embedded control solutions. With a market cap of $49.7 billion, the company's operations span various countries in the Americas, Europe, and Asia. It is expected to announce its Q2 earnings on Thursday, Nov. 5, after the market closes.
Ahead of the events, analysts expect Microchip Technology to report a profit of $0.37 per share, down 76% from $1.54 per share reported in the year-ago quarter. The company surpassed or met the consensus estimates in three of the past four quarters, missing it on another occasion.
In fiscal 2025, analysts expect Microchip Technology to report an EPS of $1.73, down 62.4% from $4.60 in fiscal 2023. However, in its fiscal 2026, EPS is expected to grow 75.6% year over year to $3.02.
MCHP stock is down marginally over the past 52 weeks, substantially underperforming the S&P 500 Index’s ($SPX) 36.8% gains and the Technology Select Sector SPDR Fund’s (XLK) 38.6% returns over the same time frame.
Microchip Technology shares declined over 4% on Oct. 15, following a Bloomberg report that the Biden administration is considering country-specific restrictions on advanced AI chip sales. This news triggered a broad selloff across the semiconductor sector.
The consensus opinion on Microchip Technology stock is very bullish, with a “Strong Buy” rating overall. Out of the 22 analysts covering the stock,15 recommend a “Strong Buy,” one advises a “Moderate Buy,” and six suggest a “Hold” rating. This configuration is slightly less bullish than two months before when 16 analysts suggested a "Strong Buy."
The average target price for Microchip Technology is $93.77, indicating a potential upside of 23.6% from the current price 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.
