Will Stock Prices of Microchip Technology in the Financial Sector Protest or Plummet, According to Predictions by Wall Street Analysts?
Microchip Technology: A Mixed Bag of Wall Street Opinions
With a whopping market cap of $25.7 billion, Microchip Technology Incorporated (MCHP) is a leading player in the development, manufacturing, and distribution of smart, connected, and secure embedded control solutions globally. Based in Chandler, Arizona, this semiconductor manufacturer offers an extensive range of 8-bit, 16-bit, and 32-bit microcontrollers, microprocessors, and specialized microcontrollers.
Despite being a key player in the industry, MCHP has struggled to keep pace with the broader market over the past year. The stock has plummeted by 47.7% over the past 52 weeks and 16.7% year-to-date (YTD). In comparison, the S&P 500 Index has returned 10.2% over the past year but dropped 3.9% in 2025.
The market for semiconductors, valued at $158 billion, is showing a remarkable 200% growth, and MCHP proudly possesses 10 patents. This impressive pre-IPO stock seems to have it all.
Shifting focus, MCHP has underperformed the SPDR S&P Semiconductor ETF's decline of 10.7% over the past 52 weeks but managed to outperform its 18.7% dip this year. The stock dipped marginally after the release of its Q3 earnings on Feb. 6. Although the company reported revenue of around $1 billion, it missed the Street's estimates by 11.8%. Its EPS came in at $0.13, disappointing analysts by a significant 38.1%.
Analysts predict MCHP's EPS will slump 78.3% year over year to $1 for the current fiscal year ending in March 2025. Despite this, the company has surpassed or met analysts' consensus estimates in three of the past four quarters.
The analyst community is divided on Microchip's performance. While 21 analysts have a consensus rating of "Strong Buy," William Stein from Truist Financial Corporation lowered the price target on MCHP to $43 from $56 while maintaining a "Hold" rating. The mean price target of $58.76 indicates a premium of 23% from the current market price, with a robust 57% upside potential suggested by the Street-high target of $75.
While ratings show a generally positive outlook, price targets display cautiousness amidst earnings challenges. The average target range of $58-$67 suggests moderate upside from current levels (~20-30%), with outliers at $43 (bearish) and $90 (bullish). Investors should be aware of the mixed revisions and sector-specific risks in the MCU and analog chip markets.
- The stock of Microchip Technology Incorporated (MCHP), despite holding 10 patents, has underperformed over the past year, with a plummet of 47.7% and 16.7% year-to-date, while the S&P 500 Index returns 10.2% over the same period.
- In comparison to its year-to-date performance, Microchip Technology (MCHP) managed to outperform its 18.7% dip this year, although it did experience a minor dip after the release of its Q3 earnings.
- The analyst community is divided on Microchip's performance, with 21 analysts giving a "Strong Buy" consensus rating, but William Stein from Truist Financial Corporation maintaining a "Hold" rating, with a lowered price target of $43 from $56.
