
Microchip Technology (MCHP) Stock Forecast & Price Target
Microchip Technology (MCHP) Analyst Ratings
Bulls say
Microchip Technology's positive outlook is supported by a 10% growth in bookings and a strong bookings-to-billings ratio of 1.06, indicating robust demand for its products, particularly in the microcontroller (MCU) and analog segments. The company anticipates strong performance in upcoming quarters, with management forecasting above-seasonal revenue growth and improved gross margins due to stronger Data Center-related shipments. Additionally, Microchip has demonstrated resilience through its diversified product offerings, with a notable quarterly increase of 9.7% in the microcontroller product line, positioning the company for continued market share gains, especially in the higher-margin 32-bit MCU sector.
Bears say
The financial outlook for Microchip Technology is negative due to a delayed cyclical recovery, with the company guiding for F3Q26 revenue at $1.129 billion, which reflects a -1% quarter-over-quarter decline and is below both internal estimates and market expectations. Additionally, management's anticipation of softer recovery conditions has contributed to EPS projections falling short by $0.03, further indicating potential challenges in achieving growth targets. Furthermore, the company faces gross margin pressures resulting from a deteriorating macro environment, excess inventory, and anticipated declines in key sectors such as automotive and industrial, all of which could adversely impact financial performance moving forward.
This aggregate rating is based on analysts' research of Microchip Technology and is not a guaranteed prediction by Public.com or investment advice.
Microchip Technology (MCHP) Analyst Forecast & Price Prediction
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