
Microchip Technology (MCHP) Stock Forecast & Price Target
Microchip Technology (MCHP) Analyst Ratings
Bulls say
Microchip Technology's revenue is projected to reach $1.260 billion in the upcoming quarter, reflecting a 6.2% quarter-over-quarter growth and exceeding market expectations. The company's non-GAAP gross margin achieved a robust 60.5%, surpassing both the prior quarter's figures and consensus estimates, indicating effective cost management and a favorable pricing environment. Additionally, strong demand signals, evidenced by increased bookings and a healthy backlog, position Microchip for continued growth and market share expansion, particularly in the 32-bit MCU segment.
Bears say
Microchip Technology is facing a challenging macroeconomic environment, characterized by diminished gross margins and declining sequential revenues across automotive and industrial sectors, leading to a forecast of multiple quarters of setbacks. The company's reliance on lower-end 8-bit MCUs, coupled with disappointing sales in both Analog and Mixed Signal segments, highlights potential vulnerabilities in maintaining market share against increasing competition in the 32-bit MCU segment. Additionally, rising inventory levels and underutilization at manufacturing facilities signal a risk of excess supply, which, if coupled with a shortfall in demand, could exacerbate revenue deceleration and negatively impact overall financial performance.
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
Start investing in Microchip Technology (MCHP)
Order type
Buy in
Order amount
Est. shares
0 shares