Microchip stock analysis
Microchip (1MCHP) Stock Price & Analysis
1MCHP Stock Chart & Stats
- Day’s Range
- EUR 55.34 - EUR 57.04
- 52-Week Range
- EUR 29.00 - EUR 120.00
- Previous Close
- EUR 54.64
- Volume
- N/A
- Average Volume (3M)
- 406
- Market Cap
- EUR 29.59B
- Enterprise Value
- EUR 47.92B
- Total Cash (Recent Filing)
- EUR 457.00M
- Total Debt (Recent Filing)
- EUR 5.55B
- Price to Earnings (P/E)
- 46.5
- Beta
- 1.38
- Next Earnings
- Feb 04, 2027 (Est.)
- EPS Estimate
- 0.82
- Next Dividend Ex-Date
- N/A
- Dividend Yield
- 2.70%
Bulls Say, Bears Say
Bulls Say
Broad End-market Growth
Growth is broad rather than dependent on one customer market, with industrial and data center leading and automotive, communications, aerospace, and consumer applications also expanding. This diversification supports more resilient demand and gives Microchip multiple avenues for sustained recovery.
Design-win And Backlog Momentum
Increasing design wins can create durable revenue because embedded components may remain in customer products for years. Rising backlog and a book-to-bill ratio above one provide forward demand support, while expanding PCIe opportunities add a longer-term growth pipeline.
Strong Cash Generation And Deleveraging
Strong free cash flow and improving earnings coverage give Microchip internal funding capacity for investment, debt reduction, and shareholder returns. The recent decline in net debt also improves financial flexibility, helping the company navigate cyclical demand and fund strategic initiatives.
Bears Say
Supply Constraints Limit Fulfillment
Extended lead times and constrained manufacturing capacity are preventing Microchip from fulfilling some customer orders in the current quarter. Persistent bottlenecks can defer revenue, weaken customer service, and delay the conversion of strong bookings into reported sales over coming quarters.
Margin Pressure From Costs And Utilization
Lower utilization, unsupported high-margin backlog, and higher foundry and OSAT costs could keep margins below recent levels. If Microchip absorbs supplier increases without promptly raising prices, cash conversion and earnings recovery may remain pressured even as revenue improves.
Cyclical Recovery Remains Incomplete
Profitability has recovered from the trough but remains materially below prior peak earnings power, showing that the rebound is still cycle-sensitive. A slowdown in data-center demand could further moderate growth, reduce operating leverage, and delay a full return to historical profitability.
Microchip News
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Microchip Stock Smart Score
Company Description
Microchip
Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia. The company's core offerings include a range of microcontrollers, such as general-purpose 8-bit, 16-bit, and 32-bit models, as well as 32-bit embedded microprocessors. These specialized microcontrollers are designed for numerous applications across industries like automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interfaces, security, and various wired and wireless connectivity needs. Beyond its processors, Microchip provides development tools that enable system designers to program its microcontroller and microprocessor units for specific tasks. Its product lineup also features Field-Programmable Gate Arrays (FPGAs) and a broad selection of analog, interface, mixed-signal, and timing components. This extensive category encompasses power management, linear, high-voltage, thermal management, discrete diodes and MOSFETs, radio frequency (RF), drivers, safety, security, USB, Ethernet, wireless, and other interface products. For compact device applications, the company supplies memory products such as serial EEPROM, serial and parallel flash, serial SRAM, and serial EERAM. A significant aspect of Microchip's business involves licensing its SuperFlash embedded flash and NVM technologies. These are provided to foundries, integrated device manufacturers, and design partners for use in manufacturing their own microcontrollers, gate arrays, RF, analog, and neuromorphic computing products that require integrated non-volatile memory. Moreover, Microchip delivers engineering services, along with wafer foundry, assembly, and test subcontracting manufacturing services. It also produces specialized timing systems, application-specific integrated circuits (ASICs), and aerospace products. Microchip Technology Incorporated was established in 1989 and is headquartered in Chandler, Arizona.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- Steve Sanghi
- Employees
- 17,900
- Website
- www.microchip.com
- Address
- 2355 West Chandler Boulevard, Chandler, AZ, 85224-6199, US
Microchip (1MCHP) Earnings & Revenues
1MCHP Company Deck
1MCHP Earnings Call
Earnings Call SentimentPositive
The call was predominantly positive: the company reported strong year-over-year growth, broad-based end-market expansion, strong bookings and backlog, significant design-win momentum, healthy cash flow, and declining leverage. However, near-term execution is affected by extended lead times, capacity constraints, delayed high-margin shipments, lower December gross-margin guidance, supplier cost increases, and the nonrecurrence of approximately $53 million of September revenue. Management remained optimistic about the March quarter and longer-term growth while acknowledging uncertainty around data-center demand and near-term utilization.
View all IT:1MCHP earnings summaries1MCHP Net sales Breakdown
- 49.98% Mixed-signal Microcontrollers
- 28.20% Analog
- 21.83% Other
1MCHP Stock 12 Month Forecast
Average Price Target
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 4 | 5 | 13 |
| Technical Analysis | 3 | 5 | 2 |
| Moving Averages | 1 | 0 | 11 |










