Microchip Technology uvedla rodinu SY757xx, 1,2 V hodinových bufferů pro FPGA, SoC a CPU, které zjednodušují návrh desek a zlepšují integritu signálu. Tři produkty jsou v sériové výrobě, osm dalších je ve fázi vzorkování.
CHANDLER, Ariz., Sept. 08, 2026 (GLOBE NEWSWIRE) -- The demand for low-voltage clock drivers continues to grow with the rapid adoption of advanced FinFET process nodes used in high-performance FPGAs, SoCs, AI accelerators and next-generation CPUs. Printed circuit board designers face increasing challenges due to the limited availability of standard 1.2V LVCMOS clock buffers and level-translating buffers capable of converting higher-voltage clock signals to the lower-voltage levels required by these advanced devices. Conventional approaches that rely on discrete components and voltage-divider techniques can compromise signal integrity and clock duty-cycle accuracy while increasing board complexity and component count.
Microchip Technology (Nasdaq: MCHP) has introduced the SY757xx family, a comprehensive portfolio of 1.2V-output LVCMOS clock buffers, designed to address these challenges. The new devices simplify system design by eliminating the need for traditional discrete-component implementations while delivering ultra-low additive jitter performance. To provide flexibility for supporting legacy board power supplies and different clock-source voltage levels, the devices support a broad range of supply voltage (VDD) and a wide operating frequency range. The SY757xx family enables ultra-low additive jitter clock distribution while maintaining the high clock resolution and signal integrity required for today’s high-speed FPGA, SoC and CPU platforms.
“Our SY757xx family of clock buffers helps customers overcome the growing clock distribution challenges associated with next-generation high-performance FPGA, SoC and CPU platforms,” said Maamoun Abou Seido, appointed vice president of Microchip’s timing and communications business unit. “By combining ultra-low additive jitter performance with broad VDD and wide frequency support in a single-chip solution, the SY757xx devices simplify board design, reduce component count and help customers maintain the signal integrity and timing accuracy required in today’s high-performance computing applications.”
Microchip’s SY757xx family strengthens the clock buffer’s role as a critically important SoC and FPGA interface for clock distribution and clock fanout functionality in application platforms where signal integrity is paramount. These platforms demand high-speed parallel processing, hardware reconfigurability, low latency and efficient real-time computing. These capabilities are required for applications ranging from embedded vision and video processing to AI/ML acceleration, industrial control and IoT, networking and communications, and signal processing and embedded systems.
Launching three products in production and eight that are sampling in limited volumes, the family spans a wide array of configurations in three space-saving packaging options. The devices protect against clock distortion across a 0 Hz to 250 MHz frequency spectrum while also offering a broad range of power supply input and output options across the 1.2V to 3.3V voltage-translation input range. This includes a single-chip option that reliably interconnects 3.3V components to FPGAs and SoCs with a 1.2V clock signal requirement. Additive jitter is as low as 26 femtoseconds (fs).
Compared to traditional discrete component solutions for these FPGA and SoC applications, the Microchip buffers simplify design and reduce bill-of-materials costs while helping to optimize AC coupling and biasing and maintain signal integrity. Voltage dividers using discrete components may not provide adequate design margin and can degrade signal integrity by causing duty-cycle distortion.
Microchip clock buffers complement the company’s comprehensive range of flash-based FPGAs and SoC FPGAs spanning ultra-low density to mid-range density devices. These and other Microchip products that range from microcontrollers and analog components to power management, timing, connectivity and memory devices are pre-engineered and validated to enable a simplified, lower-risk and more holistic approach to system design.
Pricing and Availability
The low-power LVCMOS clock buffer family’s SY75707TWL-TR, SY75712TWL-TR and SY75714TWL-TR devices are in volume production. The SY75707TWL-TR supports differential input to two LVCMOS output and is housed in an 8-pin Very-thin Dual Flat No-lead (VDFN) package. The SY75712TWL-TR and SY75714TWL-TR devices enable either 2 or 4 LVCMOS outputs operating at 1.2V to 1.8V rail, respectively, and are housed in 8-pin Thin Dual Flat No-lead (TDFN) packages. They are priced from $0.50 to $0.83 per unit depending on configuration, in volumes of 10,000.
The other eight SY757xx family members bridge to 1.2V-to-1.8V LVCMOS outputs from a choice of single-ended 1.2V to 3.3V LVCMOS inputs, single-ended 1.2V to 1.8V LVCMOS inputs, or differential 1.8V to 3.3V inputs. There are also options for an output-enabled (OE) fanout buffer. All the sampling devices are housed in 8-pin VDFN packages.
For additional information and to purchase, contact a Microchip sales representative, authorized worldwide distributor or visit Microchip’s Purchasing and Client Services website, www.microchipdirect.com. For information about SY757xx products that are available in sample volumes, email [email protected].
Resources
High-res images available through Flickr or editorial contact (feel free to publish):
· Application image: www.flickr.com/photos/microchiptechnology/55473197596/sizes/o/
About Microchip Technology:
Microchip Technology Inc. is committed to making innovative design easier through total system solutions that address critical challenges at the intersection of emerging technologies and durable end markets. Its easy-to-use development tools and comprehensive product portfolio support customers throughout the design process, from concept to completion. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support and delivers solutions across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. For more information, visit the Microchip website at www.microchip.com.
Note: The Microchip name and logo and the Microchip logo are registered trademarks of Microchip Technology Incorporated in the U.S.A. and other countries. All other trademarks mentioned herein are the property of their respective companies.
Lam Research těží z poptávky po AI: ve 4. fiskálním čtvrtletí tržby vzrostly o 30 % na 6,72 miliardy USD a management čeká v roce 2026 růst výnosů z packagingu o více než 70 %.
Key Takeaways Lam Research appears the better buy, with stronger AI exposure, earnings momentum and near-term visibility.LRCX sees AI driving NAND, DRAM, HBM, logic and packaging, with 2026 packaging revenue growth above 70%.Substrate shortages and foundry constraints are lengthening lead times and slowing MCHP's order fulfillment. Lam Research Corporation (LRCX - Free Report) and Microchip Technology Incorporated (MCHP - Free Report) both provide exposure to the semiconductor industry, but from very different angles. LRCX sells wafer-fabrication equipment used to manufacture increasingly complex chips, while MCHP supplies microcontrollers, analog and other embedded semiconductor products across diverse end markets.
Both companies are benefiting from improving demand and AI-related opportunities. However, differences in growth visibility, earnings momentum, balance sheet strength, valuation and market risks make this an interesting faceoff for investors looking for the better chip stock today.
Let’s find out which of the two is a better investment bet right now.
The Case for Lam Research StockRising semiconductor equipment demand is translating into strong financial growth for LRCX. In the fourth quarter of fiscal 2026, its revenues rose 30% year over year and 15% sequentially to $6.72 billion. Non-GAAP earnings per share (EPS) jumped nearly 37% year over year and 24% sequentially to $1.82. Non-GAAP gross margin expanded 210 basis points sequentially to 52%, while non-GAAP operating margin improved 340 bps to 38.4%. Pricing actions, operational and scale efficiencies, favorable product mix and efficient cost management drove margin improvement.
AI remains the biggest long-term catalyst. Lam Research now expects calendar year 2026 wafer-fabrication equipment spending in the low-$150 billion range and sees a strong setup for further growth in 2027. AI is driving investment in NAND, DRAM, high-bandwidth memory (HBM), gate-all-around transistors and advanced packaging. LRCX is well positioned because these technologies require more complex etch and deposition processes.
Memory is becoming an especially important growth engine for Lam Research. The company’s NAND revenues more than doubled sequentially in the fourth quarter as customers upgraded production toward 256-layer and higher devices. LRCX expects its served market per NAND wafer to double as customers move from 128-layer technology toward 500-plus-layer architectures.
Its Akara etch platform is also gaining adoption in advanced logic and DRAM. Advanced packaging provides another opportunity as AI chips increasingly rely on chiplets, HBM and larger package designs. The company expects advanced-packaging revenues to grow more than 70% year over year in 2026.
Lam Research's customer support business adds stability to the growth story. Customer support-related revenues reached nearly $2.47 billion in the fourth quarter, rising 43% year over year, supported by upgrades, services and Reliant products. The company is also expanding equipment-intelligence and automation offerings across its installed base.
Lam Research has a strong balance sheet. At the end of fiscal 2026, it had cash, cash equivalents and restricted cash balances of $5.58 billion and long-term debt of $3.73 billion. A strong balance sheet and robust cash flow generation capability have enabled it to enhance shareholders’ wealth through share repurchases and dividend payments. In fiscal 2026, the company generated operating cash flow of $5.86 billion and returned $5.12 billion to shareholders.
The Case for Microchip StockMicrochip is also delivering robust financial performance. In the first quarter of fiscal 2027, revenues soared 38% year over year to $1.49 billion, while non-GAAP EPS jumped more than 181% to 76 cents. Non-GAAP gross margin improved to 63.8% from 54.3% in the year-ago quarter, while non-GAAP operating margin expanded to 35.1% from 20.7%. Higher factory utilization, lower underutilization charges and improving demand helped profitability rebound quickly as the inventory correction eased.
The data center end market is emerging as Microchip’s strongest growth opportunity. The company forecasts total data-center revenues will reach about $1 billion in calendar year 2026, up roughly 69% from $591 million in 2025. In the first quarter of fiscal 2027, data center sales surged 97.8% year over year. MCHP expects momentum to extend further in 2027 as new design wins on PCIe Gen6 switches and retimers, storage and NVMe controllers, power-management products, microcontrollers, security chips, timing products and memory products would proceed to production next year.
Microchip also benefits from broad exposure to industrial, aerospace and defense, automotive and communications markets. In the first quarter, these markets grew 24.3%, 45.6%, 29.3% and 53.3%, respectively, from the prior-year period.
Demand indicators have improved. In the first quarter, Microchip registered its strongest bookings in about four years, with book-to-bill finishing well above 1. Distribution sell-through grew 17% sequentially. The company expects second-quarter revenues of $1.589-$1.618 billion, representing 7%-9% sequential growth.
Nonetheless, the company is facing substrate shortages, foundry constraints and pressure on outsourced assembly and test capacity, which are leading to longer lead times and limiting its capability to fulfill orders quickly. Microchip’s highly leveraged balance sheet remains a major concern. Cash and short-term investments were $272.3 million as of June 30, 2026 compared with long-term debt of $5.36 billion. Though the company’s $170 million net debt reduction during the first quarter helped it reduce the net debt-to-adjusted trailing EBITDA ratio, it remained well elevated. Net debt to adjusted trailing EBITDA fell to 2.85X as of June 30 from 3.54X as of March 31.
Though the company has been generating decent cash flows, a highly leveraged balance sheet may limit its capital allocation flexibility. In the trailing 12 months, Microchip has generated operating cash flow of approximately $1.2 billion and returned $985 million to shareholders through dividend payments. MCHP’s trailing 12-month cash flow and shareholders’ returns are significantly lower than LRCX’s.
LRCX vs. MCHP: Growth OutlookThe Zacks Consensus Estimate for Lam Research’s fiscal 2027 and 2028 revenues indicates year-over-year growth of 48.4% and 17.3%, respectively. The consensus mark for earnings calls for increases of 60.4% and 21.7%, respectively.
Microchip’s revenues are projected to increase 35.9% in fiscal 2027 and 16.9% in fiscal 2028. The Zacks Consensus Estimate for earnings calls for a rise of 121.3% for fiscal 2027 and 22.9% for fiscal 2028.
Looking at the two companies’ estimates, Lam Research outperforms on sales growth expectations, while Microchip has stronger earnings growth projections. Nonetheless, earnings estimate revision trends for the last 60 days indicate that analysts are turning more bullish toward LRCX’s long-term bottom-line growth potential.
LRCX vs. MCHP: Valuation and Share Price PerformanceMicrochip wins the valuation comparison. MCHP trades at a forward P/E multiple of 18.50, considerably below Lam Research's 32.66.
LRCX's higher multiple comes alongside much stronger stock momentum. LRCX shares have surged 83.9% year-to-date compared with MCHP's 15.6% gain. Lam Research's premium valuation reflects its greater exposure to AI-driven wafer-fab spending, stronger near-term revenue momentum and leadership in critical manufacturing technologies.
Final Verdict: Lam Research Is the Better BuyMicrochip offers a cheaper valuation, improving margins and promising data center growth. Substrate shortages and foundry constraints are lengthening lead times and slowing MCHP’s order fulfillment, which could hurt the company’s near-term growth prospects.
On the contrary, Lam Research has the stronger combination of earnings momentum, AI exposure, technology leadership, recurring service revenues and near-term visibility. Its valuation is richer, but rapid growth in NAND, advanced logic, DRAM and packaging offers stronger support for continued earnings expansion. For investors choosing between LRCX and MCHP today, Lam Research appears to be the better investment bet.
Currently, Lam Research carries a Zacks Rank #2 (Buy), making the stock a must-pick compared with Microchip, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microchip očekává, že jeho datacentrové portfolio v kalendářním roce 2026 vzroste o 69,3 % na zhruba 1 miliardu USD. Tržby z letectví a obrany v 1. čtvrtletí fiskálního roku 2027 meziročně stouply o 45,6 %.
Key Takeaways Microchip expands in edge AI, data centers, aerospace and networking with a broader portfolio.MCHP expects its data-center portfolio to grow 69.3% to roughly $1 billion in 2026.Microchip's aerospace and defense revenues rose 45.6% year over year in Q1 fiscal 2027. Microchip Technology (MCHP - Free Report) is benefiting from an expanding product portfolio that is broadening its exposure to high-growth areas such as edge AI, data centers, aerospace and defense, networking and connectivity. The company’s strategy centers on combining microcontrollers, analog, field-programmable gate arrays (FPGA), timing, power-management, security and connectivity products into total system solutions (TSS), allowing it to provide a larger portion of the silicon content required in customer applications. Microchip believes this synergistic portfolio positions it to capitalize on disruptive trends, including AI/ML, data centers, edge computing, IoT and networking.
Microchip launched Revision 2.0 of its PolarFire FPGA Ethernet Sensor Bridge for NVIDIA (NVDA - Free Report) Holoscan-based edge AI systems. The platform is 60% smaller than the previous generation, supports twice as many cameras and uses scalable 10Gb Ethernet connectivity, helping reduce power consumption, system costs and integration complexity. It targets AI-driven medical equipment, industrial systems and humanoid robotics running on NVIDIA Jetson and IGX platforms.
The solution integrates Microchip timing and power-management devices, creating an opportunity for MCHP to sell multiple components into the same system rather than only an FPGA. This integrated approach can shorten customers' development cycles and reduce third-party integration risk, strengthening Microchip's TSS strategy. It also enhances MCHP’s competitive position against Advanced Micro Devices (AMD - Free Report) and Lattice Semiconductor (LSCC - Free Report) , which offer programmable solutions for embedded, vision and edge-computing applications.
The recently introduced Space CSAC-SA65 chip-scale atomic clock expands Microchip's timing portfolio for the growing New Space market. Its radiation tolerance of at least 30 kRad, power consumption of less than 120 mW and compact design make it suitable for LEO satellites, satellite-to-cellular communications, Earth imaging, assured positioning and navigation applications. The product should help MCHP deepen its aerospace and defense exposure, which is already showing strong momentum. Aerospace and defense revenues increased 45.6% year over year in the first quarter of fiscal 2027, while Microchip expects the ongoing defense buildup to be a multiyear opportunity.
The expanding portfolio is strengthening Microchip's data-center opportunity. MCHP’s data-center offerings span Peripheral Component Interconnect Express (PCIe) switches and retimers, storage and memory controllers, power management, microcontroller units (MCUs), security, timing, networking and embedded control. The company expects its overall data-center portfolio to grow 69.3% year over year to roughly $1 billion in calendar 2026. Microchip similarly expects data-center revenues to rise from approximately $591 million in 2025 to about $1 billion in 2026, with growth expected as new PCIe Gen6 switches, retimers, storage controllers, power management, timing, security and memory design wins move into production.
MCHP Faces Tough CompetitionLattice directly competes with Microchip in low-power FPGAs for industrial automation, medical, robotics and physical AI applications, while AMD challenges MCHP through its broader embedded AI and robotics platforms.
Lattice is strengthening its position in edge AI through FPGAs focused on low power, small form factor, low latency and secure processing. Its Industrial and Embedded revenues increased 36% year over year in the second quarter, supported by design wins across industrial automation, medical, robotics and physical AI applications. LSCC is also gaining traction in humanoid robotics and autonomous systems, increasing competitive pressure on MCHP’s PolarFire platform.
AMD is expanding aggressively in embedded AI. Its Embedded revenues rose 19% year over year to $977 million, while the company introduced Ryzen AI Embedded processors and the Kria AI robotics platform. AMD is tracking toward more than $18 billion of new embedded design wins, strengthening its ability to compete for next-generation edge AI deployments.
MCHP’s Share Price Performance, Valuation & EstimatesShares of Microchip have appreciated 18.4% year to date, outperforming the broader Zacks Computer and Technology sector’s 17.9% growth.
MCHP Stock’s YTD Price Performance
Image Source: Zacks Investment Research
MCHP stock is trading at a discount, with a forward 12-month price-to-earnings ratio of 18.99X compared with the broader sector’s 21.25X. Microchip has a Value Score of D.
MCHP’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Microchip’s earnings is currently pegged at 90 cents per share, an increase of 12 cents over the past 30 days, suggesting approximately 157.14% growth.
Microchip currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microchip Technology oznámila, že výnosy z datových center meziročně vzrostly o 97,8 % a nyní očekává, že tento segment dosáhne v kalendářním roce 2026 zhruba 1 miliardy USD.
Microchip Technology (MCHP +13.89%) built its business on microcontrollers (the small, inexpensive chips that run factory equipment and cars). So it may come as a surprise that the company's fastest-growing end market right now is the data center.
On the company's Aug. 6 earnings call, management said data center revenue grew 97.8% year over year in the fiscal first quarter, after growing 77% in the quarter before. And the company now expects its total data center portfolio to reach about $1 billion in calendar 2026, up 69.3% from last year.
Investors noticed. Shares of the microcontroller specialist jumped about 14% on Friday to about $85, capping a week in which it reported a quarter that was strong well beyond the data center.
Image source: Getty Images.
A sharp snapback Microchip is climbing out of one of the deepest downturns in its history, and the fiscal first quarter of 2027 (the period ended June 30, 2026) showed the recovery gaining speed. Net sales rose 38% year over year to $1.485 billion, up 13.2% sequentially and above the high end of management's guidance.
The profit recovery is even sharper, because so many of Microchip's costs are fixed. Non-GAAP (adjusted) gross margin came in at 63.8%, up from 61.6% the quarter before. Adjusted earnings per share were $0.76, up 181.5% from $0.27 a year earlier.
And on a GAAP basis, the company swung to net income of $202 million from a loss of $46.4 million in the year-ago period.
The signals behind the numbers point in the same direction. Inventory days fell from 185 to 175 during the quarter, and bookings ran ahead of shipments. The company also cut its net debt by about $170 million and paid out $246.9 million in dividends.
Management expects the momentum to continue into fiscal Q2. "We expect net sales for the September quarter to be up sequentially between 7% and 9%, which at the midpoint would represent year-over-year growth of approximately 40.6%," CEO Steve Sanghi said in the earnings release.
Data center is becoming a second business The recovery explains the quarter. The data center explains why this could be more than a cyclical rebound.
Microchip's $1 billion calendar-2026 forecast splits into two roughly equal halves. About $500 million should come from its Data Center Solutions unit, which makes products exclusively for data centers: PCIe switches and retimers, storage controllers, and memory controllers. That unit generated $302.7 million in calendar 2025, and management expects about 65% growth from it this year.
The other half comes from Microchip's catalog products (the power-management and timing chips, security products, and microcontrollers it already sells everywhere) being sold into data centers as well. All told, the company says its broader data center and compute end market already represents about 18% of total revenue.
What's more, the design-win pipeline suggests the growth has legs. Microchip said its PCIe Gen 6 connectivity design wins doubled sequentially, from six programs at the end of the prior quarter to 12 exiting the fiscal first quarter. Those wins should turn into revenue as customers' systems ramp over the next couple of years.
Sure, $1 billion would still be a minority of what should be roughly $6 billion in annual sales. But that piece of the business is growing about 69% a year, attached to the artificial intelligence (AI) data center build-out. It could change the company's growth profile -- especially when Microchip's core industrial and automotive markets move with the economy rather than ahead of it.
Today's Change
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Two very different multiples The stock's valuation captures the transition. Measured against the past year's GAAP earnings, still depressed by the downturn, the stock costs well over 100 times earnings. Measured against what's expected over the next 12 months, it costs about 21 times. The gap reflects how quickly profits are rebuilding as revenue returns and factories refill.
That 21 times forward earnings is the price of believing the recovery continues on schedule. The September-quarter guidance suggests it does, and the dividend ($1.82 per share annualized, a 2.15% yield) gets paid while investors wait.
So the quarter made two separate cases. The cyclical case is sales up 38% with margins expanding. The structural case is a data center business growing fast enough to double in well under two years, inside a company the market still thinks of as an industrial chip supplier. The first case is what Friday's 14% jump paid for. The second is the one I'll be watching from here.
Microchip Technology ve fiskálním 1. čtvrtletí zvýšila tržby o 38 % na 1,485 mld. USD a zisk na akcii na 76 centů, nad odhady. Na další čtvrtletí čeká zisk na akcii 91–95 centů a tržby 1,589–1,618 mld. USD.
Key Takeaways Microchip fiscal Q1 sales rose 38% to $1.485B as demand improved and inventory days fell to 175.Data center revenues jumped 97.8%, while PCIe Gen6 connectivity design wins doubled to 12 programs.Microchip sees fiscal Q2 sales of $1.589B-$1.618B and non-GAAP EPS of 91-95 cents. Microchip Technology (MCHP - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 76 cents per share, up 181.5% year over year and beating the Zacks Consensus Estimate by 8.6%.
Net sales of $1.485 billion rose 38% and beat the $1.448 billion consensus mark by 2.5%.
Improving demand, continued inventory normalization and stronger factory utilization supported the quarter. Inventory days declined to 175 from 185 at March-end, while bookings remained strong and the book-to-bill ratio stayed well above 1.
MCHP Demand Recovery Gains MomentumSales increased 13.2% sequentially and exceeded the high end of management’s prior guidance. Distribution sell-through increased meaningfully, while customer activity improved across several key end markets.
Microchip credited higher factory utilization, lower underutilization charges and disciplined expense management for improving operational leverage. The company also said stronger customer engagement and healthy booking activity reinforced confidence in the ongoing business recovery.
Mixed-signal microcontrollers remained Microchip’s largest product line, generating $739.1 million in sales. Analog contributed $410.9 million, while other products generated $334.7 million.
Geographically, Asia led with $769.5 million in revenues, followed by the Americas at $430.8 million and Europe at $284.4 million. Distribution accounted for 52% of first-quarter sales, while the direct channel represented 48%, highlighting a relatively balanced channel mix.
Microchip Data Center Momentum BuildsData center represented 17.1% of the June-quarter revenue mix and posted 97.8% year-over-year growth, the strongest growth rate among Microchip’s disclosed end markets.
Communications grew 53.3%, while aerospace and defense increased 45.6%.
Microchip also doubled its PCIe Gen6 connectivity design wins sequentially, exiting the quarter with 12 programs versus six at the end of March. The company expects its total data center portfolio to grow 69.3% year over year to $1 billion in calendar 2026, supported by products spanning connectivity, storage, power, timing and security.
MCHP Margin Expansion AcceleratesNon-GAAP gross margin reached 63.8%, expanding 949 basis points (bps) year over year.
Non-GAAP operating expenses represented 28.7% of sales compared with 33.7% in the year-ago period.
Non-GAAP operating income was $521.1 million, up from $222.3 million a year earlier, underscoring the operating leverage generated by the revenue rebound. Non-GAAP operating margin climbed 1,443 bps to 35.1%, reflecting stronger absorption of manufacturing costs as utilization improved.
MCHP Cash Flow and Leverage ImproveAs of June 30, 2026, Microchip had cash and short-term investments of $272.3 million.
Cash flow from operations totaled $511.5 million compared with $275.6 million in the year-ago quarter. Free cash flow increased to $497.6 million from $257.7 million, representing 33.5% of net sales.
Microchip reduced net debt by approximately $170 million during the quarter. Net debt to adjusted trailing 12-month EBITDA improved to 2.85x from 3.54x in the prior quarter. The company also returned $246.9 million to common stockholders through dividends.
Microchip Guides Strong September QuarterFor the second quarter of fiscal 2027, Microchip expects net sales between $1.589 billion and $1.618 billion, which represents sequential growth of 7-9%, with the midpoint implying approximately 40.6% year-over-year growth.
The company expects non-GAAP gross margin of 66-67%, operating margin of 38.5-39.5% and operating expenses at 27.5% of sales.
Non-GAAP earnings are projected at 91-95 cents per share.
Capital expenditures are expected at $20-$25 million for the September quarter and approximately $100 million for fiscal 2027.
Zacks Rank & Upcoming Earnings to ConsiderMicrochip currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are NVIDIA (NVDA - Free Report) , Inuvo (INUV - Free Report) and Kimball Electronics (KE - Free Report) . While Inuvo and Kimball Electronics sport a Zacks Rank #1 (Strong Buy) each at present, NVIDIA has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA, Inuvo and Kimball Electronics are set to report their quarterly results on Aug. 26, 11 and 12, respectively. Year to date, shares of Kimball Electronics and Inuvo have dropped 5.1% and 58.9%, respectively, while NVIDIA has jumped 17.4%.
Microchip Technology schválila čtvrtletní hotovostní dividendu 45,5 centu na akcii. Vyplacena bude 9. září 2026 akcionářům, kteří budou držiteli akcií k 24. srpnu 2026.
August 06, 2026 16:15 ET | Source: Microchip Technology Inc.
CHANDLER, Ariz., Aug. 06, 2026 (GLOBE NEWSWIRE) -- (NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today announced that its Board of Directors declared a quarterly cash dividend on its common stock of 45.5 cents per share. The dividend is payable on September 9, 2026, to stockholders of record on August 24, 2026. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003.
About Microchip:
Microchip Technology Inc. is a broadline supplier of semiconductors committed to making innovative design easier through total system solutions that address critical challenges at the intersection of emerging technologies and durable end markets. Its easy-to-use development tools and comprehensive product portfolio support customers throughout the design process, from concept to completion. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support and delivers solutions across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. For more information, visit the Microchip website at www.microchip.com.
INVESTOR RELATIONS CONTACT:
Sajid Daudi -- Head of investor Relations..... (480) 792-7385
The Microchip logo and name are registered trademarks of Microchip Technology Incorporated.
Microchip Technology čeká ve 2. čtvrtletí tržby 1,59 až 1,62 miliardy USD a upravený zisk na akcii 0,91 až 0,95 USD, obojí nad odhady. Tahá ji silná poptávka po čipech pro AI datová centra, průmysl, automobilový i letecký sektor.
A Microchip logo appears in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
Aug 6 (Reuters) - Microchip Technology (MCHP.O), opens new tab forecast second-quarter revenue and profit above Wall Street estimates on Thursday, on strengthening demand for its chips used in AI data centers as well as the industrial, automotive and aerospace sectors.
The company has benefited from a cyclical recovery in key end-markets, including industrial and automotive, as well as surging demand from AI-related data centers, with robust aerospace- and defense-related spending fueled by geopolitical tensions.
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Here are some details:
For the second quarter, Microchip forecast revenue of $1.59 billion to $1.62 billion, above analysts' average estimate of $1.55 billion, according to data compiled by LSEG.
Its adjusted earnings per share forecast of $0.91 to $0.95 was also above analysts' average estimate of $0.79.
The company reported first-quarter revenue of $1.49 billion, topping analysts' estimate of $1.46 billion, while its adjusted profit of $0.76 per share also beat estimates of $0.69.
However, the Chandler, Arizona-based company's shares were down 4% after the bell.
Peer Onsemi (ON.O), opens new tab on Monday forecast third-quarter revenue above Wall Street expectations, betting on surging demand for power management chips used in AI data centers.
Reporting by Nithyashree R B in Bengaluru; Editing by Savio D'Souza
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Microchip čeká za 1. fiskální čtvrtletí výnosy 1,442–1,469 mld. USD a non-GAAP EPS 67–71 centů. Firma uvedla, že dubnové objednávky byly nejvyšší za téměř čtyři roky.
Key Takeaways Microchip expects Q1 revenues of $1.442B-$1.469B and non-GAAP EPS of 67-71 cents.April bookings hit a nearly four-year high as distributor inventories stayed near historical lows.Higher utilization, lower inventory charges and cost controls are expected to lift quarterly margins. Microchip (MCHP - Free Report) is set to report its first-quarter fiscal 2027 results on Aug. 6.
For the to-be-reported quarter, MCHP expects revenues between $1.442 billion and $1.469 billion. The Zacks Consensus Estimate for revenues is pegged at $1.46 billion, suggesting 35.39% growth from the figure reported in the year-ago quarter.
Microchip expects non-GAAP earnings in the 67-71 cents per share range. The consensus mark for earnings is pegged at 70 cents per share, up by a penny over the past 30 days. The company reported earnings of 27 cents per share in the year-ago quarter.
Consensus Estimate Trend
Image Source: Zacks Investment Research
MCHP’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 8.72%.
Let us see how things have shaped up for the upcoming announcement.
Key Factors to Note Ahead of MCHP’s Q1 ResultsMicrochip’s fiscal first-quarter results are expected to have benefited from improving demand across its major end markets, including industrial, automotive, communications, aerospace & defense and data center. The company indicated that customer inventory normalization was largely complete, with bookings strengthening across geographies and end markets. Higher distributor replenishment and increasing direct customer purchases are likely to have supported sequential revenue growth.
The to-be-reported quarter’s results are expected to have been supported by robust bookings momentum and channel replenishment. MCHP highlighted that April bookings reached their highest monthly level in nearly four years, while distributor inventories remained near historical lows at roughly 26 days. Strong sell-through trends and distributors rebuilding inventory to support higher demand are expected to have contributed to top-line growth during the quarter.
Strong demand for AI and data center infrastructure is expected to have remained a key growth driver. Microchip continues to benefit from increasing adoption of storage controllers, CXL memory controllers, PCIe switches and connectivity products. Growing design activity, expanding customer engagement and momentum across high-speed connectivity solutions likely supported revenues during the quarter.
Higher factory utilization, lower inventory-related charges and disciplined cost management are expected to have driven margin expansion in the quarter. Management guided to improved gross margin of roughly 62.8% and operating margin of about 33.8% for the first quarter of fiscal 2027, reflecting operating leverage as revenue growth accelerated and inventory correction progressed.
MCHP Shares Underperform Sector & PeersMicrochip shares have inched up 18% year to date (YTD), underperforming the Zacks Computer and Technology sector’s appreciation of 11.7%. The company has lagged peers, including Texas Instruments (TXN - Free Report) , onsemi (ON - Free Report) and Analog Devices (ADI - Free Report) , over the same time frame, shares of which have returned 55.4%, 48.5% and 33.4%, respectively.
MCHP Stock’s Price Performance
Image Source: Zacks Investment Research
Microchip shares are trading at a premium, as suggested by a Value Score of D. In terms of the forward 12-month price-to-earnings (P/E), Microchip is trading at 21.87X, higher than the sector’s 20.74X and onsemi’s 21.16X. However, MCHP shares are trading at a lower multiple compared with Texas Instruments’ 29.17X and Analog Devices’ 25.68X.
MCHP Stock’s Valuation
Image Source: Zacks Investment Research
Microchip Rides on Expanding AI & Data Center PortfolioMicrochip’s long-term growth is expected to be driven by its expanding AI and data center business. The company expects its dedicated Data Center Solutions business to grow sharply, supported by PCIe Gen6 switches, CXL memory controllers, storage controllers and newly introduced PCIe retimers. Multiple design wins, including hyperscaler engagements, position the company to benefit from increasing AI infrastructure investments and the shift toward inference computing.
Microchip continues to focus on five strategic pillars: microcontrollers, analog, networking & connectivity, high-performance compute and edge AI. Its Total System Solutions strategy enables higher content per customer through integrated hardware, software and reference designs, while megatrend exposure spanning AI, industrial automation, networking, automotive modernization and sustainability supports growth above the broader semiconductor industry.
Microchip faces intense competition in high-speed connectivity and PCIe switching markets. onsemi’s strong position in automotive and industrial power semiconductors and an expanding AI infrastructure portfolio is a key catalyst. Analog Devices is raising competitive pressure through strong momentum in industrial automation, aerospace & defense, AI infrastructure and automotive. Texas Instruments remains one of Microchip’s strongest competitors through its broad analog and embedded processing portfolio, manufacturing scale and aggressive capacity expansion.
Moreover, rising foundry, OSAT, materials and manufacturing costs remain a headwind for Microchip. Sustaining utilization, managing inventory toward long-term targets and successfully executing its recovery plan while achieving its 65% gross margin and 40% operating margin objectives will remain critical to MCHP’s long-term performance.
ConclusionDespite near-term competitive and cost pressures, Microchip appears well positioned heading into fiscal first-quarter 2027. Improving bookings, channel replenishment, higher factory utilization and growing demand across AI, data center, industrial and automotive markets are expected to support solid top-line growth and margin expansion. The company’s expanding high-performance compute and connectivity portfolio, coupled with its Total System Solutions strategy, provides a strong foundation for sustained long-term growth.
Microchip currently has a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Společnost Microchip Technology oznámila konečnou dohodu o koupi Hailo, což má posílit její edge AI v robotice, dronech a průmyslové automatizaci. Hailo přidá více než 100 zákazníků a komunitu více než 10 000 vývojářů.
Key Takeaways Microchip's Hailo deal expands its edge AI reach into robotics, drones and industrial automation.Hailo adds AI accelerators, vision processors and software for demanding edge workloads.The deal brings 100 customers and a developer community exceeding 10,000 users. Microchip Technology (MCHP - Free Report) announced on Friday (July 24) that it has inked a definitive agreement to acquire Hailo, a provider of accelerated edge AI processors, advanced vision processing solutions, robotics processors and comprehensive AI software flows. The deal, expected to be completed in the ongoing quarter, will significantly strengthen MCHP’s prospects in the fast-growing edge AI market.
Hailo’s dedicated AI accelerators, vision processors and software tools will expand Microchip’s processing portfolio beyond microcontrollers, microprocessors and FPGAs, enabling it to address compute-intensive AI workloads in robots, drones, smart cameras, industrial automation and embedded systems. Hailo-8, Hailo-10 and Hailo-15 support applications ranging from conventional computer vision to transformers, large language models, vision-language models and advanced video processing.
The acquisition complements Microchip’s strategic focus on AI at the edge, one of the five business pillars created under the company’s recent organizational realignment. Microchip has been increasing its exposure to secular growth areas, with megatrend-related products accounting for more than half of revenues. Adding Hailo’s power-efficient AI technology should accelerate MCHP’s expansion into high-performance edge processing while reducing its dependence on more cyclical traditional embedded semiconductor markets.
Hailo’s technology should enhance Microchip’s Total System Solutions strategy. The deal should also broaden Hailo’s commercial reach as it brings more than 100 existing customers and a developer community exceeding 10,000 users. Moreover, Hailo’s software ecosystem will complement Microchip’s growing AI development-tool portfolio. Microchip has already strengthened FPGA-based AI capabilities through the Neuronix AI Labs acquisition and VectorBlox 3.0, which uses sparse neural-network technology to improve inference efficiency on PolarFire FPGAs and SoCs.
MCHP Faces Tough CompetitionMicrochip faces significant competition from the likes of Texas Instruments (TXN - Free Report) and Ambarella (AMBA - Free Report) in the power-efficient edge AI market.
Texas Instruments rides on its broad analog and embedded processing portfolio, extensive manufacturing capacity and deep presence in industrial, automotive and data center markets. The company is benefiting from strong growth across industrial, automotive and embedded processing businesses and noted increasing demand driven by AI infrastructure, EVs and industrial automation. Texas Instruments’ investments in manufacturing capacity, diverse product portfolio and expanding embedded solutions enable it to capture design wins in power management, embedded controllers and edge computing applications.
Ambarella continues to strengthen its leadership in AI vision processors and edge inference. The company highlighted its comprehensive Edge AI platform with 12 AI SoCs, support for more than 200 AI model architectures and over 46 million cumulative Edge AI SoC shipments. Ambarella is also expanding into robotics, industrial automation, automotive safety and edge infrastructure while ramping next-generation 5nm and 2nm AI processors. AMBA’s emphasis on low-power AI inference, unified software platform, long-term customer agreements and growing robotics design wins are major growth drivers.
MCHP’s Share Price Performance, Valuation & EstimatesShares of Microchip have appreciated 19% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 9.6%.
MCHP Stock’s Price Performance
Image Source: Zacks Investment Research
The MCHP stock is trading at a premium, with a forward 12-month price/earnings of 22.76X compared with the broader sector’s 20.64X. Microchip has a Value Score of D.
MCHP’s Valuation
Image Source: Zacks Investment Research
Akcie Microchip letos posílily o 35,3 % díky oživení polovodičového cyklu, AI a datovým centrům. Firma čeká, že tržby divize datových center vzrostou v kalendářním roce 2026 asi o 65 % na zhruba 500 milionů USD.
Key Takeaways Microchip shares are up 35.3% YTD as a turnaround, recovery and AI exposure lift prospects.Distributor restocking and book-to-bill above 1 are improving Microchip's revenue visibility.Microchip sees data center solutions revenue rising about 65% to roughly $500 million in 2026. Microchip (MCHP - Free Report) shares have jumped 35.3% year to date (YTD), outperforming the Zacks Computer and Technology sector’s appreciation of 15.8%. The outperformance can be attributed to a combination of a cyclical semiconductor recovery, execution on management's turnaround plan, improving profitability and growing AI, as well as data center exposure. However, the company’s prospects remain challenging due to supply chain constraints, rising costs and stiff competition from the likes of Texas Instruments (TXN - Free Report) , Analog Devices (ADI - Free Report) and On Semiconductor (ON - Free Report) .
YTD, Microchip shares have underperformed Texas Instruments, Analog Devices and On Semiconductor, shares of which have returned 73.6%, 44.1% and 70%, respectively. Nevertheless, we believe MCHP’s share price is well-poised to appreciate, driven by expansion into higher-value AI infrastructure as well as recovery across industrial and automotive end markets. So, what should investors do with the stock? Let’s dig deep to find out.
MCHP Stock’s Price Performance
Image Source: Zacks Investment Research
MCHP’s Prospects to Ride on AI Tailwinds and Inventory RecoveryImproving fundamentals, along with rightsizing of manufacturing footprint, overhauling of distribution strategy and improving customer relationships, bodes well for Microchip’s prospects. This, along with reducing inventory level, a fall in net leverage below 3 times and strong free cash flow generation ability, bodes well for the company’s prospects.
Microchip has been benefiting from reducing inventory levels and expects inventory to be aligned with its long-term target in a short span of time. Management stated that inventory has reduced from 201 days in December to 185 days in March, while distributor inventory declined to 26 days, near the low end of the company’s historical range. MCHP management stated distributors have begun restocking, with April representing the highest booking month in almost four years. The company now expects book-to-bill well above 1, which reflects improving revenue visibility.
Microchip expects a broad-based recovery with strength across industrial, automotive, aerospace & defense, data center, and communications, which reduces investor concerns over cyclicality. Industrial remains roughly one-third of the company’s revenues, while automotive contributes about 17%. As customer inventories normalize, these historically strong markets should continue recovering alongside factory automation, electrification and embedded computing. MCHP is well positioned to benefit from the growing demand for mixed-signal microcontrollers (MCUs), leveraging its expanding footprint in industrial embedded control, broad product portfolio and total system solutions strategy. Mixed-signal MCUs remain the company's largest product category, accounting for nearly 50% of fiscal 2026 revenues, highlighting their importance to long-term growth.
Data Center prospects are most noticeable as Data Center & Compute already represents 18% of company revenues. MCHP expects the dedicated Data Center solutions business to grow from roughly $303 million in calendar 2025 to approximately $500 million in calendar 2026 (about 65% growth), driven by strong momentum in PCIe Gen6 switches, expansion into PCIe retimers, new CXL memory controllers and storage controller growth driven by AI inference. In fact, Microchip has disclosed eight Gen6 switch design wins and expects production ramps during fiscal 2027, including one design expected to generate roughly $100 million annually.
MCHP’s Earnings Estimate Revision Shows Positive TrendThe Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $3.09 per share, up by a penny over the past 30 days and indicating 90.85% growth over fiscal 2026’s reported figure. The consensus mark for fiscal 2027 revenues is pegged at $6.23 billion, suggesting 32.26% growth from fiscal 2026’s reported figure.
Microchip expects first-quarter fiscal 2027 net sales between $1.442 billion and $1.469 billion, which reflects 35.3% year-over-year growth at the midpoint and 11% sequentially. The company expects non-GAAP earnings of 67-71 cents per share.
The Zacks Consensus Estimate for first-quarter fiscal 2027 earnings is pegged at 69 cents per share, unchanged over the past 30 days and indicating 159.26% growth over the year-ago quarter’s reported figure. The consensus mark for fiscal first-quarter revenues is pegged at $1.46 billion, suggesting 35.39% growth from the year-ago quarter’s reported figure.
MCHP Shares Are Trading at a PremiumMicrochip shares are trading at a premium as suggested by a Value Score of D.
In terms of the forward 12-month price-to-sales (P/S), the company is trading at 7.2X, a premium compared with the broader sector’s and On Semiconductor’s 6.85X and 5.3X, respectively. However, MCHP is trading at a discount compared with Texas Instruments’ and Analog Devices’ P/S multiple of 12.54X and 11.99X, respectively.
MCHP Stock’s Valuation
Image Source: Zacks Investment Research
ConclusionMicrochip has emerged from one of the industry’s toughest downturns with improving execution, strengthening demand and expanding exposure to attractive long-term growth markets. Inventory normalization, broad-based recovery across industrial and automotive markets, growing AI and data center opportunities, and improving profitability provide a solid foundation for sustained growth. While supply chain constraints, cost inflation, and intense competition remain risks, MCHP’s strengthening bookings, healthy earnings outlook and disciplined turnaround strategy position it well for continued momentum. Despite its premium valuation, Microchip’s improving fundamentals and expanding AI infrastructure portfolio make the stock an attractive choice for investors with a long-term investment horizon.
Microchip currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microchip Technology uvedla VectorBlox 3.0 SDK zdarma, aby zjednodušila nasazení AI na FPGA a urychlila implementaci modelů CNN na platformách PolarFire. Podpora sparsity má snížit výpočetní i paměťové nároky při zachování přesnosti.
CHANDLER, Ariz., July 14, 2026 (GLOBE NEWSWIRE) -- Deploying AI inference in power‑constrained and mission‑critical environments such as aerospace and defense systems requires solutions that balance performance, efficiency, reliability and ease of development. To better manage these challenges, Microchip Technology (Nasdaq: MCHP) has released the VectorBlox™ 3.0 Accelerator Software Development Kit (SDK) to help simplify FPGA‑based AI implementation and speed time‑to‑market. Offered to developers free of charge, VectorBlox 3.0 SDK and associated CoreVectorBlox IP is designed as an integrated toolchain that streamlines optimization, compilation and deployment of convolutional neural network (CNN) models on PolarFire® FPGA and SoC-based platforms. Because the accelerator scales efficiently across model sizes and supports multiple AI workloads on a single device, customers can consolidate various vision or sensor‑based AI functions on a single low power FPGA.
“As AI models continue to grow in complexity, compression is becoming essential for deploying intelligence at the edge,” said Shakeel Peera, corporate vice president and GM of Microchip’s FPGA business unit. “With VectorBlox 3.0, we’re leveraging sparsity-based model compression from our Neuronix acquisition to reduce compute demands while preserving accuracy.”
With support for sparse neural networks, VectorBlox 3.0 helps enable efficient execution of vision-based CNN models by skipping zero‑valued operations. This capability helps developers accelerate inference performance while reducing power consumption, an important advantage for always‑on edge AI applications that must balance responsiveness with energy efficiency. Enabling sparsity-based model compression is designed to reduce compute and memory demands, while preserving accuracy.
“Leveraging VectorBlox acceleration on Microchip’s PolarFire SoC enabled us to efficiently deploy advanced onboard AI pipelines for low-latency payload operations in orbit,” said Vito Fortunato, SPACEDGE™ services line manager at Planetek Italia. “The platform allowed us to validate real-time Earth Observation processing capabilities including object detection, semantic scene analysis and edge-generated actionable information products on top of the AI-eXpress-1 satellite, deployed in 2025, while providing the radiation resilience and operational reliability required for continuous Low Earth Orbit operations.”
Additionally, Spacecraft Pose Network v2 (SPNv2), a neural network designed to estimate position and orientation using vision data, enables autonomous navigation and proximity operations in space for applications such as autonomous rendezvous and docking, space debris removal, satellite inspection and formation flying. Built on mid-range, power-efficient, single-event-upset (SEU) immune PolarFire FPGAs and SoCs, the solution delivers secure boot, anti-tamper protection and high reliability for harsh environments. These features are necessary for mission‑critical defense, aerospace and industrial deployments where long operational life, data protection and system resilience are essential.
"The combination of PolarFire SoC and VectorBlox creates a powerful synergy for deploying AI-powered autonomy solutions directly in orbit,” said Federico Fontana, Head of Hardware Engineering at AIKO. “We validated this through the deployment of our clear_CHARLES suite, which provides onboard cloud and ship detection for adaptive and autonomous payload operations on power-efficient platforms, making a further step toward increasingly autonomous, responsive and software-defined space systems."
VectorBlox SDK v3.0 is supported by Microchip’s Libero® SoC Design Suite and integrates with CoreVectorBlox IP. Visit the website to learn more about the company’s full portfolio of FPGAs and design resources.
Pricing and Availability
VectorBlox SDK v3.0 and CoreVectorBlox IP are available to customers at no charge. To learn more, contact a Microchip sales representative or authorized worldwide distributor.
Resources
High-res images available through Flickr or editorial contact (feel free to publish):
Application image: https://www.flickr.com/gp/microchiptechnology/vA4q2m043tFree Webinar: Achieve Two Times Faster CNN Inference with Sparsity-Aware AI Acceleration on PolarFire® SoC FPGAs, July 16, 2026 and on demand after the live session https://event.on24.com/wcc/r/5321721/8209CC908EDAAE48CA01408C805BFA9F?partnerref=PR About Microchip Technology:
Microchip Technology Inc. is a broadline supplier of semiconductors committed to making innovative design easier through total system solutions that address critical challenges at the intersection of emerging technologies and durable end markets. Its easy-to-use development tools and comprehensive product portfolio supports customers throughout the design process, from concept to completion. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support and delivers solutions across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. For more information, visit the Microchip website at www.microchip.com.
Note: The Microchip name and logo, the Microchip logo, Libero and PolarFire are registered trademarks of Microchip Technology Incorporated in the U.S.A. and other countries. VectorBlox is a trademark of Microchip Technology Inc. in the U.S.A. and other countries. All other trademarks mentioned herein are the property of their respective companies.
Microchip těží z rostoucí poptávky po mixed-signal MCU; ty tvořily téměř 50 % tržeb fiskálního 2026. Bookings sílí, book-to-bill zůstává nad jednou a duben byl nejsilnější za téměř čtyři roky.
Key Takeaways MCHP is positioned to gain from rising mixed-signal MCU demand across industrial and auto markets.Mixed-signal MCUs made up nearly 50% of fiscal 2026 revenue, supporting long-term growth.Bookings improved, book-to-bill stayed above one and April marked the strongest month in nearly four years. Microchip Technology (MCHP - Free Report) is well positioned to benefit from the growing demand for mixed-signal microcontrollers (MCUs), leveraging its expanding footprint in industrial embedded control, broad product portfolio and total system solutions strategy. Mixed-signal MCUs remain the company's largest product category, accounting for nearly 50% of fiscal 2026 revenues, highlighting their importance to long-term growth.
The company is witnessing renewed demand across its key MCU-driven markets, including industrial automation, automotive, aerospace & defense, communications and AI-enabled data centers. MCHP management noted that innovation-driven growth has resumed as customers restart new product development after working through excess inventories. These new designs increasingly require intelligent mixed-signal MCUs capable of integrating analog, connectivity, security and real-time control functions into a single platform. Microchip highlighted particularly strong innovation activity in industrial automation, automotive, aerospace & defense and data center applications.
Microchip’s leadership in mixed-signal MCUs is further strengthened by its Total System Solutions strategy. Rather than selling standalone microcontrollers, the company bundles MCUs with analog ICs, power management, connectivity, timing, security and FPGA products, increasing content per design win and making its platforms more attractive for customers. The company continues to maintain strong attach rates while expanding reference designs that encourage customers to adopt more Microchip components within a single system, supporting higher long-term revenue per application.
The company’s diversified customer base and long product life cycles also provide resilience. Mixed-signal MCU demand is recovering across thousands of customers as inventories normalize, while bookings have strengthened, book-to-bill remains above one, and April represented the strongest booking month in nearly four years. Microchip expects nearly all business units, including its microcontroller franchise, to participate in the ongoing recovery, supported by broad-based demand across industrial, automotive, aerospace & defense and data center markets.
MCHP Faces Tough CompetitionMicrochip is facing significant competition from the likes of Texas Instruments (TXN - Free Report) and Analog Devices (ADI - Free Report) .
Texas Instruments competes directly with Microchip by expanding its embedded processing portfolio around MCU targeting industrial, automotive and power applications. Management emphasized that Texas Instruments is shifting its embedded business toward a broader MCU portfolio with integrated analog peripherals, application-specific MCUs, motor control, power conversion, connectivity and radar capabilities. The planned acquisition of Silicon Labs further strengthens its wireless MCU offerings, particularly for industrial IoT, giving Texas Instruments a broader embedded portfolio that competes directly with Microchip's mixed-signal MCU franchise.
Analog Devices competes with Microchip in embedded processing by combining high-performance mixed-signal technologies with embedded intelligence for industrial and automotive applications. Rather than offering standalone MCUs, Analog Devices integrates sensing, signal-chain, power management, connectivity and software to enable edge intelligence for digital factories, robotics, healthcare and automotive systems. This allows ADI to address complex embedded control applications where precision analog performance and real-time processing are critical, competing directly with Microchip's higher-end mixed-signal MCU portfolio.
MCHP’s Share Price Performance, Valuation & EstimatesShares of Microchip have appreciated 37.4% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 16.6%.
MCHP Stock’s Price Performance
Image Source: Zacks Investment Research
The MCHP stock is trading at a premium, with a forward 12-month price/earnings of 26.35X compared with the broader sector’s 24.98X. Microchip has a Value Score of D.
MCHP’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Microchip’s fiscal 2027 earnings is currently pegged at $3.09 per share, up by a penny over the past 30 days, suggesting 88.4% growth from the fiscal 2026’s reported figure.
Microchip currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Microchip uvedl DSA504RT, radiačně odolný vesmírný generátor hodin pro letectví a obranu. Čip se šesti výstupy snižuje počet součástek, náklady na kusovník i riziko programu.
Key Takeaways Microchip introduced DSA504RT, a radiation-tolerant clock generator for aerospace and defense systems. DSA504RT generates six phase-aligned outputs from one source, reducing oscillators and component count. The device lowers the bill of materials and screening costs while reducing program risk. Microchip Technology (MCHP - Free Report) has introduced the DSA504RT, a space-grade, radiation-tolerant programmable clock generator with six outputs, developed to meet the demanding timing requirements of aerospace and defense applications.
The DSA504RT simplifies timing architecture by generating multiple clean, phase-aligned frequencies from a single master source. The device minimizes the need for multiple discrete oscillators, reduces the overall component count and enhances system failure in time rate. It also lowers power consumption and mass while simplifying distribution networks to keep subsystems synchronized, even in harsh operating environments and during GNSS outages or disruptions.
The clock generator incorporates an Analog Phase-Locked Loop (“APLL”) with spread spectrum capability, two fractional dividers, two integer dividers and six highly configurable output buffers. Each output buffer can function either as a differential driver supporting LVPECL, LVDS or HCSL standards or as a pair of single-ended CMOS outputs. The DSA504RT delivers ultra-low jitter performance of as little as 200 femtoseconds (12 kHz–20 MHz) and complies with PCIe Gen 1-7 standards. Its high level of integration enables engineers to replace multiple crystals, oscillators and buffers with a single device, thereby improving design reliability while reducing both bill of materials costs and overall design complexity.
Available in QFN28 and CQFP32 packages, the DSA504RT is designed as a companion device for complex aerospace and defense systems. It enables highly integrated clock architectures on a single chip while distributing precise timing references to subsystems based on radiation-tolerant or radiation-hardened FPGAs and MCUs.
By adding a cost-effective, space-grade device to its established clock product family, Microchip aims to deliver premium timing performance while lowering overall bill of materials and screening costs. The company also noted that customers can remain within its radiation-qualified ecosystem, benefiting from its space heritage, documentation and global technical support to accelerate development and reduce program risk.
Taking a Look at Launches by Other Tech CompaniesIn 2025, SiTime Corporation (SITM - Free Report) , a provider of precision timing solutions, announced the launch of its TimeFabric software suite. When combined with SiTime’s oscillators and clocks, the software delivers up to nine times greater time-synchronization accuracy than conventional quartz-based solutions, helping improve system performance and resource utilization in AI data centers.
The TimeFabric software suite, launched by SiTime, comprises two key modules: synchronization software that complies with IEEE 1588 standards and proprietary technology that extends critical holdover performance to up to 24 hours. Together, these capabilities support highly accurate and resilient timing across advanced computing and networking environments.
In 2024, Adtran (ADTN - Free Report) launched its Oscilloquartz Time Scale System, developed to meet the precise timekeeping requirements of national metrology institutes, scientific research facilities and other applications demanding the highest levels of accuracy and traceability. Adtran’s Oscilloquartz Time Scale System delivers exceptional timekeeping by integrating up to eight different clock types, including optical cesium atomic clocks, hydrogen maser clocks and GNSS receivers, into a single, stable time scale. Similar to Microchip’s recently launched TimePictra 12 platform, Adtran’s launch focuses on helping operators manage increasingly complex synchronization environments while improving resilience and timing accuracy.
MCHP’s Price Performance, Valuation & EstimatesShares of MCHP have gained in double digits (% wise) over the past six months, but lagged the Zacks Semiconductor-Analog-and-Mixed industry’s return.
6-Month Price ComparisonImage Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), Microchip is trading at a discount compared with its industry.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for MCHP’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
MCHP’s Zacks RankMCHP currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MCHP za tři měsíce vzrostl o 56,5 % díky silné poptávce po AI a datových centrech. Za čtvrtletí čeká tržby 1,442–1,469 mld. USD a non-GAAP EPS 67–71 centů.
Key Takeaways MCHP's shares gained 56.5% in three months, outpacing its industry and tech sector.AI demand is lifting MCHP, with Gen 4 and Gen 5 data-center products seeing strong sales growth.MCHP expects June-quarter sales of $1.442B-$1.469B and non-GAAP EPS of 67-71 cents. Shares of Microchip Technology (MCHP - Free Report) , which develops, manufactures and sells smart, connected and secure embedded control solutions, have performed impressively over the past three months, gaining 56.5%. Owing to this solid rally, shares of this tech company have surpassed the Zacks Semiconductor-Analog-and-Mixed industry's 50% growth and the Zacks Computer and Technology sector's 28% uptick.
MCHP's shares have outperformed those of fellow industry players Monolithic Power Systems (MPWR - Free Report) and Analog Devices (ADI - Free Report) . Shares of Monolithic Power Systems, as well as Analog Devices, despite lagging the Microchip stock, have gained in double digits (% wise) over the past three months.
3-Month Price ComparisonImage Source: Zacks Investment Research
MCHP’s shares have performed well over a longer time frame, too, surging more than 45% in a year. Over the past year, Monolithic Power Systems and Analog Devices’ shares have performed even better.
Given MCHP's impressive rally, investors might wonder if the opportunity to add this high-flying stock to their portfolio has passed. However, we believe MCHP has a lot going in its favor, and this rally is far from over. In fact, the stock holds substantial upside potential. MCHP currently has a Momentum Score of A. Technical indicators suggest continued strong performance for the shipping company. The stock trades above its 50-day moving average, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment and confidence in the tech company’s prospects.
50-Day Moving Average Data of MCHP Stock
Reasons for Staying Bullish on MCHP StockAI Boom Aids MCHP: Microchip Technology benefits from growing AI investments. The company’s Gen 4 and Gen 5 data center products are witnessing strong sales growth. MCHP’s new products are expected to gain traction with the launch of the industry's first 3-nanometer-based PCIe Gen 6 switch that powers modern AI infrastructure.
These switches offer double bandwidth, lower latency, advanced security and high-density AI connectivity for next-generation cloud and data center performance. The success of the restructuring plan also bodes well for MCHP’s prospects. The company also entered the PCIe retimer market in the June 2026 quarter as a companion device for Gen 6 switches and disclosed an OEM design win that displaced a competitor.
MCHP has expanded connectivity, storage and compute offerings for AI and data center applications, as well as intelligent power modules for AI at the edge. These factors are expected to drive top-line growth. MCHP’s dominance in 8, 16 and 32-bit PIC microcontrollers remains a major driver of top-line growth.
Momentum Builds Across End Markets: While releasing the fourth-quarter fiscal 2026 results last month, management pointed toward recovery across automotive, industrial, communication, data center, aerospace and defense, and consumer, with the aerospace and defense sector emerging as the strongest sales performer in the quarter. The company also highlighted improved customer relationships and many customers reengaged in purchases after working through excess inventory.
Management also stated that order activity strengthened meaningfully, with bookings for the March quarter significantly higher than those witnessed in the December quarter. The book-to-bill ratio for the March quarter was well above 1, resulting in a much higher backlog entering the June quarter compared with when the company entered the March quarter. Additionally, April was the largest booking month in almost four years.
Upbeat Outlook Bodes Well: In the June quarter (first-quarter fiscal 2027), management expects strong growth from the data center, aerospace and defense sector, industrial, and automotive end markets. All business units are anticipated to drive growth. For the June quarter, net sales are expected in the $1.442-$1.469 billion band. The company expects non-GAAP earnings of 67-71 cents per share, alongside a non-GAAP gross margin of 62.25-63.25% and a non-GAAP operating expense of 28.75-29.25%.
Impressive Earnings History: Microchip has outpaced the Zacks Consensus Estimate for earnings in each of the past four quarters. The average beat is 8.7%.
MCHP Still a Smart Buy for InvestorsMicrochip is well-positioned for continued success. Microchip’s growth outlook is impressive and supported by data center connectivity ramps, aerospace and defense demand, and operating leverage as utilization normalizes. The strong earnings history also bodes well for the company.
The consensus price target for MCHP stock is $115.67, implying an upside of more than 15% from current levels.
Image Source: Zacks Investment Research
With many positives driving the stock, MCHP presents a compelling investment opportunity now. This Zacks Rank #1 (Strong Buy) stock is an ideal candidate for addition to one's portfolio. You can see the complete list of today’s Zacks #1 Rank stocks here.
