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.
TOKYO--(BUSINESS WIRE)--Asahi Kasei Microdevices has announced that its CZ39 and CZ3K series have been adopted as in Microchip Technology's ML/AI-based AFD reference design.
Microchip Technology is rated Buy as cyclical recovery combines with emerging structural growth from data centers and aerospace & defense. MCHP's valuation becomes notably more attractive from FY2028 onward, with P/E dropping to 16x and potential upside to $91–$103 per share. Data center revenue is accelerating, driven by PCIe Gen6 adoption and diversified product exposure, while industrial and automotive markets are rebounding.
CHANDLER, Ariz. and SAITAMA, Japan, Sept. 03, 2026 (GLOBE NEWSWIRE) -- Microchip Technology (Nasdaq: MCHP), a broadline supplier of semiconductors committed to making innovative design easier through total system solutions, and Marelli, a global automotive supplier, today announces a new solution that enables graphics and video content generated by a vehicle's central computer to be streamed directly to automotive displays using ASA Motion Link (ASA-ML), an open standard for automotive video connectivity. The demonstrator of this solution helps vehicle makers simplify display architectures, optimize system costs and increase sourcing flexibility while supporting the transition toward software-defined vehicles (SDVs).
ASA Motion Link is an open standard for automotive video connectivity and SerDes (serializer-deserializer) communication, defined by the Automotive SerDes Alliance (ASA), a global consortium of vehicle makers, Tier 1 suppliers and semiconductor companies. By enabling secure, high-speed video and graphics transmission across products from multiple technology providers, the standard supports greater compatibility across the automotive ecosystem and provides a scalable alternative to proprietary video transmission technologies. As a founding member of ASA, Microchip is advancing the automotive industry's transition from proprietary connectivity technologies to open, interoperable standards, and has demonstrated broad interoperability with its camera solutions and is now extending those solutions to enable display connectivity.
As vehicle architectures evolve toward centralized computing and software-defined vehicles (SDVs), vehicle makers are looking for connectivity solutions that can support growing performance demands while reducing complexity, controlling costs and enabling scalable vehicle electronics architectures. In the joint demonstrator solution, graphics and video content generated by the vehicle's central computer is processed and transmitted through Microchip's VS7000 ASA-ML chipset over a high-speed standardized link.
Marelli pioneers the display-side integration of the technology by enabling the configuration and optimization of the ASA ML deserializer to decode standardized video streams directly at the display. This ensures accurate reception, synchronization and delivery of centrally generated content, including camera feeds, navigation maps, infotainment graphics and vehicle control interfaces, while enabling simplified display-side electronic architectures.
"The transition to software-defined vehicles is driving demand for more open, flexible and scalable electronic architectures," said Kelei Shen, president of Marelli's electronics business. "As an integrator within the automotive ecosystem, Marelli brings together best-in-class technologies from multiple partners to deliver complete solutions for vehicle makers. This collaboration highlights how open standards can accelerate innovation while providing interoperability needed for the next generation of vehicle architectures.”
“Open standards play a critical role in accelerating innovation by reducing dependency on proprietary technologies,” said Kevin So, vice president of Microchip’s communications business unit. “Our collaboration with Marelli demonstrates how ASA Motion Link provides automotive manufacturers with a secure, interoperable and scalable connectivity solution that simplifies integration across the ecosystem.”
Technology Highlights
Open interoperability enabling seamless connectivity between cockpit systems and displays from multiple technology providers.Greater supplier flexibility thanks to open protocol specifications supported across the automotive ecosystem.Integrated security with link-layer authentication and encryption embedded in the communication channel.Robust data transmission with lossless communication and high immunity to electromagnetic noise.Scalable performance supporting data rates up to 16 Gbps to address a range of display requirements.Optimized efficiency enabled by embedded Time Division Duplex (TDD) functionality and simplified Forward Error Correction (FEC), contributing to lower power consumption.Path to increasingly Ethernet-centric vehicle architectures. The collaboration demonstrates how open-standard connectivity supports in-vehicle networking and electronics by enabling secure communication between centralized computing systems and displays. It also reflects Marelli's broader commitment to adopting open standards that help simplify development, optimize system costs, and promote a more open automotive ecosystem.
For more information about Microchip’s ASA-ML solutions, visit its website.
Resources
High-res image available through Flickr or editorial contact (feel free to publish):
Application image: www.flickr.com/photos/microchiptechnology/55442855200/sizes/l 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.
About Marelli:
Marelli is a global mobility technology supplier to the automotive industry. With a strong and established track record in innovation and manufacturing excellence, our mission is to transform the future of mobility through working with customers and partners to create a safer, greener, and better-connected world. With around 40,000 employees worldwide, the Marelli footprint includes over 150 sites globally. For more information, visit the Marelli website at www.marelli.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.
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.
Algert Global LLC bought a new stake in Microchip Technology Incorporated (NASDAQ:MCHP – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 67,404 shares of the semiconductor company’s stock, valued at approximately $6,147,000.
Other institutional investors have also recently made changes to their positions in the company. AQR Capital Management LLC grew its position in Microchip Technology by 51.3% in the 1st quarter. AQR Capital Management LLC now owns 17,201 shares of the semiconductor company’s stock valued at $827,000 after acquiring an additional 5,835 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in shares of Microchip Technology by 101.8% during the first quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company’s stock valued at $59,000 after purchasing an additional 616 shares during the period. Cresset Asset Management LLC grew its holdings in shares of Microchip Technology by 5.4% in the second quarter. Cresset Asset Management LLC now owns 11,433 shares of the semiconductor company’s stock worth $805,000 after purchasing an additional 589 shares during the last quarter. AXA S.A. increased its stake in Microchip Technology by 21.3% in the 2nd quarter. AXA S.A. now owns 51,552 shares of the semiconductor company’s stock worth $3,628,000 after buying an additional 9,043 shares during the period. Finally, Treasurer of the State of North Carolina lifted its holdings in Microchip Technology by 1.6% during the 2nd quarter. Treasurer of the State of North Carolina now owns 246,530 shares of the semiconductor company’s stock valued at $17,348,000 after buying an additional 3,851 shares in the last quarter. Institutional investors own 91.51% of the company’s stock.
Microchip Technology Price Performance Shares of Microchip Technology stock opened at $74.05 on Thursday. The company has a quick ratio of 1.11, a current ratio of 1.92 and a debt-to-equity ratio of 0.83. The firm has a market cap of $40.21 billion, a PE ratio of 110.52, a P/E/G ratio of 0.51 and a beta of 1.76. The business has a 50-day moving average price of $82.92 and a 200 day moving average price of $81.43. Microchip Technology Incorporated has a twelve month low of $48.52 and a twelve month high of $105.91.
Microchip Technology (NASDAQ:MCHP – Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, topping the consensus estimate of $0.70 by $0.06. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The firm had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the prior year, the firm earned $0.27 EPS. The company’s revenue for the quarter was up 38.0% on a year-over-year basis. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Sell-side analysts predict that Microchip Technology Incorporated will post 3.16 earnings per share for the current fiscal year. Microchip Technology Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be given a $0.455 dividend. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.82 dividend on an annualized basis and a yield of 2.5%. Microchip Technology’s dividend payout ratio is presently 271.64%.
Insider Buying and Selling In other Microchip Technology news, CFO James Eric Bjornholt sold 4,112 shares of the business’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the completion of the transaction, the chief financial officer owned 28,573 shares in the company, valued at $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total transaction of $487,600.00. Following the completion of the sale, the chief operating officer directly owned 130,508 shares in the company, valued at approximately $12,727,140.16. This represents a 3.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 9,949 shares of company stock valued at $864,493 in the last ninety days. 1.79% of the stock is currently owned by corporate insiders.
Wall Street Analysts Forecast Growth Several research firms have issued reports on MCHP. Wells Fargo & Company lowered their price objective on shares of Microchip Technology from $95.00 to $88.00 and set an “equal weight” rating for the company in a research report on Monday, July 20th. Barclays lifted their price target on shares of Microchip Technology from $80.00 to $105.00 and gave the company an “equal weight” rating in a research note on Monday, May 11th. Zacks Research downgraded Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 17th. Weiss Ratings raised shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. Finally, JPMorgan Chase & Co. increased their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Microchip Technology presently has an average rating of “Moderate Buy” and an average target price of $98.67.
Check Out Our Latest Report on MCHP
Microchip Technology Profile (Free Report)
Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.
Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.
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Stock to Watch: Microchip Technology (MCHP - Free Report) Microchip Technology develops, manufactures and sells smart, connected and secure embedded control solutions. The company focuses on general-purpose and specialized 8-bit, 16-bit, and 32-bit mixed-signal microcontroller, microprocessors, analog, FPGA and memory products. Microchip now offers 64-bit mixed-signal microprocessors, expanding its footprint beyond the 32-bit architecture.
MCHP is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. MCHP has a Momentum Style Score of A, and shares are up 3.8% over the past four weeks.
For fiscal 2027, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.54 to $3.63 per share. MCHP boasts an average earnings surprise of +7.7%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MCHP should be on investors' short list.
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.
Advisors Capital Management LLC acquired a new position in Microchip Technology Incorporated (NASDAQ:MCHP – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 8,609 shares of the semiconductor company’s stock, valued at approximately $785,000.
A number of other large investors have also added to or reduced their stakes in MCHP. Wolverine Asset Management LLC grew its stake in shares of Microchip Technology by 3,833.7% during the 4th quarter. Wolverine Asset Management LLC now owns 37,921 shares of the semiconductor company’s stock valued at $2,416,000 after purchasing an additional 36,957 shares during the period. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group bought a new position in shares of Microchip Technology in the fourth quarter worth about $6,691,000. Epoch Investment Partners Inc. grew its holdings in Microchip Technology by 16.5% during the 4th quarter. Epoch Investment Partners Inc. now owns 1,349,136 shares of the semiconductor company’s stock valued at $85,967,000 after buying an additional 191,339 shares in the last quarter. Peregrine Investment Management Inc. purchased a new stake in Microchip Technology during the 1st quarter valued at approximately $5,492,000. Finally, Norges Bank bought a new stake in shares of Microchip Technology during the fourth quarter valued at approximately $664,564,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.
Microchip Technology Trading Up 0.4% Shares of MCHP opened at $76.08 on Friday. The firm has a 50-day moving average price of $84.29 and a 200 day moving average price of $81.49. Microchip Technology Incorporated has a 12-month low of $48.52 and a 12-month high of $105.91. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. The firm has a market capitalization of $41.31 billion, a P/E ratio of 113.55, a P/E/G ratio of 0.53 and a beta of 1.76.
Microchip Technology (NASDAQ:MCHP – Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.70 by $0.06. The firm had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.46 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. The business’s revenue for the quarter was up 38.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.27 EPS. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Sell-side analysts forecast that Microchip Technology Incorporated will post 3.16 EPS for the current year. Microchip Technology Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 24th will be paid a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Monday, August 24th. Microchip Technology’s dividend payout ratio is presently 271.64%.
Analyst Ratings Changes MCHP has been the subject of a number of recent research reports. Wall Street Zen raised shares of Microchip Technology from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Truist Financial cut their price target on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a report on Friday, August 7th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $120.00 price objective on shares of Microchip Technology in a research report on Friday, August 7th. Weiss Ratings upgraded Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Finally, TD Cowen decreased their target price on Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research report on Monday, July 13th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $98.67.
View Our Latest Stock Analysis on MCHP
Insider Activity In other news, CFO James Eric Bjornholt sold 837 shares of the stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $80.26, for a total value of $67,177.62. Following the transaction, the chief financial officer owned 30,960 shares in the company, valued at approximately $2,484,849.60. This represents a 2.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Matthew W. Chapman sold 3,000 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $97.52, for a total value of $292,560.00. Following the completion of the sale, the director owned 17,665 shares of the company’s stock, valued at approximately $1,722,690.80. This represents a 14.52% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 8,837 shares of company stock worth $847,338. 1.79% of the stock is currently owned by corporate insiders.
(Free Report)
Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.
Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.
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Advisors Preferred LLC bought a new position in Microchip Technology Incorporated (NASDAQ:MCHP – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 29,540 shares of the semiconductor company’s stock, valued at approximately $2,500,000.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in Microchip Technology by 2.0% during the 4th quarter. Vanguard Group Inc. now owns 73,506,339 shares of the semiconductor company’s stock valued at $4,683,824,000 after purchasing an additional 1,430,781 shares during the period. State Street Corp grew its holdings in Microchip Technology by 2.8% during the 4th quarter. State Street Corp now owns 28,863,048 shares of the semiconductor company’s stock valued at $1,839,153,000 after buying an additional 783,157 shares in the last quarter. Boston Partners raised its position in shares of Microchip Technology by 9.5% during the third quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company’s stock valued at $1,044,024,000 after buying an additional 1,406,885 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Microchip Technology by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 15,394,985 shares of the semiconductor company’s stock worth $977,638,000 after buying an additional 213,188 shares in the last quarter. Finally, Invesco Ltd. boosted its position in shares of Microchip Technology by 4.8% during the fourth quarter. Invesco Ltd. now owns 14,992,128 shares of the semiconductor company’s stock worth $955,298,000 after acquiring an additional 684,561 shares during the last quarter. Institutional investors own 91.51% of the company’s stock.
Insider Buying and Selling In related news, Director Matthew W. Chapman sold 3,000 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $97.52, for a total transaction of $292,560.00. Following the completion of the sale, the director owned 17,665 shares of the company’s stock, valued at $1,722,690.80. This represents a 14.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO James Eric Bjornholt sold 837 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $80.26, for a total transaction of $67,177.62. Following the completion of the sale, the chief financial officer owned 30,960 shares of the company’s stock, valued at approximately $2,484,849.60. This trade represents a 2.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,837 shares of company stock worth $847,338 in the last 90 days. 1.79% of the stock is owned by corporate insiders.
Trending Headlines about Microchip Technology Here are the key news stories impacting Microchip Technology this week: Positive Sentiment: Technical commentary suggests the recently weakened stock could make a contrarian rebound toward $85, based on historical recovery patterns. Deflated Microchip Technology Stock Could Target a Contrarian Move to $85 Positive Sentiment: Microchip’s AI and data-center opportunities could support a recovery. Recent results also showed strong momentum, with revenue up 38% year over year and earnings exceeding analysts’ expectations; management’s next-quarter EPS guidance of $0.91 to $0.95 is another potential catalyst. Positive Sentiment: Cantor Fitzgerald reiterated an Overweight rating, while the broader analyst consensus remains Moderate Buy with an average price target of $98.85, implying meaningful upside from recent levels. Cantor Fitzgerald Reiterates Overweight Rating for Microchip Technology Positive Sentiment: The company’s quarterly dividend of $0.455 per share, representing a 2.4% annualized yield, may provide support for income-oriented investors. Neutral Sentiment: Former Microchip chief operating officer Richard Simoncic was appointed CEO of Menlo Microsystems. The move highlights the value of Microchip’s executive talent but does not directly change MCHP’s operations or outlook. Menlo Microsystems Appoints Richard Simoncic as Chief Executive Officer Negative Sentiment: Zacks Research downgraded MCHP from Strong Buy to Hold, reflecting limited near-term conviction after the recent decline. Negative Sentiment: Analysts caution that supply constraints, competitive pressure and MCHP’s elevated valuation could limit near-term gains despite its long-term AI growth prospects. Microchip Stock Drops 9% in a Month: Should You Buy, Sell or Hold it? Negative Sentiment: CFO James Eric Bjornholt sold 837 shares for approximately $67,178 at $80.26 each, reducing his direct stake by 2.63%. Although relatively small, the insider sale adds a modest negative signal. Microchip Technology CFO Sells 837 Shares Microchip Technology Trading Down 1.6% NASDAQ MCHP opened at $75.81 on Friday. The company has a current ratio of 1.92, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83. The stock has a market cap of $41.17 billion, a PE ratio of 113.15, a PEG ratio of 0.54 and a beta of 1.76. The company’s 50-day moving average price is $84.67 and its 200-day moving average price is $81.53. Microchip Technology Incorporated has a 12 month low of $48.52 and a 12 month high of $105.91.
Microchip Technology (NASDAQ:MCHP – Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.70 by $0.06. The firm had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.46 billion. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The business’s revenue for the quarter was up 38.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Equities research analysts forecast that Microchip Technology Incorporated will post 3.16 earnings per share for the current year.
Microchip Technology Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 24th will be paid a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Monday, August 24th. Microchip Technology’s payout ratio is 271.64%.
Analyst Ratings Changes Several analysts have commented on the stock. Truist Financial decreased their price target on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a research note on Friday, August 7th. Barclays boosted their target price on Microchip Technology from $80.00 to $105.00 and gave the stock an “equal weight” rating in a research report on Monday, May 11th. Zacks Research cut Microchip Technology from a “strong-buy” rating to a “hold” rating in a report on Monday. Weiss Ratings raised Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Finally, Susquehanna increased their target price on Microchip Technology from $95.00 to $120.00 and gave the company a “positive” rating in a research report on Friday, May 8th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $98.85.
Get Our Latest Stock Analysis on MCHP
(Free Report)
Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.
Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.
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Microchip Technology (NASDAQ:MCHP) held its 2026 annual meeting of stockholders virtually on Aug. 18, with shareholders approving all four proposals presented by the company, including the election of seven directors and an increase in shares available under its equity incentive plan.
Steve Sanghi, Microchip’s chair, president and chief executive officer, said the event marked the company’s first fully virtual annual meeting. He said the format was intended to provide improved access for a greater number of shareholders.
According to Rob Suffoletta, a partner at Wilson Sonsini Goodrich & Rosati who served as secretary and inspector of election for the meeting, Microchip had 543,008,370 common shares outstanding and eligible to vote as of the June 22 record date. Shares representing 481,752,516 votes, or about 88.71% of the voting power, were represented virtually or by proxy, establishing a quorum.
Board Election Approved
Shareholders elected all seven nominees to serve on Microchip’s board until the 2027 annual meeting or until their successors are elected and qualified. The elected directors were:
Ellen Barker
Rick Cassidy
Matthew Chapman
Mitch Little
Victor Peng
Karen Rapp
Steve Sanghi
Sanghi noted that Barker previously served as senior vice president and chief information officer of Texas Instruments; Cassidy was formerly senior vice president of TSMC’s Corporate Strategy Office; and Chapman was previously CEO of Northwest Evaluation Association.
Little is a retired senior vice president of worldwide client engagement at Microchip, while Peng previously served as president of Advanced Micro Devices. Rapp is the former chief financial officer of National Instruments.
Equity Plan, Auditor and Executive Pay Proposals Pass
In addition to the board election, shareholders approved an amendment and restatement of Microchip’s 2004 Equity Incentive Plan. The approved change increases the number of common shares authorized for issuance under the plan by 12 million shares.
Shareholders also ratified the appointment of Ernst & Young LLP as Microchip’s independent registered public accounting firm for the fiscal year ending March 31, 2027.
The company’s advisory, non-binding proposal regarding compensation for named executive officers was also approved. Sanghi said the company would report final voting results in a Form 8-K filing within four business days.
No shareholder comments were submitted regarding the proposals during the formal business portion of the meeting, and the company reported that no questions were entered through the virtual meeting portal during the subsequent question-and-answer session.
About Microchip Technology (NASDAQ:MCHP)
Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.
Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.
Former Microchip COO brings 35 years of semiconductor scaling experience as Menlo Micro expands commercial adoption across AI infrastructure and high-growth markets Former Microchip COO brings 35 years of semiconductor scaling experience as Menlo Micro expands commercial adoption across AI infrastructure and high-growth markets
AI Is Reviving an Overlooked Chip Category—and These 3 Names Are Riding the Demand WaveMicrochip Technology NASDAQ: MCHP held its 2026 annual meeting of stockholders virtually on Aug. 18, with shareholders approving all four proposals presented by the company, including the election of seven directors and an increase in shares available under its equity incentive plan.
Steve Sanghi, Microchip’s chair, president and chief executive officer, said the event marked the company’s first fully virtual annual meeting. He said the format was intended to provide improved access for a greater number of shareholders.
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Microchip Technology Says the Slump Is Ending—The Stock Is Starting to AgreeAccording to Rob Suffoletta, a partner at Wilson Sonsini Goodrich & Rosati who served as secretary and inspector of election for the meeting, Microchip had 543,008,370 common shares outstanding and eligible to vote as of the June 22 record date. Shares representing 481,752,516 votes, or about 88.71% of the voting power, were represented virtually or by proxy, establishing a quorum.
Board Election Approved Shareholders elected all seven nominees to serve on Microchip’s board until the 2027 annual meeting or until their successors are elected and qualified. The elected directors were:
Ellen Barker Rick Cassidy Matthew Chapman Mitch Little Victor Peng Karen Rapp Steve Sanghi Why These 3 Automotive & Industrial Chip Stocks Just SoaredSanghi noted that Barker previously served as senior vice president and chief information officer of Texas Instruments; Cassidy was formerly senior vice president of TSMC’s Corporate Strategy Office; and Chapman was previously CEO of Northwest Evaluation Association.
Little is a retired senior vice president of worldwide client engagement at Microchip, while Peng previously served as president of Advanced Micro Devices. Rapp is the former chief financial officer of National Instruments.
Equity Plan, Auditor and Executive Pay Proposals Pass In addition to the board election, shareholders approved an amendment and restatement of Microchip’s 2004 Equity Incentive Plan. The approved change increases the number of common shares authorized for issuance under the plan by 12 million shares.
Shareholders also ratified the appointment of Ernst & Young LLP as Microchip’s independent registered public accounting firm for the fiscal year ending March 31, 2027.
The company’s advisory, non-binding proposal regarding compensation for named executive officers was also approved. Sanghi said the company would report final voting results in a Form 8-K filing within four business days.
No shareholder comments were submitted regarding the proposals during the formal business portion of the meeting, and the company reported that no questions were entered through the virtual meeting portal during the subsequent question-and-answer session.
About Microchip Technology (NASDAQ:MCHP)Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.
Microchip's products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.
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SCHMID Group (NASDAQ:SHMD – Get Free Report) and Microchip Technology (NASDAQ:MCHP – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Earnings and Valuation This table compares SCHMID Group and Microchip Technology”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio SCHMID Group $75.72 million 4.16 N/A N/A N/A Microchip Technology $4.71 billion 9.12 $230.00 million $0.67 118.16 Microchip Technology has higher revenue and earnings than SCHMID Group.
Insider and Institutional Ownership 46.0% of SCHMID Group shares are owned by institutional investors. Comparatively, 91.5% of Microchip Technology shares are owned by institutional investors. 15.1% of SCHMID Group shares are owned by company insiders. Comparatively, 1.8% of Microchip Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations This is a breakdown of current recommendations for SCHMID Group and Microchip Technology, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score SCHMID Group 1 0 0 0 1.00 Microchip Technology 0 7 13 3 2.83 Microchip Technology has a consensus target price of $98.85, suggesting a potential upside of 24.86%. Given Microchip Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Microchip Technology is more favorable than SCHMID Group.
Profitability This table compares SCHMID Group and Microchip Technology’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets SCHMID Group N/A N/A N/A Microchip Technology 9.34% 14.97% 6.80% Volatility and Risk SCHMID Group has a beta of -0.26, indicating that its stock price is 126% less volatile than the S&P 500. Comparatively, Microchip Technology has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500.
Summary Microchip Technology beats SCHMID Group on 11 of the 12 factors compared between the two stocks.
About SCHMID Group (Get Free Report)
SCHMID Group N.V. develops and manufactures equipment and process solutions for electronics, photovoltaics, glass, and energy systems in Germany and internationally. The company offers electronics equipment, ET board, vertical and horizontal wet process, vacuum metallization and tech, plating, chemical mechanical polishing, and automation system solutions; and systems and process solutions for manufacturing and processing photovoltaic products, such as wafers, cells, modules, and thin films, as well as turnkey production lines. It also provides maintenance, after sales, customer training, and on-site services, as well as offers spare parts. The company was founded in 1864 and is based in Freudenstadt, Germany.
About Microchip Technology (Get Free Report)
Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications. It also provides analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes, and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program microcontroller, FPGA, and microprocessor products for specific applications. In addition, the company offers serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, and aerospace products. The company was incorporated in 1989 and is headquartered in Chandler, Arizona.
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Boomfish Wealth Group LLC reduced its position in Microchip Technology Incorporated (NASDAQ: MCHP) by 32.3% during the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 27,843 shares of the semiconductor company's stock after selling 13,306 shares during the quarter. Boomfish
CHANDLER, Ariz., Aug. 13, 2026 (GLOBE NEWSWIRE) -- The growing New Space market is fueling demand for smaller, less expensive space hardware to support short-duration missions for applications such as satellite-to-cellular communications, alternative navigation and Earth imaging.
Key Takeaways Microchip says the inventory correction is complete, with June bookings the strongest in about four years.MCHP expects 2026 data center sales near $1B, up about 69%, after 97.8% June-quarter growth.Microchip guides September sales to $1.589B-$1.618B as external supply constraints tighten. Microchip Technology Incorporated (MCHP - Free Report) used its fiscal first-quarter earnings call to emphasize a broader demand recovery, depleted channel inventories and accelerating data center exposure, while warning that external supply constraints are tightening.
Reported revenues of $1.48 billion topped the Zacks Consensus Estimate of $1.46 billion. The company reported non-GAAP earnings of $0.76 per share, which beat the consensus mark of $0.70. Management focused on the durability of the recovery and another September step-up.
MCHP Sees the Recovery BroadeningPresident and CEO Steve Sanghi said that the distribution inventory correction is complete. Distributor inventory ended June at 25 days, while sell-through increased 17% sequentially and customer activity strengthened.
A UBS analyst asked how long above-seasonal growth can continue. Sanghi, Microchip's president and CEO, said that data center and aerospace and defense demand could extend the cycle, while industrial and automotive entered recovery later.
Sanghi also said that June produced Microchip's strongest bookings in about four years, with book-to-bill well above 1 and higher backlog entering September.
Microchip Raises Data Center VisibilitySanghi said that total data center sales are expected to reach about $1 billion in calendar year 2026, up about 69% from $591 million in 2025. Data center represented 17.1% of June-quarter sales and grew 97.8% year over year.
Microchip had 14 PCIe Gen6 design wins, including 12 switch programs and two retimer programs. Sanghi said that Gen6 production began at the end of June and initial shipments were starting.
A BofA Securities analyst asked about two- to three-year growth and market share. Sanghi declined to forecast either, emphasizing Microchip's broad exposure across data center solutions and catalog products.
MCHP Guides to Another Sequential Step-UpSanghi guided September-quarter sales to rise 8% sequentially, plus or minus 1%, to $1.589 billion-$1.618 billion. Non-GAAP earnings are projected to be in the range of $0.91-$0.95 per share.
Sanghi said that non-GAAP gross margin should reach 66%-67%, with operating margin at 38.5%-39.5%, supported by mix, licensing, pricing, lower inventory write-offs and declining underutilization charges.
A BofA Securities analyst pressed on margin sustainability. Corporate senior vice president and CFO Eric Bjornholt said that licensing and a distribution-related pricing benefit are not recurring, while gross margin should remain around this range for at least the next few quarters.
Microchip Works Through External Supply TightnessSanghi said that lead times are stretching as constraints spread across substrates, foundry nodes, outsourced assembly and test. Requests for expedited shipments have also increased.
Wells Fargo and Susquehanna analysts pressed management on capacity. Sanghi said that internal fabs are not the constraint and Microchip is receiving incremental external allocation.
Bjornholt said that Microchip has no plan to build a 300-millimeter fab and will continue relying on foundry partners for those technologies.
MCHP Keeps Deleveraging Ahead of BuybacksA Wolfe Research analyst asked whether improving cash generation could change capital allocation. Sanghi said that cash beyond the current dividend will continue going toward debt, with no buybacks or dividend increase planned for now.
Bjornholt said that net debt was about $5.2 billion and net debt to adjusted EBITDA was 2.85 as of June 30, 2026. He expects the measure to fall below 2.5 in September.
Sanghi also ruled out large acquisitions, describing the planned Hailo transaction as a small technology deal that advances Microchip's edge-AI roadmap by about five years.
Microchip Stays Focused on Recovery ExecutionSteve Sanghi said December should perform better than Microchip's normal seasonal decline of 3%-5%. He added that the broad price increase will have a small September impact but a full-quarter effect in December.
Management's priorities are serving stronger demand amid external constraints, improving factory utilization, protecting margins and reducing debt. He kept the long-term gross-margin model unchanged rather than extending September's elevated level.
MCHP's Zacks Signals Favor Growth Over ValuePresently, MCHP carries a Zacks Rank #2 (Buy). Its Growth Score of B is favorable, while the Value Score of D is weaker and the Momentum Score of C and VGM Score of C are middle-tier readings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Style Scores run from A through F, with A and B the preferred grades, especially alongside a Rank #1 or #2. MCHP therefore combines a favorable rank and growth score with less supportive value and composite readings. The Zacks Rank can change as earnings estimates are revised after the reported results.
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.
Americké akciové indexy v závěru páteční seance ještě kosmeticky vylepšily svojí bilanci a uzavřely tak v kladném teritoriu. Nejlépe si vedl technologický Nasdaq se ziskem 1,3 %, širší index S&P500 pak přidal přes 0,6 % a uzavřel na novém historickém maximu. Tradiční index Dow Jones přidal 0,28 %. Dařilo se také dluhopisům napříč splatnostmi, stejně jako drahým kovům. Zlato přidalo 2,4 % na 4339 USD/oz, stříbro zpevnilo o 3,2 % na 63,44 USD/oz. Energie končily se smíšenou bilancí. Zatímco plyn končil se ziskem 1,3 % na 2,67 USD/mmbtu, ropa nakonec odepsala 0,4 % se závěrem u 77 USD/barel.
Závěrečné hodnoty:
Dow Jones +0,28 % na 54036,93 b.
S&P 500 +0,62 % na 7757,64 b.
Nasdaq Composite +1,3 % na 26690,62 b.
Index S&P 500 +0,62 % na 7757,64 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Základní materiály +1,5 % Energie -1,2 % Zbytná spotřeba +1,3 % Komunikační služby -0,3 % Informační technologie +1,3 % Finanční sektor -0,3 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Airbnb (ABNB) +17 % Trade Desk (TTD) -22 % Microchip Technology (MCHP) +14 % Akamai Technologies (AKAM) -6,8 % Coherent Corp (COHR) +13 % Zoetis (ZTS) -6,0 % Palantir Technologies (PLTR) +10 % ResMed (RMD) -5,1 % Moderna (MRNA) +9,9 % Seagate Technology Holdings (STX) -4,7 %
David Lamač
Fio banka, a.s.
Prohlášení
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%.
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The hottest new address in AI infrastructure isn’t in Northern Virginia or West Texas.
It’s a few hundred miles straight up.
Alongside its debut earnings report this week, SpaceX (SPCX) announced that it’s teaming up with Nvidia (NVDA) to design the compute payload for Starmind AI1 – the first satellite in a planned orbiting network built to run AI workloads in outer space.
Importantly, this isn’t a research payload or a proof-of-concept demo. Starmind AI1 is designed to run production AI workloads in orbit – on Nvidia’s top-of-the-line Vera CPUs, Rubin GPUs, and the Vera Rubin NVL72 rackscale system, the same architecture powering the most advanced AI data centers on Earth.
And on SpaceX’s Q2 earnings call, Elon Musk went out of his way to shut down the sci-fi talk before the bears could even start. He said the Starmind satellite “is not some sort of far future distant thing.” SpaceX expects to start launching next year.
Now, we don’t take Musk timelines at face value. The man’s deadlines are aspirational by design. He’s missed enough of them that “Elon time” is now a popular term on Wall Street. Pencil in delays.
But the timeline isn’t the story. The commitment is.
Because back in April, we published a deep dive making the case that AI was living through its “generator moment” – that the binding constraints on AI’s growth are land, power, and water, and that the next grid wouldn’t be built on the ground at all. It would be built in orbit.
At the time, that was a thesis.
Four months later, it’s become more of a procurement schedule.
How Space Data Centers Moved From Thesis to Roadmap Here’s what has happened since we published that first piece. Notice how the announcements keep moving down the stack, from filings to hardware to launch manifests:
In late April, Meta (META) signed a deal with Overview Energy to deliver a gigawatt of beamed power from space – Big Tech’s first purchase order for space-based energy. Blue Origin filed for its own constellation of 51,600 data center satellites. Alphabet‘s (GOOGL) Project Suncatcher – which pairs its custom TPUs with Planet Labs (PL) satellite hardware – completed radiation testing showing its chips can survive a five-year orbital mission, with two prototype satellites slated for early 2027. Starcloud, which trained the first language model in space last December on a single H100, launches Starcloud-2 in October with roughly 100 times the power generation and Nvidia’s newer architecture on board.
Then, in July, Intel (INTC) debuted Starfire: a radiation-hardened processor purpose-built for space computing, integrating CPU, graphics, neural, and image processing to let spacecraft run sophisticated AI workloads with less size, weight, and power. It’s expected to reach initial customers by year-end, designed for missions lasting more than a decade, and Intel has already signed partnership agreements with multiple government organizations. Notably, Intel Government Technologies’ Sean O’Neill framed the ambition as being partners, not just a component vendor.
Read that list again. Then ask yourself one question: do chipmakers build entire product lines for markets they don’t believe exist?
When both Nvidia and Intel – America’s most iconic chipmakers – are shipping silicon designed to survive radiation and vacuum , orbital compute has crossed the line from “thesis” to “roadmap.”
Why SpaceX’s Starmind AI1 Changes the Orbital Data Center Thesis Of everything that’s happened since April, the Starmind announcement is arguably the most important – and not for the reason you might think.
The headline is “data center in space.” The tell is buried in Musk’s commentary about the architecture.
SpaceX has decided to build exclusively on Nvidia’s Vera Rubin platform, and Musk says the optimized NVL72 design that flies on Starmind will be deployed on the ground as well as in orbit – because SpaceX views it as a radical simplification of the standard rack.
That means orbital compute is no longer being designed as some exotic, bespoke science project. It’s becoming a variant of the standard AI buildout – same chips, same racks, same software stack, different address. That’s how infrastructure transitions actually happen: not with a moonshot that replaces the old system, but with a standardized platform that can live in either environment and simply flows toward wherever power and cooling are cheapest.
And as we detailed in April, the direction of “cheapest” is not in dispute. Terrestrial compute costs are resource-bound – hostage to interconnection queues, water rights, and land scarcity – and they reliably rise. Orbital compute costs are technology-bound – hostage mainly to dollars-per-kilogram to orbit – and they reliably fall.
The Reality Check Let’s be equally clear-eyed about what hasn’t changed: the economics still favor Earth. Today, by a lot.
The most rigorous independent look at this question, from SemiAnalysis in early June, pegs orbital compute at more than 4x terrestrial cost right now – roughly $8.64 versus $2.37 per GPU-hour for a comparable cluster – driven by launch costs and the shorter useful life of hardware in orbit. Their base case sees the premium narrowing to about 30% by the early 2030s, with full cost parity arriving around 2040. Optimists argue specific workloads pencil out as soon as 2028-2030. Skeptics – including engineers at Varda Space Industries – counter that orbit still runs roughly 3x more per watt.
Our own April analysis put the crossover around 2038, potentially pulling forward to 2036 as competition compresses launch costs. We stand by that range. And frankly, the fact that serious analysts are now fighting over which year parity arrives – rather than whether it arrives – is perhaps the most bullish development of all. Wall Street doesn’t argue this hard over things it plans to ignore.
Just as important: the early market doesn’t need parity to form. Defense and space-based sensing programs need compute close to the sensor. Earth-observation workloads waste enormous downlink bandwidth shipping raw data to the ground. For those buyers, orbital compute is already the practical answer.
The Space Data Center Stocks Positioned to Benefit So, how do we position? Mostly, the same way we laid out in April – but this week’s news reshuffles the pecking order.
Nvidia just picked up something the bears never model: a brand-new source of demand that isn’t in anyone’s model. Every Starmind-class satellite is an NVL72 system sold into a market that didn’t exist a year ago. And SpaceX standardizing exclusively on Vera Rubin is one of the more underappreciated design wins of this cycle.
Intel is now on the board. We’re not ready to call Starfire a thesis-changer for a company with Intel’s broader challenges. But a space chip built to run for a decade-plus, with government partnerships already signed, is a real foothold in this market. Watch the customer announcements.
Microchip Technology (MCHP) remains the most underappreciated name in the stack. It’s the dominant supplier of the radiation-hardened FPGAs that virtually every satellite needs, growing space revenue roughly 40% a year with almost no one covering it as an orbital compute play.
Rocket Lab (RKLB) and Redwire (RDW) are the purest picks-and-shovels plays. Every orbital data center has to be launched. And every one of them is, functionally, a flying power plant – which is exactly Redwire’s lane, as the maker of the ROSA solar arrays already proven on the International Space Station. Both stocks were hammered in the recent space selloff. As we wrote after SpaceX’s Q2 report, their charts are starting to act like they want to come back.
Planet Labs gets a quiet upgrade, too. Every Suncatcher milestone Google hits makes PL’s seat at that table more valuable.
One Housekeeping Note In April, we recommended pre-IPO wrappers – the Tema Space Innovators ETF (NASA), DXYZ, XOVR – as the way to own SpaceX before it listed, with instructions to trim aggressively at the IPO. That trade has now played out. SpaceX trades under its own ticker. And with shares down as much as 32% from their post-IPO highs, investors finally get to buy the orbital compute flagship directly – at a discount to the euphoria, though with all the volatility and capex-driven turbulence we flagged in our earnings breakdown.
The Bottom Line: Orbital Compute Has Entered the Roadmap Phase Every infrastructure transition follows the same arc: dismissed as fantasy, debated as economics, and then suddenly discussed as logistics.
Orbital compute just entered phase three. The chips exist. The regulatory filings are in. Prototypes are being tested, the launch dates are on calendars, and the two biggest names in AI hardware are building for it in silicon.
Will Starmind launch on Musk’s schedule? Probably not. Will the economics flip next year? No – the honest math says the crossover is still years away.
But the market never waits for the crossover. It prices the trajectory.
And that’s exactly why I’ve been pounding the table on this moment.
Because everything we just walked through – the chips, the filings, the launch dates – is converging on what I believe is the single biggest wealth-creation setup of this cycle. I call it “XPANSE.”
It’s a project so enormous that Elon himself believes it could make early investors [1,000 times their money.
And the stakes go far beyond your portfolio. Right now, the entire AI economy rests on infrastructure that’s dangerously concentrated and dangerously constrained – a looming threat that one high-ranking government official has dubbed “an economic apocalypse.” XPANSE could be how America eliminates that threat before it detonates.
You don’t need to guess your way into this. In my new briefing, I lay out the three steps you must take today to get on the right side of this shift – and I give away the name and ticker of an investment perfectly positioned to capitalize on it, completely free.
The grid is going up whether you’re positioned or not. Which side of the trajectory will you be on?
Key Takeaways MPWR benefits from AI demand, cloud growth and expanding power solutions across multiple markets. MCHP is growing AI infrastructure offerings with Gen6 switches, retimers and data center products.MPWR and MCHP project solid revenue outlooks alongside strong long-term EPS growth potential. The artificial intelligence (AI)-driven marvelous bull story of U.S. stock markets for the past three and a half years is showing no sign of abatement. AI infrastructure stocks are flourishing on Wall Street with more vigor.
Here, we have identified Monolithic Power Systems Inc. (MPWR - Free Report) and Microchip Technology Inc. (MCHP - Free Report) — two AI infrastructure giants (market capital >$50 billion) with a top Zacks rank for investment. These stocks boast a strong short-term price upside. Moreover, they have a solid long-term (3-5 years) earnings per share (EPS) growth rate, which will ensure a long-term northbound journey.
The chart below shows the price performance of our two picks year to date.
Image Source: Zacks Investment Research
Monolithic Power Systems Inc.Monolithic Power Systems continues to benefit from rising demand for power management solutions tied to AI infrastructure and cloud computing deployments. MPWR also continues to broaden its addressable market through targeted technology acquisitions and product portfolio expansion.
Second-quarter 2026 Enterprise Data revenues increased 164.3% year over year and 44.8% sequentially due to higher sales for AI and server applications. Automotive remains a long-term growth driver as semiconductor content rises across ADAS, infotainment and connectivity applications. Beyond automotive, MPWR is broadening its exposure to robotics, building automation and portable AI devices.
MPWR highlighted that its monolithic power architecture enables single-piece silicon solutions versus multi-chip competitor approaches in AI and high-density applications. The company extended its capacity target significantly beyond $6 billion to support future growth and its transition from a chip supplier to a full solutions provider.
Currently, Monolithic Power Systems sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Strong OutlookMPWR projected third-quarter 2026 revenues within the range of $1,140 million to $1,160 million. GAAP gross margin in the range of 55.2% to 55.8% and Non-GAAP gross margin in the range of 55.4% to 56.0%.
Solid Long-Term EPS Growth Rate Monolithic Power Systems has an expected revenue and earnings growth rate of 46.4% and 52.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 12.1% over the last seven days.
MPWR has an expected revenue and earnings growth rate of 26.3% and 28.1%, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 16.3% over the last seven days.
MPWR currently has a long-term EPS growth rate of 28%, well above the S&P 500’s long-term EPS growth rate of 18.2%.
Image Source: Zacks Investment Research
Reasonable ValuationDespite an impressive northward journey this year, the MPWR stock still looks reasonably priced. It trades at a forward 12-month price-to-earnings (P/E) multiple of 49.62X, compared with the industry average of 38.70X.
Excellent Short-Term Price UpsideThe short-term average price target of brokerage firms represents an increase of 35.7% from the last closing price of $1,359.08. The brokerage target price is currently in the range of $1,575-$2,100. This indicates a maximum upside of 54.5% and no downside.
Microchip Technology Inc.Zacks Rank #2 (Buy) 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. MCHP also entered the PCIe retimer market in the June 2026 quarter as a companion device for Gen6 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 in the long term.
Strong OutlookMCHP projected second-quarter fiscal 2027 revenues within the range of $1.589-$1.618 billion. Adjusted EPS is projected in the range of $0.91-$0.95. Operating income will be in the range of 38.5-39.5%.
Solid Long-Term EPS Growth Rate Microchip Technology has an expected revenue and earnings growth rate of 32.3% and 91.5%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1.6% over the last 30 days.
MCHP has an expected revenue and earnings growth rate of 18.2% and 27.9%, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1% over the last 30 days.
MCHP currently has a long-term EPS growth rate of 36.8%, well above the S&P 500’s long-term EPS growth rate of 18.2%.
Image Source: Zacks Investment Research
Attractive ValuationMCHP is currently trading at an attractive valuation compared to its peers. The stock has forward price/earnings (P/E) of 24.80X, below the industry’s P/E of 38. It has a price/sale (P/S) of 8.96X, compared with the industry’s P/S of 9.66X. Moreover, it has a price/book (P/B) of 6.54X, lower than the industry’s P/B of 6.55X.
Robust Short-Term Price UpsideThe short-term average price target of brokerage firms represents an increase of 54.3% from the last closing price of $74.36. The brokerage target price is currently in the range of $88-$135. This indicates a maximum upside of 81.5% and no downside.
Net Sales: $1.485 billion in the June quarter, up 13.2% sequentially and up 38% year-over-year.Non-GAAP Gross Margin: 63.8%, including $38.5 million in capacity
AI Is Reviving an Overlooked Chip Category—and These 3 Names Are Riding the Demand WaveMicrochip Technology NASDAQ: MCHP reported fiscal first-quarter results that exceeded its prior guidance, as the semiconductor company cited strong demand across data centers, aerospace and defense, industrial and automotive markets. Management also raised its disclosure around data-center exposure and forecast continued growth for the September quarter.
For the June quarter, Microchip reported net sales of $1.485 billion, up 13.2% sequentially and 38% from the year-earlier period. On a non-GAAP basis, gross margin was 63.8%, operating margin was 35.1%, and diluted earnings per share were $0.76. CFO Eric Bjornholt said EPS was $0.07 above the midpoint of the company’s previous guidance.
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Microchip Technology Says the Slump Is Ending—The Stock Is Starting to AgreeOn a GAAP basis, Microchip posted net income attributable to common shareholders of $202 million, or $0.37 per share. GAAP gross margin was 63.2%. The company recorded $18.9 million in special charges, primarily related to the settlement of two longstanding legal matters and activities associated with the closure of Fab 2.
Data-Center Exposure Reaches $1 Billion Forecast CEO Steve Sanghi provided a more detailed view of Microchip’s data-center business, which includes products sold through its Data Center Solutions business unit as well as catalog products from other business units.
Why These 3 Automotive & Industrial Chip Stocks Just SoaredMicrochip estimated calendar 2025 data-center revenue at approximately $591 million, or about 14% of company sales. That total consisted of $302.7 million from the Data Center Solutions unit and roughly $288 million from other products, including power-management analog products, microcontrollers, digital signal controllers, security products, FPGAs, timing products and Serial Quad I/O memory products.
For calendar 2026, the company expects total data-center sales of about $1 billion, representing growth of approximately 69% from 2025. Microchip expects both its Data Center Solutions unit and its broader catalog-product portfolio to contribute about $500 million each.
Data-center revenue rose 77.2% year over year in the March quarter and 97.8% in the June quarter. Sanghi said the company expects “significant growth” in 2027 and beyond as design wins for PCIe Gen 6 switches and retimers, storage controllers, nonvolatile-memory controllers, power-management products, security products, timing products and memory products move into production.
Microchip said it had 14 identified PCIe Gen 6 design wins as of the call, including 12 switch wins and two retimer wins. Sanghi noted that the company’s wider catalog exposure comprises hundreds of designs through suppliers of power systems, modules and other components, making it more difficult to quantify individual design wins across the full data-center portfolio.
End-Market Growth Broadens Microchip began reporting data-center and compute revenue as separate end markets. Based on management’s estimates for the June quarter, industrial represented 32.2% of sales, followed by data centers at 17.1%, aerospace and defense at 16.7%, automotive at 15%, communications at 8.2%, consumer appliances at 7.4% and compute at 3.4%.
Year-over-year growth in the June quarter was led by data centers, up 97.8%. Communications increased 53.3%, aerospace and defense rose 45.6%, automotive increased 29.3%, industrial grew 24.3%, consumer appliances increased 19.1%, and compute rose 9.6%.
Sanghi said the company sees several factors that could extend the current recovery. He pointed to data-center demand, an emerging multiyear aerospace-and-defense buildup, and later-stage recoveries in industrial and automotive markets. However, he cautioned against extrapolating recent growth percentages, noting that comparisons are against depressed levels from the prior year.
In aerospace and defense, Sanghi said Microchip is seeing orders tied to missiles, drones, radar systems, interceptors, battle tanks and ammunition. He described current demand as the “front end” of a broader expected production ramp, though he said customers still need to provide more specific orders for the company to assess required component capacity.
September-Quarter Outlook Calls for Further Growth For the fiscal second quarter ending in September, Microchip forecast sequential net-sales growth of 8%, plus or minus 1%. At the midpoint, that outlook would represent 40.6% year-over-year growth.
Non-GAAP gross margin: 66% to 67% of sales Non-GAAP operating expenses: about 27.5% of sales Non-GAAP operating margin: 38.5% to 39.5% of sales Non-GAAP diluted EPS: $0.91 to $0.95 The midpoint of the EPS outlook implies sequential growth of 22.4% and year-over-year growth of 165.7%, according to the company.
Management attributed the projected gross-margin expansion to product mix, including an expected strong licensing quarter, recently implemented pricing actions, lower inventory write-offs and reduced factory underutilization charges. Sanghi and Bjornholt cautioned that certain factors are not recurring, including the licensing contribution and a benefit related to inventory in distribution channels. They said investors should not expect gross margin to move materially above the guided 66.5% midpoint, although the company expects to remain around that range for at least the next few quarters.
Inventory Improves, While Supply Constraints Persist Microchip ended the June quarter with $1.047 billion of inventory, or 175 days, down 10 days from the March quarter. Distributor inventory was 25 days, down one day sequentially and near the low end of historical levels. Sanghi said the company believes the distribution inventory correction has been completed, with distributors now expected to require some replenishment.
Distribution sell-through increased 17% sequentially in the June quarter. Management said bookings were strong, with a book-to-bill ratio well above one and the strongest booking quarter in about four years.
At the same time, the company said lead times are extending for many products as die and finished-goods inventories decline. Sanghi cited constraints involving certain substrates, foundry capacity across multiple manufacturing nodes, subcontracted assembly and test capacity. He emphasized that these constraints do not cap revenue growth, as capacity allocations are increasing and Microchip has available internal manufacturing capacity.
The company does not plan to build its own 300mm fabrication facility, according to management. Instead, it expects to rely on foundry partners for 12-inch wafer technologies.
Microchip generated $511.5 million of operating cash flow and $478.6 million of adjusted free cash flow in the June quarter. Net debt declined by $170 million to about $5.2 billion, while net debt to adjusted EBITDA fell to 2.85. Management said it expects the leverage ratio to fall below 2.5 in the September quarter and intends to prioritize debt repayment over stock repurchases, dividend increases or large acquisitions for the foreseeable future.
The company also said its December quarter should perform better than its typical seasonal decline of 3% to 5%, though management did not provide a quantitative forecast for that period.
About Microchip Technology (NASDAQ:MCHP)Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.
Microchip's products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.
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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.
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
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.
Advancing data center performance is not solved by a single component, we're bringing together complementary strengths to enable next generation platforms
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
CHANDLER, Ariz., July 24, 2026 (GLOBE NEWSWIRE) -- (NASDAQ: MCHP) - Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today announced that it has signed 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 transaction is expected to close towards the end of the current quarter ending September 30, subject to customary closing conditions and regulatory approvals. The terms of the transaction are not being disclosed and the transaction is not expected to have a material impact on Microchip's financial results.
California Public Employees Retirement System cut its holdings in shares of Microchip Technology Incorporated (NASDAQ:MCHP – Free Report) by 2.3% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,280,223 shares of the semiconductor company’s stock after selling 30,775 shares during the quarter. California Public Employees Retirement System owned about 0.24% of Microchip Technology worth $82,715,000 as of its most recent filing with the Securities and Exchange Commission.
Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. EFG International AG purchased a new stake in shares of Microchip Technology during the 4th quarter valued at $29,000. Miller Capital Partners Inc. acquired a new stake in Microchip Technology in the 4th quarter valued at $29,000. Reflection Asset Management purchased a new position in Microchip Technology in the fourth quarter valued at about $33,000. Garton & Associates Financial Advisors LLC acquired a new position in shares of Microchip Technology during the fourth quarter worth about $33,000. Finally, Caitong International Asset Management Co. Ltd boosted its position in shares of Microchip Technology by 4,663.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company’s stock worth $33,000 after buying an additional 513 shares during the period. Hedge funds and other institutional investors own 91.51% of the company’s stock.
Key Stories Impacting Microchip Technology Here are the key news stories impacting Microchip Technology this week:
Positive Sentiment: KeyCorp raised long-term earnings expectations for Microchip Technology, forecasting FY2027 EPS of $3.00 and FY2028 EPS of $3.83, both above current consensus. This points to improving fundamentals and supports a more constructive outlook for NASDAQ:MCHP. Positive Sentiment: Recent coverage highlighted Microchip’s strong earnings surprise history and the potential to beat estimates again, reinforcing investor confidence ahead of the next report. Positive Sentiment: Another bullish note pointed to Microchip’s 35.3% year-to-date gain being driven by inventory recovery, stronger bookings, and AI data center demand, all of which may continue to support the stock. Neutral Sentiment: KeyCorp also provided quarterly estimates for FY2027 and FY2028 periods, but these updates were primarily forecast revisions rather than new company guidance or a major business announcement. Analyst Upgrades and Downgrades Several equities research analysts have issued reports on the company. Cantor Fitzgerald restated an “overweight” rating and set a $125.00 price objective on shares of Microchip Technology in a report on Wednesday, May 13th. JPMorgan Chase & Co. lifted their target price on Microchip Technology from $95.00 to $120.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Susquehanna raised their price objective on Microchip Technology from $95.00 to $120.00 and gave the stock a “positive” rating in a research note on Friday, May 8th. Zacks Research raised shares of Microchip Technology from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 12th. Finally, Barclays boosted their price objective on shares of Microchip Technology from $80.00 to $105.00 and gave the company an “equal weight” rating in a research report on Monday, May 11th. Four analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $100.10.
Read Our Latest Research Report on MCHP
Microchip Technology Price Performance MCHP stock opened at $80.96 on Monday. The firm’s 50-day moving average is $92.15 and its two-hundred day moving average is $80.59. The company has a market capitalization of $43.96 billion, a price-to-earnings ratio of 385.54, a price-to-earnings-growth ratio of 0.82 and a beta of 1.74. Microchip Technology Incorporated has a 52 week low of $48.52 and a 52 week high of $105.91. The company has a current ratio of 2.09, a quick ratio of 1.18 and a debt-to-equity ratio of 0.85.
Microchip Technology (NASDAQ:MCHP – Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.07. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The business had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same period last year, the firm posted $0.11 earnings per share. The business’s revenue was up 35.1% on a year-over-year basis. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, analysts forecast that Microchip Technology Incorporated will post 2.69 earnings per share for the current fiscal year.
Microchip Technology Announces Dividend The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Friday, May 22nd were issued a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Friday, May 22nd. Microchip Technology’s payout ratio is presently 866.67%.
Insider Buying and Selling at Microchip Technology In related news, COO Richard J. Simoncic sold 5,000 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total transaction of $487,600.00. Following the completion of the sale, the chief operating officer directly owned 130,508 shares of the company’s stock, valued at $12,727,140.16. This represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO James Eric Bjornholt sold 3,667 shares of Microchip Technology stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $90.87, for a total transaction of $333,220.29. Following the completion of the transaction, the chief financial officer owned 28,573 shares in the company, valued at approximately $2,596,428.51. This trade represents a 11.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 553,302 shares of company stock valued at $49,673,635 in the last ninety days. Company insiders own 1.79% of the company’s stock.
Microchip Technology Profile (Free Report)
Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.
Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.
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July 17 (Reuters) - South Korean authorities have conducted an on-site search and seizure at the local office of Montage Technology (688008.SS), opens new tab, in connection with a potential competition law violation, the Chinese chipmaker said in an exchange filing.
In the filing on Thursday, Montage said it has been fully cooperating with the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office and that none of its directors or employees have been charged with wrongdoing by any government authority so far.
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South Korea accounted for 2.93 billion yuan ($432.63 million) of Montage's sales in fiscal 2025, representing more than half of its group revenue, according to the filing.
Founded in 2004, the company is the biggest memory interconnect chip supplier globally, with a 36.8% market share by revenue in 2024, according to its prospectus, which cited consultancy and research firm Frost & Sullivan.
The chipmaker's shares surged 64% in their Hong Kong trading debut earlier this year after it raised HK$7.04 billion ($897.99 million) in a share sale primarily to fund research.
Montage's Hong Kong-listed stock slumped 23% to close at HK$278.6 on Thursday, while its shares in Shanghai slid 16.4%.
($1 = 6.7726 Chinese yuan)
($1 = 7.8397 Hong Kong dollars)
Reporting by Nikita Maria Jino in Bengaluru; Editing by Sherry Jacob-Phillips
Our Standards: The Thomson Reuters Trust Principles., opens new tab
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.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Microchip Technology (MCHP - Free Report) , which belongs to the Zacks Semiconductor - Analog and Mixed industry, could be a great candidate to consider.
This chipmaker has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.16%.
For the last reported quarter, Microchip Tech came out with earnings of $0.57 per share versus the Zacks Consensus Estimate of $0.5 per share, representing a surprise of 14.00%. For the previous quarter, the company was expected to post earnings of $0.43 per share and it actually produced earnings of $0.44 per share, delivering a surprise of 2.33%.
Price and EPS Surprise
For Microchip Tech, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Microchip Tech has an Earnings ESP of +2.16% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Microchip Technology?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Microchip Technology (MCHP - Free Report) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $0.71 a share, just 21 days from its upcoming earnings release on August 6, 2026.
MCHP has an Earnings ESP figure of +2.16%, which, as explained above, is calculated by taking the percentage difference between the $0.71 Most Accurate Estimate and the Zacks Consensus Estimate of $0.7. Microchip Technology is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
MCHP is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Western Digital (WDC - Free Report) .
Western Digital, which is readying to report earnings on August 5, 2026, sits at a Zacks Rank #1 (Strong Buy) right now. Its Most Accurate Estimate is currently $3.43 a share, and WDC is 20 days out from its next earnings report.
Western Digital's Earnings ESP figure currently stands at +2.61% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $3.34.
MCHP and WDC's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
CHANDLER, Ariz., July 16, 2026 (GLOBE NEWSWIRE) -- As industrial environments become more automated and connected, demand for Power over Ethernet is rising to enable industrial applications by delivering reliable power and data over a single cable, simplifying deployment and scalability. To offer an industrial-grade solution, Microchip Technology (Nasdaq: MCHP) has extended its broad range of single- and multi-port PoE solutions to include its PD-9601GCI Midspan, designed to meet the IEEE 802.3bt standard for industrial applications and their challenging environments.
“In a market where many existing networks don’t fully support PoE’s convenient single-cable deployment models, our industrial-grade PD-9601GCI midspan makes it easier for our customers to power their smart equipment in factories and industrial settings,” said Charlie Forni, corporate vice president of Microchip’s networking and connectivity business unit. “Additionally, our customers have the option to use our midspans as a private label powering option, enabling them to differentiate their products by offering a simpler integrated power solution.”
Microchip’s PD-9601GCI midspan stands out from its existing PC-9601GC single-port indoor PoE midspan because it’s industrial-grade and is designed to reduce the need for complex electrical work and additional power outlets, while delivering up to 90W of power and 10/100/1000 Mbps data rates over a single Ethernet cable.
The device offers features and capabilities that support reliable operation in remote or challenging factory and outdoor locations, minimizing downtime and support issues:
Sealed, vibration-resistant metal enclosure that is Ingress Protection (IP)-rated: The IP rating is IP30.Extended operating temperature: Designed to sustain a temperature range of -40°C to 75°C.Extended power input options: Supports dual DC input in the range of 20V-60V.Enhanced industrial-grade surge protection: Helps protect against voltage spikes in industrial environments.Industrial mounting: Includes DIN rail, wall or panel mount options.Compatibility testing with industrial automation devices: Helps reduce integration and reliability issues for manufacturers. Midspans are inserted after the network switch where they inject power onto an Ethernet line so it can deliver both power and data. These devices provide a convenient and cost-effective solution to deploy PoE in remote or challenging environments. Bundled with an IoT device, midspans enable manufacturers to offer a plug-and-play solution designed to support power delivery over the network.
With over 25 years of experience in PoE technology, Microchip helped standardize the IEEE® 802.3af/at/bt standards. Microchip offers an extensive portfolio of PoE PSE chipsets, PD chipsets and PoE systems to meet the diverse needs of its customers. For more information about the company’s PoE solutions, visit its website.
Pricing and Availability
The PD-9601GCI midspan is available in production quantities. You can purchase directly from Microchip or 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: www.flickr.com/photos/microchiptechnology/55323190197/sizes/l
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 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.
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.
CHANDLER, Ariz., July 08, 2026 (GLOBE NEWSWIRE) -- Microchip Technology (Nasdaq: MCHP) has announced that its MPLAB® XC Pro Compilers and MPLAB Machine Learning (ML) Development Suite are now available at no cost to customers. By enabling unlimited installs across individual and team environments, these tools give developers free access to advanced optimization capabilities and integrated embedded machine learning workflows.
“Our focus is on optimizing the development experience for engineers using Microchip devices,” said Greg Robinson, corporate vice president of Microchip’s development tools, MCU and wireless business units. “By eliminating license fees and providing high-performance tools at no cost, we’re removing barriers to innovation. Customers can now take advantage of our optimized compilers and integrated machine learning capabilities to move efficiently from design through deployment.”
Previously available through paid license tiers, the MPLAB XC Pro Compilers apply high-level techniques to reduce code size, lower the memory footprint, improve execution speed and generate highly efficient, architecture‑optimized code for embedded applications. These professional-grade capabilities enable developers to streamline embedded design across Microchip’s 8-, 16- and 32-bit microcontroller (MCU) and microprocessor (MPU) portfolio.
The MPLAB Machine Learning Development Suite Model Builder, an MPLAB or Microsoft® Visual Studio® Code (VS Code®) plug-in used to generate optimized AI and IoT sensor recognition code, is also available at no cost. This allows developers to build and deploy end-to-end embedded machine learning solutions and helps enable efficient deployment of edge intelligence on resource‑constrained devices. By offering MPLAB ML in VS Code, Microchip is furthering its commitment to meeting developers in their environment of choice, providing a more flexible and easier‑to‑use development experience.
The shift to offer free development tools extends to Microchip’s MPLAB XC Functional Safety Compilers. TÜV SÜD‑certified, these compilers support safety‑critical applications and help enable compliance with industry functional safety standards, with certification documentation and support available for purchase when needed. With the free download, developers can now begin safety-oriented design without upfront license costs and fees applied only when certification is required.
Updates and priority technical support for compiler-related queries are included at no additional cost. Visit the website for more information about Microchip’s full suite of VS Code extensions.
Pricing and Availability
MPLAB XC Compilers and the MPLAB Machine Learning Development Suite are available at no cost. For more information, 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/L08dD49mKm
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 and MPLAB 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.
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.
Key Takeaways S&P 500, Nasdaq and Dow posted their strongest Q2 performances in years amid broad market gains.MU, WDC, MCHP, CRDO and STRL are highlighted as momentum picks for Q3 2026.AI infrastructure demand across memory, storage, connectivity and data centers support these stocks. U.S. stock markets closed an impressive second-quarter 2026. The S&P 500 and the Nasdaq Composite rallied 14.9% and 21.4% respectively, to post their best second-quarter performance since 2020. The Dow advanced 12.9%, marking its strongest quarter since the fourth quarter of 2022.
Momentum Likely to Continue in Q3AI trade is gathering steam as days progress. AI infrastructure trade is now expanding from chips to memory and storage devices as well as servers and racks. Moreover, agentic AI is expanding the scope of AI infrastructure providers in the physical layer.
Massive AI data center growth is benefiting several nuclear power generator and reactor makers, construction giants, cooling and water purifying companies and industrial manufacturers.
On May 28, the U.S. government entered into a "memorandum of understanding" with Iran to extend the ceasefire for 60 days and continue negotiations on the latter’s nuclear program. The negotiations include the reopening of the Strait of Hormuz with Iran removing its mines within 30 days and the United States gradually lifting the naval blockade.
At this stage, we recommend five stocks with a favorable Zacks Rank that are expected to maintain their momentum in the third quarter, too. These are: Micron Technology Inc. (MU - Free Report) , Western Digital Corp. (WDC - Free Report) , Microchip Technology Inc. (MCHP - Free Report) , Credo Technology Group Holding Ltd. (CRDO - Free Report) and Sterling Infrastructure Inc. (STRL - Free Report) .
Each of the stocks sports a Zacks Rank #1 (Strong Buy) at present and has a Zacks Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Micron Technology Inc.Micron has been benefiting tremendously from the enormous application of AI in day-to-day life, which has pushed up the demand for memory chips. The four major hyperscalers raised their AI capital expenditure budget to $750 billion for 2026. This figure is set to cross $1 trillion next year and is likely to rise further beyond 2027.
This has resulted in more AI semiconductor sales implying the need for multiple AI memory chips to operate. Flash memory technologies like DRAM and NAND are used in AI chips, enabling them to perform optimally.
This has pushed up the demand for AI-enabled memory chips. In their last earnings reports, all four major hyperscalers highlighted a shortage of memory and storage chips, resulting in soaring prices of these products. As a result, MU benefits significantly.
Micron has meaningful exposure to AI, cloud data centers, industrial IoT and autonomous vehicles, all of which require increasingly advanced memory solutions. As AI adoption accelerates, demand for DRAM and NAND products continues to rise.
MU has invested heavily in next-generation memory technologies, positioning itself to meet the growing performance and efficiency requirements of AI systems. A particularly important growth driver is high-bandwidth memory (“HBM”), which has become essential for advanced AI workloads. Micron Technology’s HBM3E and HBM4 products are seeing exceptionally strong demand because they offer the speed and efficiency required by modern AI systems.
MU’s position in the AI ecosystem continues to strengthen. NVIDIA identified Micron as a key HBM supplier for its GeForce RTX 50 Blackwell GPUs, reinforcing its importance within the AI supply chain. Demand for HBM4 is also benefiting from next-generation AI infrastructure deployments, including NVIDIA’s Vera Rubin platform.
Micron has an expected revenue and earnings growth rate of more than 100% each, for the current year (ending August 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 16.3% in the last seven days.
Western Digital Corp.Western Digital has been witnessing strong execution amid intensified cloud and AI demand. WDC saw strong data center demand and increased adoption of high-capacity hard disk drives. This reflects its ability to scale reliable, high-capacity storage solutions to meet the needs of the AI-driven data economy.
As AI and cloud adoption accelerate, demand for higher-density storage continues to rise. WDC is meeting this demand through close collaboration with hyperscalers, delivering reliable, high-capacity drives at scale with strong performance and total cost of ownership.
Western Digital has an expected revenue and earnings growth rate of 38.1% and 82.3%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 6.6% over the last 30 days.
Microchip Technology Inc.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 Gen6 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 in the long term.
Microchip Technology has an expected revenue and earnings growth rate of 31.7% and 88.4%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% in the last 30 days.
Credo Technology Group Holding Ltd.Credo Technology is a provider of high-performance serial connectivity solutions for the hyperscale datacenter, 5G carrier, enterprise networking, artificial intelligence and high-performance computing markets.
CRDO’s outlook is supported by widening AEC adoption, rising hyperscaler and Neo cloud traction, and a larger optical portfolio that now includes silicon photonics PIC technology following the DustPhotonics acquisition. AECs remain the primary growth engine as they play an increasingly critical role in AI-driven networking deployments.
ZF Optics is moving from initial ramp to a broader fiscal 2027 revenue contributor. The acquisition of Dust Photonics strengthens CRDO’s high-speed optical connectivity portfolio with silicon photonics PIC technology.
The deal adds advanced technology, including 800G and 1.6T solutions, and would aid in developing upcoming 3.2T solutions. CRDO projects more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million in fiscal 2027.
Credo Technology has an expected revenue and earnings growth rate of 75.8% and 72.8%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 17.5% in the last 30 days.
Sterling Infrastructure Inc.Zacks Rank #1 Sterling Infrastructure specializes in constructing complex data centers, e-commerce distribution facilities, and manufacturing sites. The company is a major provider of high-density, AI-Powered data centers. STRL is a notable beneficiary of the massive AI data center boom.
E-Infrastructure Solutions projects develop advanced, large-scale site development systems and services for data centers, e-commerce distribution centers, warehousing, transportation, energy and more.
Sterling’s combined offering of site development and electrical services is gaining traction faster than expected. STRL highlighted that in the first quarter of 2026, two data center campuses moved to integrated execution six to eight months earlier than planned, validating cross-sell traction and schedule compression benefits.
STRL’s complementary investments — AI tools that increased project manager capacity by about 15% and a modular manufacturing program that will triple capacity within nearly 18 months — reduce field labor intensity and enhance quality/efficiency.
Sterling Infrastructure has an expected revenue and earnings growth rate of 59.2% and 75.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.1% over the last 30 days.
Key Takeaways MCHP is seeing strong demand from aerospace and defense, which accounted for 16% of fiscal 2026 sales.Microchip Technology's PolarFire FPGA families continue to see solid demand in mission-critical applications.MCHP expects fiscal Q1 2027 net sales to increase 11% sequentially, plus or minus 1%. Microchip Technology (MCHP - Free Report) shares have gained 39.7% in the year-to-date period, outperforming the broader Zacks Computer and Technology sector’s return of 12.8%. The outperformance is being driven by improving demand trends across its end markets and growing exposure to data center, artificial intelligence (AI), aerospace, and defense markets.
The company is benefiting from robust demand in the aerospace and defense (A&D) sector, which has emerged as one of the company’s strongest end markets in recent quarters. In fiscal 2026, the A&D segment accounted for 16% of total sales, making it one of the company’s key revenue contributors.
A key factor behind Microchip Technology’s success in A&D is its portfolio of high-reliability products, such as Field Programmable Gate Arrays (FPGAs), which are widely used in mission-critical aerospace and defense applications. The company’s PolarFire and PolarFire 2 FPGA families are recognized for their reliability and high performance, with demand remaining strong across both A&D and other end markets.
MCHP Benefits From Aerospace & Defense DemandMicrochip Technology’s expansion of its high-reliability semiconductor portfolio remains a key growth factor. The company continues to strengthen its presence across AI, data center, aerospace, and defense markets through innovations spanning FPGAs, microprocessors, connectivity solutions and timing devices.
Building on this momentum, Microchip Technology recently introduced the DSA504RT, a radiation-tolerant, six-output programmable clock generator designed for aerospace and defense applications. The new device streamlines spacecraft timing architectures by generating multiple precise frequencies from a single master source, reducing component count, power consumption, and system complexity.
The DSA504RT delivers ultra-low jitter performance and enhances reliability in harsh space environments. The new offering strengthens Microchip Technology's space-grade semiconductor portfolio and is expected to support growing demand for high-reliability timing solutions, supporting the company's long-term growth prospects.
For the first quarter of fiscal 2027, Microchip guided net sales to $1.442-$1.469 billion. The company expects non-GAAP EPS in the range of $0.67-$0.71, supported by continued recovery across its end markets.
The Zacks Consensus Estimate for first-quarter fiscal 2027 revenues is pegged at $1.45 billion, indicating year-over-year growth of 35.17%.
The consensus mark for earnings is pegged at 59 cents per share, which has remained unchanged over the past 30 days. The figure implies year-over-year growth of 246.08%.
MCHP’s Zacks Rank & Other Stocks to ConsiderCurrently, Microchip Technology sports a Zacks Rank #1 (Strong Buy).
Digital Turbine (APPS - Free Report) , Dell Technologies (DELL - Free Report) and Flex (FLEX - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Digital Turbine, Dell Technologies and Flex sport a Zacks Rank #1 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
APPS shares have rallied 158.2% in the year-to-date period. The long-term earnings growth rate for Digital Turbine is pegged at 18.98%.
DELL shares have surged 229.3% in the year-to-date period. The long-term earnings growth rate for Dell Technologies is pegged at 26.35%.
Shares of FLEX have gained 164.1% in the year-to-date period. The long-term earnings growth rate for Flex is pegged at 45.76%.
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.
CHANDLER, Ariz., June 25, 2026 (GLOBE NEWSWIRE) -- Spacecraft timing systems must provide highly stable, precise signals for navigation, communications and scientific instruments, even when GNSS signals are weak or unavailable. Designers often rely on multiple oscillators and buffers to supply precise frequencies to various subsystems, adding size, mass and complexity. Microchip Technology (Nasdaq: MCHP) announces the space-grade DSA504RT, a radiation-tolerant, six-output programmable clock generator designed to address the complex timing needs of aerospace and defense applications.
The DSA504RT streamlines timing architecture by generating multiple clean, phase-aligned frequencies from a single master source. Additionally, this solution reduces the need for multiple discrete oscillators, lowers overall component count and improves system failure in time (FIT) rate. It also reduces power consumption and mass, as well as simplify distribution networks to keep all subsystems synchronized even in the harshest environments and during GNSS outages or disruptions.
Equipped with an Analog Phase-Locked Loop (APLL) featuring spread spectrum capability, two fractional and two integer dividers, and six highly configurable output buffers, each of which can be configured as a differential driver (LVPECL, LVDS or HCSL) or as a pair of single-ended CMOS outputs, the DSA504RT delivers ultra-low jitter performance as low as 200 femtoseconds (12kHz–20MHz) and is compliant with PCIe® Gen 1-7 standards. This level of integration allows engineers to replace multiple crystals, oscillators and buffers with a single device, improving design reliability, reducing Bill of Materials cost and design complexity.
“This Microchip clock generation device is a game changer for space applications. It can offer a comprehensive clock tree solution, producing three different clock families and up to six different frequencies, each buffered on a variety of selectable output drive types,” said Maamoun Abou Seido, appointed vice president of Microchip’s timing communications group. “Replacing numerous oscillators, buffers and synthesizers, the DSA504RT saves board space and reduces part count to improve the system Failures in Time (FIT) rate in these high reliability applications.”
The DSA504RT, offered in QFN28 and CQFP32 packages, serves as a companion device for complex aerospace and defense systems. It enables high integration of clock architectures within a single chip, distributing precise timing references to subsystems built around radiation-tolerant or radiation-hardened FPGAs and MCUs.
By introducing a cost-efficient, space-grade part within Microchip’s proven clock family, the DSA504RT delivers premium timing performance at a lower overall Bill of Materials (BOM) and screening expense. Customers can stay entirely within Microchip’s proven radiation-qualified ecosystem, leveraging its space heritage, documentation and global technical support, to accelerate the design process and reduce program risk. To learn more about Microchip’s space-grade solutions, visit its website.
Pricing and Availability
The DSA504RT is available in limited sampling upon request. For additional information, contact a Microchip sales representative.
Resources
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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 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.
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.
From a technical perspective, Microchip Technology (MCHP - Free Report) is looking like an interesting pick, as it just reached a key level of support. MCHP recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Over the past four weeks, MCHP has gained 9.5%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.
The bullish case solidifies once investors consider MCHP's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 8 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on MCHP for more gains in the near future.
Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Has Microchip Technology (MCHP - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Microchip Technology is one of 592 companies in the Computer and Technology group. The Computer and Technology group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Microchip Technology is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for MCHP's full-year earnings has moved 23.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that MCHP has returned about 56.6% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 20% on average. This means that Microchip Technology is outperforming the sector as a whole this year.
One other Computer and Technology stock that has outperformed the sector so far this year is Advanced Energy Industries (AEIS - Free Report) . The stock is up 78% year-to-date.
The consensus estimate for Advanced Energy Industries' current year EPS has increased 9.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Microchip Technology belongs to the Semiconductor - Analog and Mixed industry, a group that includes 10 individual stocks and currently sits at #5 in the Zacks Industry Rank. On average, this group has gained an average of 69.7% so far this year, meaning that MCHP is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, Advanced Energy Industries belongs to the Semiconductor Equipment - Wafer Fabrication industry. This 2-stock industry is currently ranked #27. The industry has moved +80.2% year to date.
Microchip Technology and Advanced Energy Industries could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Microchip Technology (MCHP - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Microchip Technology currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if MCHP is a promising momentum pick, let's examine some Momentum Style elements to see if this chipmaker holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For MCHP, shares are up 7.81% over the past week while the Zacks Semiconductor - Analog and Mixed industry is up 4.23% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9.51% compares favorably with the industry's 3.76% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Microchip Technology have increased 55.4% over the past quarter, and have gained 46.68% in the last year. In comparison, the S&P 500 has only moved 13.47% and 26.67%, respectively.
Investors should also pay attention to MCHP's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. MCHP is currently averaging 11,578,530 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with MCHP.
Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost MCHP's consensus estimate, increasing from $2.57 to $3.03 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that MCHP is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Microchip Technology on your short list.
