With a market cap of $28.7 billion, Chandler, Arizona-based Microchip Technology Incorporated (MCHP) is a leading provider of smart, connected, and secure embedded control solutions, serving markets across the Americas, Europe, and Asia. It develops and manufactures microcontrollers, analog and interface products, and memory solutions for embedded systems.
Companies worth more than $10 billion are generally labeled as “large-cap” stocks, and Microchip Technology fits this criterion perfectly. Its diverse product portfolio includes 8-bit, 16-bit, and 32-bit microcontrollers, mixed-signal processors, field-programmable gate arrays (FPGAs), and power management solutions. The company serves industries like automotive, industrial, computing, and communications.
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Despite experiencing a 47% decline from its 52-week high of $100.57, the chipmaker has seen its shares decline 13.4% over the past three months. This decline is less severe than the SPDR S&P Semiconductor ETF (XSD), which dropped 18.6% during the same period.
In the longer term, MCHP’s shares have decreased 7.1% on a YTD basis, outperforming XSD’s 14.8% decline. However, over the past 52 weeks, Microchip Technology has dipped 41.2%, lagging behind XSD’s 8.6% drop over the same period.
Despite a few fluctuations, MCHP has traded below both its 50-day and 200-day moving averages since last year, suggesting a bearish price trend.
Microchip Technology shares fell 2.3% following its Q3 2025 earnings release on Feb. 6. The company reported adjusted EPS of $0.20, missing the consensus estimate and plunging 81.5% year-over-year, while revenue of $1 billion declined 42% year-over-year. Additionally, the gross margin contracted 830 basis points to 55.4%, and the operating margin dropped to 20.5%. The company’s Q4 2025 guidance also disappointed investors, with projected revenue of $920 million to $1 billion and adjusted EPS between $0.05 and $0.15.
In comparison, rival NVIDIA Corporation (NVDA) has outperformed MCHP, gaining 27.9% over the past 52 weeks. However, NVIDIA has declined 18.3% YTD, a steeper drop than MCHP.
Despite MCHP’s weak performance, analysts are moderately optimistic about the stock’s prospects. The stock has a consensus rating of “Moderate Buy” from the 22 analysts covering it, and it is currently trading below the mean price target of $67.05.
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