
Microchip Technology (MCHP) Stock Forecast & Price Target
Microchip Technology (MCHP) Analyst Ratings
Bulls say
Microchip Technology has demonstrated notable growth in its bookings, which increased by 10% and resulted in a bookings-to-billings ratio of 1.06, indicating strong demand for its products. The company's microcontroller segment showed a robust quarter-over-quarter growth of 9.7%, while it also anticipates higher-than-seasonal growth in revenue for the upcoming quarters, supported by a significant rise in order expedites and low customer inventory levels. Furthermore, management has guided an increase in next generation gross margin by 150 basis points to 58.2%, driven primarily by stronger shipments in the data center market, which are characterized by higher margins than the corporate average.
Bears say
The analysis indicates a negative outlook on Microchip Technology's stock, primarily due to a significant anticipated decline in revenue growth, with the company's guided F3Q26 revenue at $1.129 billion, falling short of both prior estimates and Street expectations. This revenue shortfall is compounded by management's acknowledgment of a delayed cyclical recovery, leading to softer performance projected in the upcoming quarters compared to earlier forecasts. Additionally, the company's expected gross margin of 57.8% for FY26 is under pressure from deteriorating macroeconomic conditions and potential losses in market share within the 32-bit MCU segment, raising concerns about inventory management and overall profitability.
This aggregate rating is based on analysts' research of Microchip Technology and is not a guaranteed prediction by Public.com or investment advice.
Microchip Technology (MCHP) Analyst Forecast & Price Prediction
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