Wall Street Sentiment towards Microchip Technology Stocks: Bullish or Bearish Projections
Microchip Technology Incorporated (MCHP), a leading developer and manufacturer of smart, connected, and secure embedded control solutions, finds itself in a favourable position according to most analysts. The consensus rating among 23 analysts covering MCHP is a "Strong Buy," with 16 analysts giving a firm "Strong Buy" recommendation, one "Moderate Buy," and six "Holds."
As of writing, the stock is trading below the mean price target of $75.13, with individual targets ranging up to a high near $90, indicating potential upside of over 33.2% from current trading levels around $66. The average price target across around 22 analysts is approximately $70.10 to $75.47 per share.
The optimistic outlook stems from MCHP's strategic focus on high-growth markets such as AI, automotive electronics (including advanced driver assistance systems), and space technologies. Recent partnerships, like the one with Delta Electronics on silicon carbide solutions, further bolster this positive sentiment.
Despite near-term earnings pressure and recent quarterly shortfalls, analysts remain cautiously optimistic. For the upcoming earnings, Microchip is expected to report a quarterly EPS of $0.24, down 54.7% year-over-year, and revenues of about $1.05 billion, a 15.1% decline compared to a year ago. However, analysts expect a cautious recovery in revenue for the current fiscal year, ending in March 2026, with EPS growth of 12.9% year-over-year to $1.14.
Following its Q4 2025 results on May 8, shares of Microchip Technology climbed 12.6%. For the broader market, the Technology Select Sector SPDR Fund's ($XLK) return over the past 52 weeks was 25.2%.
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This article was published with no positions in any of the securities mentioned by Sohini Mondal.
Technology giants like Microchip Technology Incorporated are significantly benefiting from the increasing demand in high-growth sectors such as AI, automotive electronics, and space technologies. The strategic collaborations, such as the one with Delta Electronics on silicon carbide solutions, are further accentuating this growth trajectory.
Given its strong focus on these dynamic markets and the optimistic forecasts by most analysts, who collectively recommend a "Strong Buy" for MCHP, the company's stock could potentially witness an upside of over 33.2% from current trading levels around $66, with individual forecasts reaching up to $90.
