Microchip Technology Inc

MCHP: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$56.00	Xnkgk	Splcglgb

Microchip Remains Capacity Constrained Like Its Peers, but Foresees Solid Growth; $165 FVE

Brian Colello

Aug 4, 2021

Wide-moat Microchip Technology reported strong fiscal first-quarter results and its expectations for the rest of fiscal 2022 (ending March 2022) were ahead of our prior expectations, as the company’s backlog of orders continues to expand because of tremendous near-term demand. We will raise our fair value estimate to $165 from $150. Shares were up only modestly after hours to $150, so we now view shares as modestly undervalued.

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