Microchip Technology Inc

MCHP: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Microchip Earnings: Cutting Our Fair Value Estimate to $63 from $75 as the Downturn Remains Severe

Brian Colello

Feb 7, 2025

Microchip Technology reported disappointing fiscal third-quarter results and provided investors with an even softer forecast for the March quarter, as the company is amid an inventory correction unlike any the firm has ever seen. We think this wide-moat company is taking the right steps to turn around its fortunes, but such turnaround might take longer than previously anticipated. We cut our fair value estimate to $63 from $75. Shares still appear undervalued to us in the $50 range and we see a decent margin of safety for patient investors willing to wait out the turnaround.

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Microchip Technology Inc

Microchip Earnings: Cutting Our Fair Value Estimate to $63 from $75 as the Downturn Remains Severe

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