Company Reports

Microchip Technology is a leading supplier of microcontrollers, or MCUs, which are semiconductors that act as the brains in a wide variety of common electronic devices, from electric razors to thermostats to power tools and all types of products in between. We like Microchip’s ability to generate free cash flow under virtually any economic scenario.

Microchip Technology reported fiscal first-quarter revenue of $1.485 billion, up 38% year over year and above the high end of guidance. Microchip expects September-quarter revenue of $1.6035 billion, which would be up 41% year over year and ahead of FactSet consensus estimates.

Microchip Technology reported fiscal fourth-quarter revenue of $1.311 billion, up 35% year over year and above the high end of guidance. Microchip expects June-quarter revenue of $1.455 billion, up 35% year over year and above the FactSet consensus estimate of $1.34 billion.

Microchip Technology is a leading supplier of microcontrollers, or MCUs, which are semiconductors that act as the brains in a wide variety of common electronic devices, from electric razors to thermostats to power tools and all types of products in between. We like Microchip’s ability to generate free cash flow under virtually any economic scenario.

Microchip Technology is a leading supplier of microcontrollers, or MCUs, which are semiconductors that act as the brains in a wide variety of common electronic devices, from electric razors to thermostats to power tools and all types of products in between. We like Microchip’s ability to generate free cash flow under virtually any economic scenario.

Microchip Technology's fiscal third-quarter revenue of $1.186 billion was up 16% year over year, ahead of the firm’s original guidance. Microchip expects March-quarter revenue of $1.26 billion, which would be ahead of FactSet consensus estimates and represents 30% year-over-year growth.

We met with executives from Microchip Technology, Texas Instruments, and STMicro at CES 2026 in Las Vegas. Our conversations centered on artificial intelligence, robotics (including humanoids), and automotive chip opportunities.

Microchip Technology reported fiscal second-quarter revenue of $1.14 billion, down 2% year over year but up 6% sequentially and toward the high end of guidance—its forecast for the December quarter of $1.129 billion would be up 10% year over year but below FactSet consensus estimates.

Microchip Technology reported fiscal first-quarter revenue of $1.08 billion, down 13% year over year but up 11% sequentially and above the high end of guidance. Microchip’s forecast for the September quarter calls for $1.13 billion of revenue, which would represent a 3% year-over-year decline

Microchip Technology is a leading supplier of microcontrollers, or MCUs, which are semiconductors that act as the brains in a wide variety of common electronic devices, from electric razors to thermostats to power tools and all types of products in between. We like Microchip’s ability to generate free cash flow under virtually any economic scenario.

Microchip Technology reported fiscal fourth-quarter revenue of $970 million, down 27% year over year, but ahead of guidance. June-quarter revenue is expected to be ahead of FactSet consensus estimates and rise 8% sequentially at the midpoint of guidance.

We maintain our $63 fair value estimate for wide-moat Microchip Technology, as we were generally encouraged with the content of its business update call. Shares appear fairly valued to us.

Microchip Technology is a leading supplier of microcontrollers, or MCUs, which are semiconductors that act as the brains in a wide variety of common electronic devices, from garage door openers to thermostats to power tools and all types of products in between. We view Microchip as one of the best-run firms within the chip space and like the firm’s ability to generate free cash flow under virtually any economic scenario.

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.

Microchip Technology is a leading supplier of microcontrollers, or MCUs, which are semiconductors that act as the brains in a wide variety of common electronic devices, from garage door openers to thermostats to power tools and all types of products in between. We view Microchip as one of the best-run firms within the chip space and like the firm’s ability to generate free cash flow under virtually any economic scenario.

Microchip Technology is a leading supplier of microcontrollers, or MCUs, which are semiconductors that act as the brains in a wide variety of common electronic devices, from garage door openers to thermostats to power tools and all types of products in between. We view Microchip as one of the best-run firms within the chip space and like the firm’s ability to generate free cash flow under virtually any economic scenario.

We have reassessed our ratings for wide-moat Microchip Technology, given the company’s surprise CEO transition and near-term guidance cut. We are lowering our fair value estimate to $75 from $81 as we model lower long-term gross margins and operating margins on a midcycle basis. We raise our Morningstar Uncertainty Rating to High from Medium based on greater volatility around the business and the stock price. We are also cutting our Capital Allocation Rating for Microchip to Standard from Exemplary, mostly because of missteps associated with inventory management rather than an indictment on the current management team or its roadmap for the year ahead. We maintain our wide moat rating but acknowledge that this rating is more debatable now than we would have thought a few months ago, given the severe drop in profitability during this latest downturn. Despite these rating adjustments, we still view the recent selloff as a bit overdone, and shares are attractively priced for long-term, patient investors willing to ride out the turnaround.

We’re surprised by the news of Microchip CEO and President Ganesh Moorthy announcing his retirement at the end of November, as we didn’t view a CEO transition as a likely near-term event. We maintain our $81 per share fair value estimate for wide-moat Microchip as longtime former CEO Steve Sanghi will run the company in the interim. We note that Rich Simoncic was promoted to the chief operating officer role in April 2024, perhaps as a CEO in waiting, as Moorthy served in the COO role for several years before taking the lead job. We have no unique knowledge of the situation, but we suspect that Simoncic is the most likely candidate to take over the role. We don’t anticipate any change in business strategy with this CEO transition.

Wide-moat Microchip Technology reported modest second-quarter results that slightly exceeded expectations. However, the company issued a cautious outlook for the December quarter, citing ongoing weak macroeconomic conditions, particularly in Europe and the Americas. We maintain our $81 per share fair value estimate as we view the current weakness in industrial and automotive markets as cyclical rather than structural.

Microchip Technology is a leading supplier of microcontrollers, or MCUs, which are semiconductors that act as the brains in a wide variety of common electronic devices, from garage door openers to thermostats to power tools and all types of products in between. We view Microchip as one of the best-run firms within the chip space and like the firm’s ability to generate free cash flow under virtually any economic scenario.