Microchip Technology (MCHP) declined 0.9% following recent analyst coverage and earnings reports. Barclays initiated coverage on February 12 with an Equal Weight rating and $80 price target, stating the company has reduced sensitivity to industrial demand swings due to diversification, with approximately 40% of sales from Data Center and Aerospace & Defense sectors. However, Barclays noted potential pressure from market share losses in microcontrollers. In Q3 fiscal 2026, the company reported net sales of $1.185 billion, exceeding guidance, with 4% sequential growth and 15.6% year-over-year growth driven by networking, data center, FPGA, and licensing. CEO Steve Sanghi highlighted three PCI Express Gen 6 switch design wins, with one expected to generate over $100 million in revenue during calendar year 2027. Analysts assigned a consensus "Moderate Buy" rating with an average $86 price target. Generation Investment Management exited its position in the fourth quarter.
Read full analysisMicrochip Technology (MCHP) declined 0.9% following recent analyst coverage and earnings reports. Barclays initiated coverage on February 12 with an Equal Weight rating and $80 price target, stating the company has reduced sensitivity to industrial demand swings due to diversification, with approximately 40% of sales from Data Center and Aerospace & Defense sectors. However, Barclays noted potential pressure from market share losses in microcontrollers. In Q3 fiscal 2026, the company reported net sales of $1.185 billion, exceeding guidance, with 4% sequential growth and 15.6% year-over-year growth driven by networking, data center, FPGA, and licensing. CEO Steve Sanghi highlighted three PCI Express Gen 6 switch design wins, with one expected to generate over $100 million in revenue during calendar year 2027. Analysts assigned a consensus "Moderate Buy" rating with an average $86 price target. Generation Investment Management exited its position in the fourth quarter.
Microchip Technology designs and manufactures microcontrollers, analog semiconductors, and connectivity solutions used across automotive, industrial, aerospace, and data center applications. The company recently reported fiscal Q3 results showing 4% sequential and 15.6% year-over-year revenue growth, with CEO Steve Sanghi highlighting strong bookings and a broad-based recovery plan. Today's underperformance relative to semiconductor peers suggests stock-specific headwinds as the company consolidates below its 52-week high amid notable insider and institutional selling.