Founded in 1989, Chandler, Arizona-based Microchip Technology Incorporated (MCHP) develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas and internationally. The company has a market capitalization of $40.6 billion and operates through two segments, Semiconductor Products and Technology Licensing. MCHP offers general-purpose 8-bit, 16-bit, 32-bit, and 64-bit mixed-signal microcontrollers; 32-bit and 64-bit embedded mixed-signal microprocessors and related products for automotive, industrial, computing, and communications applications.
Shares of the semiconductor manufacturer have outperformed the broader market over the past year. MCHP stock has jumped 42.6% over the past 52 weeks and 26% on a year-to-date (YTD) basis. In comparison, the S&P 500 Index ($SPX) has returned 15% over the past year and 1.9% in 2026.
Narrowing the focus, MCHP has also outperformed the State Street Technology Select Sector SPDR ETF (XLK), which rose 27.7% over the past 52 weeks and delivered 3.7% returns this year.
On Jan. 6, MCHP stock rose over 11% after the company raised its Q3 2026 net sales forecast to $1.19 billion from a previous estimate of $1.11 billion to $1.15 billion range, above the consensus. This move raised investor confidence, as an upward revision to the sales forecast indicates a well-run company with healthy finances.
Additionally, on Nov. 12, MCHP stock grew 1.7% following the release of the company’s LAN866x family of 10BASE-T1S endpoint devices with Remote Control Protocol (RCP). These endpoint devices extend Ethernet connectivity to the very edge of in-vehicle networks and enable the vision of Software-Defined Vehicles (SDVs).
For the fiscal year ending in March, analysts expect MCHP to report a 12.9% YoY growth in adjusted EPS to $1.14. The company has a mixed earnings surprise history. It has surpassed and met the Street’s bottom-line estimates in two of the past four quarters, while missing on two occasions.
MCHP has a consensus “Strong Buy” rating overall, an upgrade from a “Moderate Buy” rating. Of the 24 analysts covering the stock, opinions include 19 “Strong Buys,” one “Moderate buy,” and four “Holds.”
This configuration has turned bullish, as “Strong Buy” ratings have climbed from 16 to 19 over the past two months, signaling improving sentiment.
On Jan. 26, UBS analyst Pradeep Ramani maintained a “Buy” rating for MCHP stock and increased the price target from $85 to $95.
MCHP’s mean price target of $83.61 indicates upside potential of 4.1% from the current market prices. The Street-high target of $95 suggests the stock could rise as much as 18.3%.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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