MCHP
Microchip Technology (NASDAQ: MCHP) rose 6% premarket after disclosing strong data-center-focused revenue...
Article Summary
HOLD- Microchip Technology (NASDAQ: MCHP) rose 6% premarket after disclosing strong data-center-focused revenue growth and plans selective price increases across its product portfolio to offset rising supplier and operating costs.
- Microchip Technology, said its dedicated data center business generated $302.7 million in revenue in 2025 and is on track to approach $500 million in 2026, with 65% expected year-on-year growth.
- The broader data center and compute segment accounts for roughly 18% of total revenue and includes microcontrollers, analog chips, power-management solutions, timing products, memory offerings, security technologies, and client PC-related sales.
- Microchip appointed Mitch Little, a former senior executive at the company, to its board of directors effective June 1, and the company is scheduled to address investors at the Bank of America Global Technology Conference on June 2 and the Evercore Global TMT conference on June 3.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 7.1% | 25% | 35.0 ptsBelow Screener (7.1%) - Weak growth |
| EPS Growth Next 5Y ? | 40.1% | 25% | 100.0 ptsExceptional (40.1%) - Very high expectations |
| Target Price Upside ? | 21.0% | 20% | 70.0 ptsGood Upside (21.0%) - Target: $116.35 vs Current: $96.12 |
| Gross Margin % ? | 43.6% | 15% | 60.0 ptsSolid (43.6%) - Decent margins |
| Drawdown from 52-Wk High ? | -9.2% | 15% | 20.0 ptsBarely a Dip (-9.2%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About MCHP
- Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia.
- It operates through two segments, Semiconductor Products and Technology Licensing.
- The company 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 specialized mixed-signal microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.
- It also provides analog products, including power management, linear, mixed-signal, high voltage, thermal management, discrete diodes and MOSFETS, radio frequency (RF), drivers, safety, security, timing, USB, ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program mixed-signal microcontroller, FPGA, and microprocessor products.
- In addition, the company offers memory products that consist of serial electrically erasable programmable read only memory (EEPROMs), serial flash memories, parallel flash memories, serial static random-access memory (SRAM), and electrically erasable random-access memory (EERAMs) for production of footprint devices; and licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products, as well as provides engineering services.
- Further, it provides wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems, application specific integrated circuits, and products for aerospace applications.
- The company was incorporated in 1989 and is headquartered in Chandler, Arizona.