Microchip Technology

MCHP · NASDAQ

$75.85+$1.43 (+1.92%)TodayMarket closed · Oct 20, 4:05 PM ET

Prev close $74.42

MCHP analyst rating

BuyConsensus of 22 analysts over the last 12 months. 73% rate it a buy.

Strong buy0
Buy16
Hold6
Underperform0
Sell0

12-month price target · 28 analysts

Average $108.83 (+43.5% upside)

Low: $80.80
Now: $75.85
High: $141.75

Upgrades and downgrades

The latest rating actions, newest first

MCHP analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Wells Fargo	Oct 20, 2026	Maintains	Equal-Weight	$88.00 → $80.00	54%
TD Cowen	Oct 19, 2026	Maintains	Hold	$90.00 → $75.00	39%
BMO Capital	Aug 21, 2026	Initiates	Outperform	$95.00	75%
Cantor Fitzgerald	Aug 17, 2026	Maintains	Overweight	$125.00	77%
UBS	Aug 7, 2026	Maintains	Buy	$130.00 → $120.00	69%
Citigroup	Aug 7, 2026	Maintains	Buy	$113.00 → $95.00	71%
Truist Securities	Aug 7, 2026	Maintains	Hold	$105.00 → $90.00	75%
Rosenblatt	Aug 7, 2026	Maintains	Buy	$120.00	53%
Cantor Fitzgerald	Aug 3, 2026	Maintains	Overweight	$125.00	77%
Wells Fargo	Jul 20, 2026	Maintains	Equal-Weight	$95.00 → $88.00	54%

The case for and against

Updated Oct 14, 2026

Bull case

Microchip Technology is benefiting from a broad cyclical recovery as the distribution inventory correction nears completion, with sell-through up 17% Q/Q, book-to-bill above 1, and bookings at their strongest level in roughly four years. Its fundamentals are strengthening on both demand and profitability, as June-quarter revenue reached $1.485B with Non-GAAP gross margin of 63.8% and operating margin of 35.1%, while operating cash flow of $511.5M and adjusted free cash flow of $478.6M supported lower net debt. Growth is also being diversified by data center, which was 17.1% of June-quarter sales and grew 97.8% Y/Y, while design wins in PCIe Gen6 and management’s expectation of approximately $1B of Data Center revenue in CY26 provide visibility into further expansion.

Bear case

Microchip Technology is vulnerable to both cyclicality and execution risk, since the semiconductor industry is highly cyclical and any global slowdown or macro uncertainty can quickly pressure revenues. Its business is also heavily concentrated in MCUs, which represent about 53% of revenue, so share losses in a highly competitive market could cause a meaningful deceleration in growth. The thesis is further weakened by dependence on capital management and leverage targets, while FY26 sales remain tied to diversified end markets such as Industrial at 31%, Data Center & Compute at 18%, and Automotive at 17%, leaving little room for operational missteps.

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