
Microchip Technology (MCHP) Stock Forecast & Price Target
Microchip Technology (MCHP) Analyst Ratings
Bulls say
Microchip Technology has demonstrated strong performance in its microcontroller product line, achieving a quarter-over-quarter growth of 9.7%, despite an overall revenue decline expected in F3Q26. The company is poised for further margin improvement, with gross margins guided to increase by 150 basis points to 58.2% driven by higher-margin data center-related shipments and robust bookings. Management's insights indicate a significant strength in demand and a favorable outlook for growth through F4Q26-F2Q27, bolstered by a strategic focus on gaining market share in the 32-bit MCU segment and deleveraging its balance sheet.
Bears say
Microchip Technology is facing a negative outlook, primarily due to a delayed recovery in cyclical growth, as evidenced by its guidance for F3Q26 revenue, which is expected to be $1.129 billion—1% lower quarter-over-quarter and below both company estimates and market expectations. The potential deterioration in the macroeconomic environment, alongside pressures on gross margins and expected share losses in the competitive 32-bit MCU market, further exacerbate concerns about revenue growth. Additionally, the forecast for sequential declines in key sectors, such as auto and industrial, signals ongoing challenges that could significantly impact the company's financial performance.
This aggregate rating is based on analysts' research of Microchip Technology and is not a guaranteed prediction by Public.com or investment advice.
Microchip Technology (MCHP) Analyst Forecast & Price Prediction
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