Do Wall Street Analysts Like Microchip Technology Stock?

Company Overview - Microchip Technology Incorporated (MCHP) is based in Chandler, Arizona, and specializes in developing, manufacturing, and selling smart, connected, and secure embedded control solutions with a market cap of $33.8 billion [1]. Stock Performance - MCHP has significantly underperformed the broader market, with stock prices gaining 8.2% in 2025 but plunging 17.9% over the past 52 weeks, compared to the S&P 500 Index's 16% gains year-to-date and 17.4% returns over the past year [2]. - The stock also lagged behind the First Trust Nasdaq Semiconductor ETF (FTXL), which surged 44.9% year-to-date and gained 38% over the past 52 weeks [3]. Financial Results - Following the release of lackluster Q1 results on August 7, MCHP's stock prices dropped 6.6%. The company's net sales for the quarter fell 13.4% year-over-year to $1.1 billion, and it reported a net loss of $46.4 million, down from a net income of $129.3 million in the same quarter last year [4]. Earnings Expectations - For the full fiscal 2026, analysts expect MCHP to deliver an adjusted EPS of $1.18, reflecting a 16.8% year-over-year increase. The company has a mixed earnings surprise history, surpassing bottom-line estimates three times in the past four quarters but missing projections once [5]. - The consensus rating for MCHP is "Moderate Buy," with 16 "Strong Buys," one "Moderate Buy," and eight "Holds" among the 25 analysts covering the stock [5]. Analyst Coverage - On September 15, Wells Fargo analyst Joe Quatrochi initiated coverage on MCHP with an "Equal-Weight" rating and set a price target of $60. The mean price target of $77.50 suggests a 24.9% upside potential, while the street-high target of $100 represents a 61.1% premium to current price levels [7].