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Microchip (MCHP) Expands Portfolio With AVR DU Family of MCUs
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Microchip Technology (MCHP - Free Report) is expanding its embedded systems portfolio with the recently announced launch of the AVR DU family of microcontrollers (MCUs). This latest addition brings forth a host of enhancements, most notably in USB connectivity, security features, and power delivery capabilities.
USB connectivity has long been hailed for its versatility in embedded designs, offering compatibility across devices, efficient communication protocols, and power delivery functionalities. The AVR DU family takes this a step further by integrating USB connectivity with enhanced security features and increased power delivery, setting a new standard in the realm of USB microcontrollers.
One of the standout features of the AVR DU MCUs is its support for power delivery of up to 15W through the USB interface. This capability, not commonly found in similar microcontrollers, opens avenues for applications such as USB-C charging with currents up to 3A at 5V, making these MCUs ideal for devices like portable power banks and rechargeable toys.
In addition to bolstered power delivery, the AVR DU family incorporates Microchip’s Program and Debug Interface Disable features to enhance security. This feature effectively locks out access to the programming/debugging interface, thwarting unauthorized attempts to tamper with firmware.
Moreover, the inclusion of Read-While-Write Flash and a secure bootloader ensures secure firmware updates, allowing for seamless in-field updates without disrupting product operation.
Microchip Technology Incorporated Price and Consensus
The AVR DU family also streamlines design efforts and reduces costs through features like USB clock recovery, eliminating the need for costly external crystals. The Core Independent Peripherals feature consolidates the main device functions onto a single-chip solution, saving board space and reducing design complexity.
With applications ranging from fitness wearables to industrial equipment, the AVR DU MCUs offer developers a powerful and efficient solution to meet their embedded design needs. Supported by comprehensive development tools like MPLAB Code Configurator and MPLAB X Integrated Development Environment, Microchip empowers developers to bring their ideas to life efficiently and effectively.
Microchip Suffers From Weak Macroeconomic Conditions
Despite a strong and expanding portfolio, persistent inflation and high interest rates have been contributing to the weak macro environment. This has been detrimental to MCHP’s prospects.
Its shares have gained 1.7% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 11.4%.
Microchip has been receiving requests to push out or cancel backlog as customers sought to rebalance their inventory due to weaker business conditions.
It has paused internal capacity expansion that is expected to lower capital expenditure spending in fiscal 2024 and 2025 due to the weakening demand and challenging macroeconomic environment.
The company has been striving to lower lead times, which it believes is the best way to help customers during a period of macro weakness and growing uncertainty. However, shorter lead times are resulting in lower bookings and reduced short-term visibility.
Microchip expects net sales to be $1.225-$1.425 billion for the fourth quarter of fiscal 2024. Non-GAAP earnings are anticipated between 46 cents per share and 68 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $1.33 billion, indicating a 40.57% year-over-year decline. The consensus mark for earnings stands at 57 cents per share, suggesting a 65.24% year-over-year decline.
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Microchip (MCHP) Expands Portfolio With AVR DU Family of MCUs
Microchip Technology (MCHP - Free Report) is expanding its embedded systems portfolio with the recently announced launch of the AVR DU family of microcontrollers (MCUs). This latest addition brings forth a host of enhancements, most notably in USB connectivity, security features, and power delivery capabilities.
USB connectivity has long been hailed for its versatility in embedded designs, offering compatibility across devices, efficient communication protocols, and power delivery functionalities. The AVR DU family takes this a step further by integrating USB connectivity with enhanced security features and increased power delivery, setting a new standard in the realm of USB microcontrollers.
One of the standout features of the AVR DU MCUs is its support for power delivery of up to 15W through the USB interface. This capability, not commonly found in similar microcontrollers, opens avenues for applications such as USB-C charging with currents up to 3A at 5V, making these MCUs ideal for devices like portable power banks and rechargeable toys.
In addition to bolstered power delivery, the AVR DU family incorporates Microchip’s Program and Debug Interface Disable features to enhance security. This feature effectively locks out access to the programming/debugging interface, thwarting unauthorized attempts to tamper with firmware.
Moreover, the inclusion of Read-While-Write Flash and a secure bootloader ensures secure firmware updates, allowing for seamless in-field updates without disrupting product operation.
Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote
The AVR DU family also streamlines design efforts and reduces costs through features like USB clock recovery, eliminating the need for costly external crystals. The Core Independent Peripherals feature consolidates the main device functions onto a single-chip solution, saving board space and reducing design complexity.
With applications ranging from fitness wearables to industrial equipment, the AVR DU MCUs offer developers a powerful and efficient solution to meet their embedded design needs. Supported by comprehensive development tools like MPLAB Code Configurator and MPLAB X Integrated Development Environment, Microchip empowers developers to bring their ideas to life efficiently and effectively.
Microchip Suffers From Weak Macroeconomic Conditions
Despite a strong and expanding portfolio, persistent inflation and high interest rates have been contributing to the weak macro environment. This has been detrimental to MCHP’s prospects.
Its shares have gained 1.7% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 11.4%.
Microchip has been receiving requests to push out or cancel backlog as customers sought to rebalance their inventory due to weaker business conditions.
It has paused internal capacity expansion that is expected to lower capital expenditure spending in fiscal 2024 and 2025 due to the weakening demand and challenging macroeconomic environment.
The company has been striving to lower lead times, which it believes is the best way to help customers during a period of macro weakness and growing uncertainty. However, shorter lead times are resulting in lower bookings and reduced short-term visibility.
Microchip expects net sales to be $1.225-$1.425 billion for the fourth quarter of fiscal 2024. Non-GAAP earnings are anticipated between 46 cents per share and 68 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $1.33 billion, indicating a 40.57% year-over-year decline. The consensus mark for earnings stands at 57 cents per share, suggesting a 65.24% year-over-year decline.
Zacks Rank & Stocks to Consider
Microchip currently has a Zacks Rank #5 (Sell).
NVIDIA (NVDA - Free Report) , Veeva Systems (VEEV - Free Report) and Synopsys (SNPS - Free Report) are some better-ranked stocks in the broader sector, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Year to date, shares of NVDA, VEEV and SNPS have gained 71.8%, 11.4% and 10.4%, respectively.
Long-term earnings growth rates for NVIDIA, Veeva and Synopsys are currently pegged at 30.93%, 24.09% and 17.51%, respectively.