Microchip Technology (MCHP Quick QuoteMCHP - Free Report) is benefiting from its diverse product portfolio and strong demand across various sectors, including consumer, industrial, data center and medical applications.

Building on this momentum, MCHP recently expanded its TrustFLEX portfolio with the introduction of the ECC204, SHA104 and SHA105 CryptoAuthentication ICs, which are tailored to address the growing need for secure key provisioning across various applications. 

By integrating these hardware-based, secure storage devices, Microchip simplifies the development and documentation process for secure key management. 

These ICs are engineered to protect sensitive keys from unauthorized access and malicious attacks, while also meeting rigorous standards such as the Common Criteria Joint Interpretation Library High and Federal Information Processing Standard certifications. 

Microchip Technology Incorporated Price and Consensus

 

Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote

With its preconfigured use cases and customizable cryptographic keys, the devices streamline the creation of robust, trusted authentication systems for consumer, industrial, data center and medical applications.

Microchip’s Strong Portfolio Aids Prospect

Microchip’s latest move underscores its commitment to simplifying secure key provisioning and enhancing protection across diverse applications.

Further expanding MCHP’s Trust Portfolio platform in the first quarter of fiscal 2025, the company introduced ECC608 TrustMANAGER with Kudelski IoT keySTREAM to offer cloud-based software as a service, enabling secure authentication, custom PKI and streamlined lifecycle management for IoT devices.

Microchip also introduced a new family of PIC32CK 32-bit microcontrollers with integrated Hardware Security Module and TrustZone technology, offering designers enhanced security and flexibility.

Expanding its portfolio in the space domain has been noteworthy. MCHP released a radiation-tolerant PolarFire SoC FPGA in the first quarter of fiscal 2025 featuring low power consumption, zero configuration upsets and RISC-V architecture for space applications.

Despite MCHP’s robust portfolio, persistent inflationary pressures and high interest rates have resulted in a weak macro environment.

Microchip also experienced a significant inventory correction, which resulted in a 45.8% year-over-year decline in the top line to $1.24 billion in the fiscal first quarter. The distribution channels also reduced its inventory levels, which have negatively impacted the company’s top line.

Microchip expects net sales to be $1.12-$1.18 billion for the second quarter of fiscal 2025. Non-GAAP earnings are anticipated between 40 cents and 46 cents per share.

The Zacks Consensus Estimate for revenues is pegged at $1.15 billion, indicating a 48.92% year-over-year decline. The consensus mark for earnings is pegged at 45 cents per share, down by 14 cents in the past 30 days, implying a 72.22% year-over-year decline.

Zacks Rank & Stocks to Consider

Currently, Microchip Technology carries a Zacks Rank #5 (Strong Sell).

MCHP’s shares have declined 9% against the Zacks Computer and Technology sector’s growth of 20.7% in the year-to-date period.

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET Quick QuoteANET - Free Report) , Badger Meter (BMI Quick QuoteBMI - Free Report) and Daktronics (DAKT Quick QuoteDAKT - Free Report) , each sporting a Zacks Rank #1(Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Arista Networks’ shares have gained 49.4% in the year-to-date period. The long-term earnings growth rate for ANET is pegged at 17.20%. 

Badger Meter’s shares have gained 31.8% in the year-to-date period. The long-term earnings growth rate for BMI is pegged at 17.91%.

Shares of Daktronics have increased 80.1% in the year-to-date period. The long-term earnings growth rate for DAKT is pegged at 30%.