We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Microchip's Graphics Suite Launch Push the Stock Higher?
Read MoreHide Full Article
Microchip Technology (MCHP - Free Report) recently introduced the Microchip Graphics Suite (MGS), a comprehensive solution aimed at simplifying the integration of graphical user interfaces (GUIs) into electronic devices.
Designed to enhance user experiences by enabling intuitive and visually appealing interactions, MGS supports embedded developers in incorporating animations, images and touchscreens into its designs.
Seamlessly integrating with Microchip’s 32-bit microcontrollers (MCUs) and microprocessors (MPUs), MGS is compatible with multiple development platforms like MPLAB Harmony v3 and Linux.
MGS offers powerful features such as a WYSIWYG interface, hardware-free prototyping simulator and broad support for various displays and touchscreens, making it an ideal tool for designers seeking efficiency and reusability across projects.
Microchip Technology Incorporated Price and Consensus
MCHP shares have declined 12.6% against the Zacks Computer & Technology sector’s return of 19.1% on a year-to-date basis.
Despite MCHP’s robust portfolio, persistent inflationary pressures and high interest rates have resulted in a weak macro environment.
It experienced a significant inventory correction, which resulted in a 45.8% year-over-year decline in the top line to $1.24 billion in first-quarter fiscal 2025. The distribution channels also reduced its inventory levels, which have negatively impacted the top line.
However, the latest move bodes well for Microchip’s focus on enhancing user experience through its MGS, streamlining GUI integration across diverse electronic devices.
It is benefiting from consistent strength in its microcontroller business. In first-quarter fiscal 2025, the company introduced the AVR DU family of 8-bit microcontrollers that feature integrated USB connectivity, enhanced security and improved power delivery over previous versions.
MCHP’s strong demand across multiple end markets, including industrial, automotive, aerospace and defense, data center and communications infrastructure, has been a key catalyst.
In August, the company introduced its latest Single Pair Ethernet (SPE) solutions with the launch of the LAN887x Ethernet PHY transceiver family. The solution is designed to meet the growing connectivity demands in the automotive, industrial, avionics, robotics and automation sectors.
Microchip expects net sales to be $1.12-$1.18 billion for second-quarter fiscal 2025. Non-GAAP earnings are anticipated to be between 40 cents and 46 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $1.15 billion, indicating a 48.93% year-over-year decline. The consensus mark for earnings is pegged at 43 cents per share, declined by a couple of pennies in the past 30 days.
What Investors Should Do With MCHP Stock?
MCHP stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
The forward 12-month Price/Book ratio for MCHP stands at 6.60X, higher than its Zacks Semiconductor - Analog and Mixed industry’s 4.27X, reflecting a stretched valuation.
Microchip currently carries Zacks Rank #5 (Strong Sell), which implies that investors should stay away from investing in this stock at present.
Top-Rank Stocks To Buy
AudioEye (AEYE - Free Report) , Aspen Technology and Badger Meter (BMI - Free Report) are some better-ranked stocks in the broader technology sector. AudioEye and Aspen Technology currently sport Zacks Rank #1 (Strong Buy) at present, while Badger Meter carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AudioEye’s shares have surged 331.3% in the year-to-date period. The long-term earnings growth rate for AEYE is pegged at 25%.
Aspen Technology’s shares have moved up 8.6% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 13.12%.
Badger Meter’s shares have appreciated 42.2% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 17.91%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will Microchip's Graphics Suite Launch Push the Stock Higher?
Microchip Technology (MCHP - Free Report) recently introduced the Microchip Graphics Suite (MGS), a comprehensive solution aimed at simplifying the integration of graphical user interfaces (GUIs) into electronic devices.
Designed to enhance user experiences by enabling intuitive and visually appealing interactions, MGS supports embedded developers in incorporating animations, images and touchscreens into its designs.
Seamlessly integrating with Microchip’s 32-bit microcontrollers (MCUs) and microprocessors (MPUs), MGS is compatible with multiple development platforms like MPLAB Harmony v3 and Linux.
MGS offers powerful features such as a WYSIWYG interface, hardware-free prototyping simulator and broad support for various displays and touchscreens, making it an ideal tool for designers seeking efficiency and reusability across projects.
Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote
Will Strong Portfolio Aid MCHP’s Prospect?
MCHP shares have declined 12.6% against the Zacks Computer & Technology sector’s return of 19.1% on a year-to-date basis.
Despite MCHP’s robust portfolio, persistent inflationary pressures and high interest rates have resulted in a weak macro environment.
It experienced a significant inventory correction, which resulted in a 45.8% year-over-year decline in the top line to $1.24 billion in first-quarter fiscal 2025. The distribution channels also reduced its inventory levels, which have negatively impacted the top line.
However, the latest move bodes well for Microchip’s focus on enhancing user experience through its MGS, streamlining GUI integration across diverse electronic devices.
It is benefiting from consistent strength in its microcontroller business. In first-quarter fiscal 2025, the company introduced the AVR DU family of 8-bit microcontrollers that feature integrated USB connectivity, enhanced security and improved power delivery over previous versions.
MCHP’s strong demand across multiple end markets, including industrial, automotive, aerospace and defense, data center and communications infrastructure, has been a key catalyst.
In August, the company introduced its latest Single Pair Ethernet (SPE) solutions with the launch of the LAN887x Ethernet PHY transceiver family. The solution is designed to meet the growing connectivity demands in the automotive, industrial, avionics, robotics and automation sectors.
Microchip expects net sales to be $1.12-$1.18 billion for second-quarter fiscal 2025. Non-GAAP earnings are anticipated to be between 40 cents and 46 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $1.15 billion, indicating a 48.93% year-over-year decline. The consensus mark for earnings is pegged at 43 cents per share, declined by a couple of pennies in the past 30 days.
What Investors Should Do With MCHP Stock?
MCHP stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
The forward 12-month Price/Book ratio for MCHP stands at 6.60X, higher than its Zacks Semiconductor - Analog and Mixed industry’s 4.27X, reflecting a stretched valuation.
Microchip currently carries Zacks Rank #5 (Strong Sell), which implies that investors should stay away from investing in this stock at present.
Top-Rank Stocks To Buy
AudioEye (AEYE - Free Report) , Aspen Technology and Badger Meter (BMI - Free Report) are some better-ranked stocks in the broader technology sector. AudioEye and Aspen Technology currently sport Zacks Rank #1 (Strong Buy) at present, while Badger Meter carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AudioEye’s shares have surged 331.3% in the year-to-date period. The long-term earnings growth rate for AEYE is pegged at 25%.
Aspen Technology’s shares have moved up 8.6% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 13.12%.
Badger Meter’s shares have appreciated 42.2% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 17.91%.