Microchip Technology Incorporated’s Stock Price Plummets by 13.56% to $38.81, Highlighting a Sharp Market Downturn

Microchip Technology Incorporated (MCHP)

38.81 USD -6.09 (-13.56%) Volume: 23.85M

Microchip Technology Incorporated’s stock price stands at 38.81 USD, experiencing a significant drop of -13.56% this trading session with a trading volume of 23.85M. The stock has faced a considerable decrease YTD, with a percentage change of -32.33%, indicating a challenging market environment for MCHP.

Latest developments on Microchip Technology Incorporated

Microchip Technology Inc. (MCHP) saw a surge in its stock price on Wednesday, following the announcement of a pause on Trump’s tariffs. The company’s advanced PMIC for high-performance AI, industrial computing, and data center applications contributed to its positive performance. Additionally, major investors like FIL Ltd, Invesco Ltd., and Resona Asset Management Co. Ltd. increased their stakes in Microchip Technology, while others like Peapack Gladstone Financial Corp reduced their holdings. Despite facing financial challenges, Microchip Technology led the S&P 500 with impressive gains, outperforming its competitors and topping the leaders in the market. With the introduction of space-saving power management circuits and the integration of buck converters, LDOs, and a controller in its MCP16701, Microchip Technology continues to innovate and attract investors.

Microchip Technology Incorporated on Smartkarma

Analysts on Smartkarma, like Baptista Research, have been closely monitoring Microchip Technology‘s performance. According to their research reports, Microchip Technology faced challenges in its Q3 Fiscal 2025 results, with net sales down significantly year-over-year. The company is undergoing a strategic plan to restructure its operations and improve performance amidst a challenging business environment.

On the other hand, analyst William Mann has taken a bearish stance on Microchip Technology, initiating a high conviction short position with a target price range of $45-50. Mann cites declining fundamentals, high valuation, geo-political risks, and operational challenges as reasons for the sharp correction he predicts if sector rotation occurs. This contrasting sentiment highlights the diverse views among analysts on the future prospects of Microchip Technology.

A look at Microchip Technology Incorporated Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Microchip Technology has been given a mixed outlook according to Smartkarma Smart Scores. While the company scores high in terms of dividends and momentum, it falls short in resilience. This indicates that Microchip may be a good option for investors looking for steady income through dividends, but may not be as resilient in the face of economic downturns.

Looking ahead, Microchip’s growth and value scores are in the middle range, suggesting that the company may see moderate growth in the future. With a focus on designing and manufacturing microcontrollers and related products for embedded control applications, Microchip Technology is positioned to capitalize on the increasing demand for these technologies in various industries.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.

💡 Before it’s here, it’s on Smartkarma