Microchip Technology Incorporat (MCHP) Stock Analysis
Technology · Semiconductors
Sell if holding. Analyst target reached at $91.70 — A.R:R is negative (-0.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: outside wafer foundries (64.0%).
Microchip Technology develops and manufactures embedded control solutions including microcontrollers, microprocessors, FPGAs, and analog/memory products for automotive, aerospace, industrial, data center, and consumer markets. About 75% of fiscal 2025 net sales were to foreign... Read more
Sell if holding. Analyst target reached at $91.70 — A.R:R is negative (-0.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: outside wafer foundries (64.0%). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.7/10, moderate confidence.
Passes 5/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 7d<=7d. Suitability: aggressive.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHSupplieroutside wafer foundries64%10-K Item 1A: 'approximately 64% of our net sales came from products that were produced at outside wafer foundries'
- LOWGeographicChina17%10-K Item 1A: 'During fiscal 2025, approximately 75% of our net sales were made to foreign customers, including 17% in China and 16% in Taiwan.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $91.70 — A.R:R is negative (-0.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: outside wafer foundries (64.0%). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $85.32. Score 4.7/10, moderate confidence.
Take-profit target: $90.40 (-1.5% upside). Prior stop was $85.32. Stop-loss: $85.32.
Concentration risk — Supplier: outside wafer foundries (64.0%); Analyst target reached - limited upside remaining; Near 52-week high (0.5% away).
Microchip Technology Incorporat trades at a P/E of N/A (forward 33.9). TrendMatrix value score: 3.6/10. Verdict: Sell.
32 analysts cover MCHP with a consensus score of 4.1/5. Average price target: $88.
What does Microchip Technology Incorporat do?Microchip Technology develops and manufactures embedded control solutions including microcontrollers, microprocessors,...
Microchip Technology develops and manufactures embedded control solutions including microcontrollers, microprocessors, FPGAs, and analog/memory products for automotive, aerospace, industrial, data center, and consumer markets. About 75% of fiscal 2025 net sales were to foreign customers, with approximately 64% of products manufactured at outside wafer foundries.