Microchip Technology Incorporat (MCHP) Stock Analysis
Range Bound setup
Technology · Semiconductors
Sell if holding. At $93.76, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.4%; Concentration risk — Geographic: foreign customers (75.0%).
Microchip Technology develops and manufactures embedded control products—microcontrollers, FPGAs, analog, and memory—for approximately 109,000 customers globally across automotive, industrial, communications, and data center markets. Revenue is split roughly 45% through... Read more
Sell if holding. At $93.76, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.4%; Concentration risk — Geographic: foreign customers (75.0%). Chart setup: RSI 52 mid-range, Bollinger mid-band. Score 5.6/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 78d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent Developments — Microchip Technology Incorporat
Latest news
- Microchip Technology Inc. stock underperforms Wednesday when compared to competitors - MarketWatch — MarketWatch negative
- MCHP Reiterated by Cantor Fitzgerald -- Price Target Maintained at $125 - GuruFocus — GuruFocus positive
- Microchip Technology (NASDAQ:MCHP) Given "Overweight" Rating at Cantor Fitzgerald - MarketBeat — MarketBeat positive
- Microchip Technology Stock Surges 17%, With A 5-Day Winning Spree - Trefis — Trefis positive
- Microchip (MCHP) Unveils New Trust Shield Devices for Enhanced C - GuruFocus — GuruFocus positive
Generated 2026-05-20T21:56:22Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerArrow Electronics10%10-K Item 1: 'With the exception of Arrow Electronics, our largest distributor, which made up 10% and 12% of our net sales, in fiscal 2025 and in fiscal 2024, respectively'
- HIGHGeographicforeign customers75%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'
- LOWGeographicChina17%10-K Item 1A: 'approximately 75% of our net sales were made to foreign customers, including 17% in China and 16% in Taiwan'
- LOWGeographicTaiwan16%10-K Item 1A: '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
2 floor-breakers·1 ceiling hit
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $93.76, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.4%; Concentration risk — Geographic: foreign customers (75.0%). Chart setup: RSI 52 mid-range, Bollinger mid-band. Prior stop was $87.44. Score 5.6/10, moderate confidence.
Take-profit target: $101.92 (+8.4% upside). Prior stop was $87.44. Stop-loss: $87.44.
Concentration risk — Geographic: foreign customers (75.0%); Thin upside margin: 8.4%; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.1).
Microchip Technology Incorporat trades at a P/E of 417.3 (forward 22.5). TrendMatrix value score: 5.0/10. Verdict: Sell.
32 analysts cover MCHP with a consensus score of 4.1/5. Average price target: $113.
What does Microchip Technology Incorporat do?Microchip Technology develops and manufactures embedded control products—microcontrollers, FPGAs, analog, and...
Microchip Technology develops and manufactures embedded control products—microcontrollers, FPGAs, analog, and memory—for approximately 109,000 customers globally across automotive, industrial, communications, and data center markets. Revenue is split roughly 45% through distributors and 55% direct; Arrow Electronics, its largest distributor, represented 10% of net sales in fiscal 2025.