Microchip Technology Inc (MCHP) saw a decline of 5.24% as it crossed below its 5-day SMA, reflecting a challenging trading environment.
The stock's drop comes amid a broader market downturn, with the Nasdaq-100 down 2.21% and the S&P 500 down 1.47%. This sector rotation highlights the impact of negative market sentiment on semiconductor stocks, despite some gains in chipmakers like Nvidia and Intel. Investors are cautious ahead of upcoming earnings reports from major tech companies, which may influence market dynamics further.
The implications of this movement suggest that Microchip Technology's performance is closely tied to overall market conditions, and investors should remain vigilant as they assess the potential for recovery in the semiconductor sector.
Wall Street analysts forecast MCHP stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MCHP is 77.47 USD with a low forecast of 60.00 USD and a high forecast of 95.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
Wall Street analysts forecast MCHP stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MCHP is 77.47 USD with a low forecast of 60.00 USD and a high forecast of 95.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Buy
5 Hold
0 Sell
Moderate Buy
Current: 80.280
Low
60.00
Averages
77.47
High
95.00
Current: 80.280
Low
60.00
Averages
77.47
High
95.00
BofA
Vivek Arya
Neutral -> Buy
upgrade
$95
2026-01-28
New
Reason
BofA
Vivek Arya
Price Target
$95
AI Analysis
2026-01-28
New
upgrade
Neutral -> Buy
Reason
BofA analyst Vivek Arya upgraded Microchip to Buy from Neutral with a $95 price target.
BofA
Vivek Arya
Neutral -> Buy
upgrade
$78 -> $95
2026-01-28
New
Reason
BofA
Vivek Arya
Price Target
$78 -> $95
2026-01-28
New
upgrade
Neutral -> Buy
Reason
BofA analyst Vivek Arya upgraded Microchip to Buy from Neutral with a price target of $95, up from $78. Driven by industrial inventory replenishment, emerging growth in data center power, connectivity and aero, and defense markets as well as automotive content gains, less-crowded analog stocks "can reenergize," the analyst tells investors. Microchip is trading at a premium multiple, but the firm sees significant headroom for earnings upgrades since its raised calendar year 2027 sales forecast of $7B is below the company's prior $8B-plus peak, the analyst added. The firm raised its Microchip calendar 2026 and 2027 EPS estimates by 8% and 13% to $2.36 and $3.10, respectively.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for MCHP
Unlock Now
UBS
Buy
maintain
$85 -> $95
2026-01-26
New
Reason
UBS
Price Target
$85 -> $95
2026-01-26
New
maintain
Buy
Reason
UBS raised the firm's price target on Microchip to $95 from $85 and keeps a Buy rating on the shares.
Susquehanna
Positive
maintain
$75 -> $90
2026-01-22
Reason
Susquehanna
Price Target
$75 -> $90
2026-01-22
maintain
Positive
Reason
Susquehanna raised the firm's price target on Microchip to $90 from $75 and keeps a Positive rating on the shares. The firm updated targets in the semiconductor group as a part of an earnings preview. Susquehanna generally expects in-line results to modest upside in Q4, amid a "steadying upcycle" and a broadening of the artificial intelligence infrastructure supply chain. While the industrial end market is improving, auto remains somewhat challenged, the analyst tells investors in a research note.
About MCHP
Microchip Technology Incorporated is a provider of smart, connected, and secure embedded control solutions. The Company’s semiconductor products segment designs, develops, manufactures and markets mixed-signal microcontrollers, development tools and analog, interface, mixed-signal, timing, wired and wireless connectivity devices, and memory products. The Company's technology licensing segment includes sales and licensing of the Company's intellectual property. Its products include PIC64 Microprocessors, FPGAs, myMicrochip, MPLAB X IDE, Analog, and Microcontrollers. Its development tools include Atmel START and MPLAB Discover. Its manufacturing operations include wafer fabrication, wafer probe, assembly, and test. The Company’s solutions serve customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. The Company markets and sells its products worldwide primarily through a network of direct sales personnel and distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
