Microchip Expects $500M Data Center Revenue by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Data Center Revenue Outlook: Microchip expects its data center revenue to reach approximately $500 million by 2026, prompting optimism from Morgan Stanley and leading to a more than 9% jump in premarket trading.
- Stock Price Reaction: Despite a roughly 10% increase in after-hours trading, analyst Joseph Moore noted that this reaction seems exaggerated as the data center figures align with prior commentary, and Microchip had previously stated it was not raising prices during its latest earnings call.
- Market Comparison Nuances: Moore highlighted that while the data center disclosure is beneficial, the varying definitions across companies complicate comparisons; for instance, Infineon and ON focus more on “AI Data Center,” whereas TXN and Microchip include broader enterprise DC exposure.
- Rating and Price Target: Morgan Stanley maintains an Equal-Weight rating on Microchip with a $94 price target, reflecting a cautious optimism regarding the company's future growth potential.
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Analyst Views on MCHP
Wall Street analysts forecast MCHP stock price to fall
18 Analyst Rating
13 Buy
5 Hold
0 Sell
Moderate Buy
Current: 96.550
Low
60.00
Averages
77.47
High
95.00
Current: 96.550
Low
60.00
Averages
77.47
High
95.00
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.
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