Should I Buy MCHP? MCHP 2026 Analysis

Should You Buy Microchip Technology Inc (MCHP) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

79.360

1 Day change

-1.15%

52 Week Range

81.430

Analysis Updated At

2026/01/26

Microchip Technology Inc. (MCHP) is not a strong buy at the moment for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. While there are some positive catalysts, such as improving analyst ratings and a steadying semiconductor market, the company's recent financial performance shows significant declines in revenue, net income, and EPS. Additionally, technical indicators are mixed, and there is no strong proprietary trading signal to support an immediate buy decision.

Technical Analysis

The technical indicators are mixed. The MACD histogram is negative and expanding downward, suggesting bearish momentum. RSI is neutral at 57.317, providing no clear signal. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading below the pivot level of 75.462, with support at 72.704 and resistance at 78.22. Overall, the technical setup does not strongly favor an immediate buy.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Options data suggests a slightly bullish sentiment with a lower put-call ratio, but the implied volatility percentile is high at 73.6, indicating elevated uncertainty.

Technical Summary

Sell

Buy

Positive Catalysts

Analysts have recently upgraded the stock, with price targets raised to $90 by Susquehanna and BNP Paribas.
The semiconductor sector is entering a balanced supply-demand phase, with modest earnings rebounds expected in
Microchip has issued positive guidance revisions for the December-end quarter, indicating a recovery across most end markets.

Neutral/Negative Catalysts

Recent financial performance shows significant declines in revenue (-2.01% YoY), net income (-82.27% YoY), and EPS (-78.57% YoY).
Broader macroeconomic challenges, such as tariff uncertainties and low global PMIs, may delay a stronger demand recovery.
The stock has underperformed in the regular market (-1.01%) and post-market (-0.03%) sessions.

Financial Performance

In Q2 2026, Microchip's revenue dropped by 2.01% YoY to $1.14 billion. Net income fell sharply by 82.27% YoY to $13.9 million, and EPS decreased by 78.57% YoY to $0.03. Gross margin also declined slightly to 46.46%. These figures indicate a challenging financial quarter for the company.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are generally positive on MCHP, with multiple firms raising price targets recently. Susquehanna and BNP Paribas have raised their targets to $90, citing industrial restocking and a steadying upcycle in the semiconductor market. However, some analysts remain cautious due to challenges in the auto market and broader macroeconomic uncertainties.

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 USD and a high forecast of 95 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

Averages

77.47

High

Current: 80.280

Low

Averages

77.47

High

BofA

Vivek Arya

Neutral -> Buy

upgrade

$95

AI Analysis

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.

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MCHP Should I Buy

MCHP Should I Buy

Should You Buy Microchip Technology Inc (MCHP) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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