Microchip Technology (NASDAQ:MCHP) Stock Price Expected to Rise, Needham & Company LLC Analyst Says

Key Points

• Needham & Company LLC raised its price target on Microchip from $84 to $120 and maintained a "buy" rating, implying roughly an 18% upside from the prior close.
• Microchip beat Q4 estimates with revenue of $1.311B (+35.1% YoY) and non‑GAAP EPS of $0.57 (vs. $0.50 consensus), and issued fiscal Q1 guidance of $0.670–$0.710 EPS and $1.4B–$1.5B revenue, which helped fuel the stock's rally.
• CEO Steve Sanghi sold 416,581 shares for about $36.9M under a pre‑arranged Rule 10b5‑1 plan (insiders sold 526,552 shares in the last 90 days), reducing his ownership by ~4.2%.

Microchip Technology (NASDAQ:MCHP - Get Free Report) had its target price lifted by equities researchers at Needham & Company LLC from $84.00 to $120.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has a "buy" rating on the semiconductor company's stock. Needham & Company LLC's price target indicates a potential upside of 18.13% from the company's previous close.

Other analysts also recently issued research reports about the company. Zacks Research downgraded Microchip Technology from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 24th. Bank of America upgraded Microchip Technology from a "neutral" rating to a "buy" rating and set a $95.00 price objective for the company in a research report on Wednesday, January 28th. BNP Paribas Exane upgraded Microchip Technology from a "neutral" rating to an "outperform" rating and set a $90.00 price objective for the company in a research report on Thursday, January 22nd. Wells Fargo & Company boosted their price objective on Microchip Technology from $68.00 to $70.00 and gave the company an "equal weight" rating in a research report on Friday, February 6th. Finally, Jefferies Financial Group reiterated a "hold" rating on shares of Microchip Technology in a research report on Wednesday, February 4th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat.com, Microchip Technology currently has a consensus rating of "Moderate Buy" and an average price target of $87.78.

Microchip Technology Stock Performance

NASDAQ:MCHP opened at $101.58 on Friday. The business has a 50 day moving average of $73.27 and a 200 day moving average of $69.20. The company has a market capitalization of $54.97 billion, a price-to-earnings ratio of -350.28, a PEG ratio of 1.38 and a beta of 1.75. Microchip Technology has a 1-year low of $48.52 and a 1-year high of $103.24. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.07. The company had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.26 billion. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.Microchip Technology's quarterly revenue was up 35.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. On average, sell-side analysts predict that Microchip Technology will post 1.16 earnings per share for the current fiscal year.

Insider Activity at Microchip Technology

In related news, CEO Steve Sanghi sold 416,581 shares of the company's stock in a transaction that occurred on Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the completion of the transaction, the chief executive officer owned 9,495,805 shares in the company, valued at $840,663,616.65. This represents a 4.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 526,552 shares of company stock worth $47,130,465 in the last ninety days. 1.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Cassaday & Co Wealth Management LLC bought a new position in shares of Microchip Technology during the first quarter valued at approximately $108,000. Meeder Advisory Services Inc. grew its stake in Microchip Technology by 11.9% in the first quarter. Meeder Advisory Services Inc. now owns 9,354 shares of the semiconductor company's stock worth $604,000 after purchasing an additional 995 shares during the period. Parallel Advisors LLC grew its stake in Microchip Technology by 8.3% in the first quarter. Parallel Advisors LLC now owns 10,679 shares of the semiconductor company's stock worth $690,000 after purchasing an additional 814 shares during the period. KBC Group NV grew its stake in Microchip Technology by 188.8% in the first quarter. KBC Group NV now owns 217,412 shares of the semiconductor company's stock worth $14,047,000 after purchasing an additional 142,129 shares during the period. Finally, SEB Asset Management AB purchased a new stake in Microchip Technology in the first quarter worth $8,572,000. Institutional investors own 91.51% of the company's stock.

Microchip Technology News Summary

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Q4 results beat and management raised near‑term outlook: revenue $1.311B (+35.1% YoY), non‑GAAP EPS $0.57 vs $0.50 consensus, and fiscal Q1 guidance (EPS $0.670–0.710; revenue $1.4B–$1.5B) well above Street estimates — the main driver of the stock’s upside. Microchip Tech forecasts quarterly revenue above estimates on strong chip demand
• Positive Sentiment: Board declared a quarterly cash dividend of $0.455/share (payable June 5, record/ex‑div May 22), yielding ~1.8% — modest income support and signals confidence in cash flow. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share
• Positive Sentiment: New product wins expand addressable markets: announced next‑gen Single Pair Ethernet PHY families for automotive/industrial (supports MACsec, TSN, functional safety) — helps capture Software‑Defined Vehicle and industrial Ethernet demand. Next‑Generation 100/1000BASE‑T1 Single Pair Ethernet PHYs Integrate MACsec Security, Time Sensitive Networking and Functional Safety
• Positive Sentiment: Data center product collaboration with Intel — new MD‑990 timing modules target distributed AI and 5G vRAN servers, expanding Microchip’s presence in low‑latency datacenter infrastructure. Microchip And Intel Timing Modules Spotlight Data Center Valuation Questions
• Positive Sentiment: Sector analyst momentum: Morgan Stanley raised price targets across semiconductors, including Microchip — supportive macro/sector backdrop. Morgan Stanley raises price targets across semiconductor sector
• Neutral Sentiment: Earnings call transcript and slide deck are available for detail on product demand, inventory trends and margin drivers (useful if you model forward margins). Microchip Technology Incorporated (MCHP) Q4 2026 Earnings Call Transcript
• Neutral Sentiment: Investor commentary on the recent price run-up questions valuation — many articles note a large multi‑month surge; this is a reminder to weigh growth vs stretched multiples. Is It Too Late To Consider Microchip Technology (MCHP) After Its Recent Share Price Surge
• Negative Sentiment: GAAP profitability nuances: despite strong non‑GAAP results, MarketBeat notes a negative GAAP net margin (one‑time/adjustment effects may be weighing on GAAP profit); investors should check whether charges are recurring. Microchip Technology issued its quarterly earnings data

About Microchip Technology

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip's products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.

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