Microchip Technology Stock (NASDAQ: MCHP)

Dernières nouvelles pour Microchip Technology (NASDAQ:MCHP) Stock

Microchip Technology

Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.

Microchip Technology Incorporated - Common Stock

Microchip Technology Inc

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'The U.S. Has Initiated A Section 301 Investigation Into China's Mature Manufacturing Processes, Specifically Focusing On Production For Silicon Carbide Semiconductors' - DigiTimes Alert

The semiconductor sector has had an electrifying run in recent years, but 2024 proved to be more selective. While some chipmakers soared to triple-digit gains, others <a href="https://www.benzinga.com/topic/chipmakers">struggled to stay afloat. </a>
As traders look forward to2025, a fresh question emerges: Should you chase the winners, pick the laggards, or focus on undervalued opportunities with high analyst backing?
The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) delivered a 15.2% year-to-date gain as of Dec. 23, cooling off after a massive 65% surge in 2023. Within the group, performance varied wildly:
<ul>
<li>Top Performers: Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rose 180%, while Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) gained 109%.</li>
<li>Biggest Laggards: Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) sank 60%, Microchip Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) fell 36%, and ON Semiconductor Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>) dropped 20%.</li>
</ul>
The key takeaway? The semiconductor market is far from homogenous, with companies diverging sharply based on their ability to capitalize on emerging trends like AI.
<h3 class="wp-block-heading">5 Chip Stocks Analysts Are Betting On for 2025</h3>
Rather than chasing laggards or jumping on already overheated names, traders might want to focus on undervalued semiconductor stocks that align with analysts' bullish forecasts. 
Here are five potential winners for 2025:
<h4 class="wp-block-heading">5. Applied Materials (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>)</h4>
<ul>
<li>Median Price Target (upside vs. current market price) : 32.02%</li>
<li>2024 YTD Performance: +3.29%</li>
<li>2023 Total Return: 67.97%</li>
<li>Market Cap: $136.21 billion</li>
<li>P/E Ratio (Next 12 Months): 17.7x</li>
</ul>
<h4 class="wp-block-heading">4. Monolithic Power Systems (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MPWR#NASDAQ">MPWR</a>)</h4>
<ul>
<li>Median Price Target (upside vs. current market price): 33.08%</li>
<li>2024 YTD Performance: -2.20%</li>
<li>2023 Total Return: 79.78%</li>
<li>Market Cap: $30.09 billion</li>
<li>P/E Ratio (Next 12 Months): 38.6x</li>
</ul>
<h4 class="wp-block-heading">3. Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>)</h4>
<ul>
<li>Median Price Target (upside vs. current market price): 43.12%</li>
<li>2024 YTD Performance: +4.80%</li>
<li>2023 Total Return: 71.93%</li>
<li>Market Cap: $99.64 billion</li>
<li>P/E Ratio (Next 12 Months): 11.4x</li>
</ul>
<h4 class="wp-block-heading">2. Advanced Micro Devices Inc. </h4>
<ul>
<li>Median Price Target (upside vs. current market price): 45.83%</li>
<li>2024 YTD Performance: -15.34%</li>
<li>2023 Total Return: 127.59%</li>
<li>Market Cap: $202.53 billion</li>
<li>P/E Ratio (Next 12 Months): 27.7x</li>
</ul>
<h4 class="wp-block-heading">1. Microchip Technology</h4>
<ul>
<li>Median Price Target (upside vs. current market price): 49.26%</li>
<li>2024 YTD Performance: -36.11%</li>
<li>2023 Total Return: 30.90%</li>
<li>Market Cap: $30.94 billion</li>
<li>P/E Ratio (Next 12 Months): 34.9x</li>
</ul>
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</ul>
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Shares of semiconductor companies are trading higher after the United States said it is opening an investigation into China's policies for the semiconductor industry. China's Commerce Ministry says the U.S. investigation will disrupt the chip industry and supply chains.

The most oversold stocks in the information technology sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the <a href="https://www.benzinga.com/topic/rsi">RSI is below 30</a>, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>.
Here's the latest list of major oversold players in this sector, having an RSI near or below 30.
<h3 class="wp-block-heading">Axcelis Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACLS#NASDAQ">ACLS</a>)</h3>
<ul>
<li>On Nov. 6, Axcelis Technologies posted better-than-expected quarterly earnings. President and CEO Russell Low commented, &#8220;Axcelis executed well in the third quarter with results relatively in-line with our expectations. While we anticipate a near term digestion of mature node capacity through the first half of 2025, customer engagement is strong and our long-term growth opportunity remains squarely intact highlighted by attractive secular growth in silicon carbide, a cyclical recovery in our memory and general mature markets, market share gains in advanced logic and regional penetration of the Japan market.&#8221; The company's stock fell around 9% over the past five days and has a <a href="https://www.benzinga.com/quote/ACLS">52-week low of $68.79</a>.</li>
<li>RSI Value: 29.60&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
<li>ACLS Price Action: Shares of Axcelis Technologies fell 2.5% to close at $69.18 on Thursday.</li>
<li>Benzinga Pro's real-time newsfeed alerted to<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent122024&amp;t=be2bearmibe3na1"> latest ACLS news</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent122024&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="912" height="838" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20042416/image-176.png" alt="" class="wp-image-701292" style="width:590px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20042416/image-176.png 912w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20042416/image-176-300x276.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20042416/image-176-768x706.png 768w" sizes="(max-width: 912px) 100vw, 912px" /></a></figure>
<h3 class="wp-block-heading">Applied Materials Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h3>
<ul>
<li>On Dec. 6, Wells Fargo analyst Joseph Quatrochi maintained the stock with an Overweight rating and lowered the price target from $220 to $210.. The company's stock fell around 4% over the past five days and <a href="https://www.benzinga.com/quote/AMAT">has a 52-week low</a> of $148.06.</li>
<li>RSI Value: 29.31</li>
<li>AMAT Price Action: Shares of Applied Materials fell 2.4% to close at $161.44 on Thursday.</li>
<li>Benzinga Pro&#8217;s charting tool helped identify the<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent122024&amp;t=be2bearmibe3na1"> trend in AMAT stock</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent122024&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="917" height="847" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20043922/image-177.png" alt="" class="wp-image-701321" style="width:615px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20043922/image-177.png 917w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20043922/image-177-300x277.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20043922/image-177-768x709.png 768w" sizes="(max-width: 917px) 100vw, 917px" /></a></figure>
<h3 class="wp-block-heading">Microchip Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>)</h3>
<ul>
<li>On Dec. 11, Stifel analyst Nathan Jones maintained A.O. Smith with a Buy and lowered the price target from $91 to $90. The company's stock fell around 14% over the past month and has a 52-week <a href="https://www.benzinga.com/quote/MCHP">low of $55.90</a>.</li>
<li>RSI Value: 27.86</li>
<li>MCHP Price Action: Shares of Microchip Technology fell 0.3% to close at $55.99 on Thursday.</li>
<li>Benzinga Pro&#8217;s signals feature notified of a potential <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent122024&amp;t=be2bearmibe3na1">breakout in MCHP shares</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent122024&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="908" height="833" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20044118/image-178.png" alt="" class="wp-image-701323" style="width:635px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20044118/image-178.png 908w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20044118/image-178-300x275.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20044118/image-178-768x705.png 768w" sizes="(max-width: 908px) 100vw, 908px" /></a></figure>
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During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a<a href="https://www.benzinga.com/yield-investments"> high dividend payout</a>.
Benzinga readers can review the latest analyst takes on their favorite stocks by visiting <a href="https://www.benzinga.com/analyst-stock-ratings">Analyst Stock Ratings</a> page. Traders can sort through Benzinga's extensive database of analyst ratings, including <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">by analyst accuracy</a>.
Below are the ratings of the most accurate analysts for three high-yielding stocks in the information technology sector.
<h3 class="wp-block-heading">Skyworks Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SWKS#NASDAQ">SWKS</a>)</h3>
<ul>
<li>Dividend Yield: 3.16%</li>
<li>Citigroup analyst Atif Malik maintained a Sell rating and cut the price target from $83 to $72 on Nov. 13. This analyst has an accuracy rate of 83%.</li>
<li>Piper Sandler analyst Harsh Kumar maintained a Neutral rating and cut the price target from $95 to $85 on Nov. 13. This analyst has an accuracy rate of 83%.</li>
<li>Recent News: On Nov. 13, the company reported adjusted EPS of $1.55, which beat the analyst consensus estimate of $1.52. Quarterly sales of $1.025 million were in line with the analyst consensus estimate.</li>
<li>Benzinga Pro's real-time newsfeed alerted to l<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121924&amp;t=be2bearmibe3na1">atest SWKS new</a>s. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121924&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="915" height="855" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081333/image-167.png" alt="" class="wp-image-699621" style="width:670px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081333/image-167.png 915w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081333/image-167-300x280.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081333/image-167-768x718.png 768w" sizes="(max-width: 915px) 100vw, 915px" /></a></figure>
<h3 class="wp-block-heading">Seagate Technology Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STX#NASDAQ">STX</a>)</h3>
<ul>
<li>Dividend Yield: 3.14%</li>
<li>Cantor Fitzgerald analyst C J Muse reiterated a Neutral rating with a price target of $125 on Oct. 23. This analyst has an accuracy rate of 72%.</li>
<li>Wedbush analyst Matt Bryson reiterated an Outperform rating with a price target of $150 on Oct. 23. This analyst has an accuracy rate of 82%.</li>
<li>Recent News: On Oct. 22, the company reported first-quarter revenue of $2.17 billion, beating the consensus of $2.119 billion.</li>
<li>Benzinga Pro's real-time newsfeed alerted to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121924&amp;t=be2bearmibe3na1">latest STX news</a> </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121924&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="900" height="835" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081406/image-168.png" alt="" class="wp-image-699624" style="width:592px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081406/image-168.png 900w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081406/image-168-300x278.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081406/image-168-768x713.png 768w" sizes="(max-width: 900px) 100vw, 900px" /></a></figure>
<h3 class="wp-block-heading">Microchip Technology Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>)</h3>
<ul>
<li>Dividend Yield: 3.24%</li>
<li>B of A Securities analyst Vivek Arya downgraded the stock from Neutral to Underperform and cut the price target from $80 to $65 on Dec. 16. This analyst has an accuracy rate of 81%.</li>
<li>Stifel analyst Tore Svanberg maintained a Buy rating and lowered the price target from $90 to $87 on Dec. 3. This analyst has an accuracy rate of 81%.</li>
<li>Recent News: On Dec. 3, Microchip cut revenue guidance for the December 2024 quarter and announced manufacturing restructuring plans after a deep dive into the company&#8217;s operations..</li>
<li>Benzinga Pro&#8217;s charting tool helped identify the<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121924&amp;t=be2bearmibe3na1"> trend in MCHP stock</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121924&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="918" height="837" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081447/image-169.png" alt="" class="wp-image-699625" style="width:692px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081447/image-169.png 918w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081447/image-169-300x274.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/19081447/image-169-768x700.png 768w" sizes="(max-width: 918px) 100vw, 918px" /></a></figure>
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Shares of semiconductor companies are trading lower amid overall market weakness following the Fed's rate decision to cut rates by 25 basis points.

The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) had a rocky year. While semiconductors at large posted historic gains through 2024&#8217;s first half, they <a href="https://www.benzinga.com/news/24/09/40754938/semiconductor-etfs-take-a-beating-dragged-lower-by-nvidia-amd-and-broadcom-stocks">erased much of their gains</a> in the late summer and fall. One industry analyst is optimistic about the industry&#8217;s prospects in 2025.
The Semiconductor Analyst: Bank of America analyst Vivek Arya named six of his top semiconductor picks for 2025:
<ul>
<li>NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) with a price target of $190.</li>
<li>Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) with a price target of $250.</li>
<li>Marvell Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) with a price target of $140.</li>
<li>Lam Research Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>) with a price target of $92.</li>
<li>ON Semiconductor Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>) with a price target of $90.</li>
<li>Cadence Design Systems Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>) with a price target of $365.</li>
</ul>
The <a href="https://www.benzinga.com/top-stories/24/12/42511580/microchip-technology-faces-multiple-headwinds-heading-into-2025-turns-analyst-bearish">analyst also downgraded</a> Microchip Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>).
The AI Boom: Arya cited Nvidia, Broadcom and Marvell as the leaders in AI. He says Lam Research&#8217;s capital expenditures will recover in 2025 along with the reduction of China headwinds. The analyst also thinks ON Semiconductor will recover from cyclical trends while Cadence Design will benefit from its resiliency.
The analyst sees the semiconductor industry&#8217;s upcycle lasting into 2025. He noted that past bullish cycles have lasted, on average, roughly 10 quarters, while current bullishness has only lasted five quarters.
Arya sees two major trends affecting the industry in 2025.
&#8220;In the first half, we expect the AI investments driven by AI training and scaling of models to continue, doubling down on the Nvidia Blackwell deployment ramps driven by cloud customers,&#8221; the analyst said. &#8220;At the same time, we expect trends for non-AI end markets to remain weak throughout 1H.&#8221;
Arya expects the CHIPS Act, enacted under President Joe Biden, to remain in place following the inauguration of President-elect Donald Trump. He expects all remaining funding to be dispensed in 2025.
The analyst sees the automotive and industrial industries as fueling semiconductor demand in the year&#8217;s second half.
&#8220;In the second half, we expect a pickup in auto/industrial semis as customer/channel inventories normalize (replenishment + easy comps), as well as a pickup in global auto production,&#8221; Arya said.
The analyst projected electric vehicle sales to reaccelerate 29% year-over-year.
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Microchip Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) has put the brakes on its application for US semiconductor grants <a href="https://www.benzinga.com/government/regulations/24/12/42344223/struggling-chipmaker-microchip-hits-pause-on-biden-semiconductor-subsidy">worth $162 million from the Chips Act</a>.
Microchip Technology is facing multiple headwinds into 2025, which are both industry and company-related, according to Bank of America Securities.
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/58a5e02943eaaa00018d9399/vivek-arya">Analyst Vivek Arya</a> downgraded the rating for Microchip Technology from Neutral to Underperform, while slashing the price target from $80 to $65.
The Microchip Technology Thesis: All chipmakers are facing the risk of a "severe downturn" due to weak global demand and high customer and channel inventories, Arya said in the downgrade note.
Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.
He added that Microchip Technology has even higher exposure to "industrial microcontrollers that saw (in hindsight) unsustainable pricing, take/pay contracts and excess inventory issues," which resulted in a more than 50% correction in quarterly sales from the peak in the June 2023 quarter.
Added to this are headwinds like its CEO transition, the announced closure of the Arizona fab and the return of CHIPS Act funds, all of which suggest "a lack of any meaningful demand recovery near-term," the analyst further stated.
Price Action: Shares of Microchip Technology had declined by 1.80% to $58.85 at the time of publication on Monday.
Read More: 
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</ul>
Image: Midjourney

Microchip Technology Faces 'Multiple Headwinds' Heading Into 2025, Analyst Turns Bearish

Microchip Technology shares are trading lower after B of A Securities downgraded the stock from Neutral to Underperform and lowered its price target from $80 to $65.

B of A Securities analyst Vivek Arya downgrades Microchip Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) from Neutral to Underperform and lowers the price target from $80 to $65.

Downgrades

B of A Securities Downgrades Microchip Technology to Underperform, Lowers Price Target to $65

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) founder Morris Chang told Reuters Monday that Intel&nbsp;Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)&nbsp;should have focused on developing its artificial intelligence moat instead of contract chipmaking.
Chang&#8217;s comments followed Intel chief Pat Gelsinger&#8217;s departure after he failed to impress the board with his turnaround efforts. Intel stock has plunged 58% year-to-date.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42420201/trumps-return-threatens-billions-in-us-chip-investment-from-taiwan-samsung" rel="noreferrer noopener">Trump&#8217;s Return Threatens Billions in US Chip Investment from Taiwan, Samsung</a>
During Chang&#8217;s autobiography launch event, he emphasized the need for a new strategy and CEO for Intel.
In November, Chang released his biography, which included Taiwan Semiconductor&#8217;s deals with Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) and how Intel abandoned an invitation to invest in Taiwan Semiconductor in the 1980s before becoming a key customer.
Gelsinger&#8217;s turnaround efforts involved making the fastest and most minor computer chips for other companies, but Taiwan Semiconductor eventually overtook this advantage. Taiwan Semiconductor stock surged over 89% year-to-date.
Chang said Intel lost or canceled contracts with major clients while aiming for ambitious manufacturing and AI capabilities.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/11034935/newplot-7.png" alt="" class="wp-image-686870" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/11034935/newplot-7.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/11034935/newplot-7-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
On Tuesday, S&amp;P Global Ratings downgraded Intel&#8217;s&nbsp;credit rating to <a target="_blank" href="https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3297923" rel="noreferrer noopener">&#8216;BBB&#8217; from &#8216;BBB+</a> citing weak business recovery and uncertainty following Gelsinger&#8217;s exit.
However, the firm expects Intel&#8217;s client computing segment to post growth after a modest recovery in 2025 backed by the PC refresh cycle and its Data Center and AI (DCAI) and Networking and Edge segments.
Meanwhile, Intel <a target="_blank" href="https://www.benzinga.com/news/global/24/12/42356853/intel-adds-former-asml-microchip-technology-leaders-to-board-amid-leadership-changes" rel="noreferrer noopener">tapped semiconductor veterans</a>&nbsp;Eric Meurice&nbsp;of ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and&nbsp;Steve Sanghi of Microchip Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) to its board. Intel has narrowed its eligible CEO list to include former director Lip-Bu Tan.
William Stein of Truist Securities and Cody Acree of Benchmark <a target="_blank" href="https://www.benzinga.com/24/12/42299694/intels-new-ceo-change-unlikely-to-help-gain-traction-versus-taiwan-semi-nvidia-analysts-say" rel="noreferrer noopener">recommended selling the entire</a> Intel company or parts of it, including splitting the manufacturing and products businesses and downsizing. They also noted that Intel&#8217;s current focus on separating its Products and Foundry businesses could mean forfeiting the $7.8 billion in U.S. chip subsidy.
Intel interim co-CEO David Zinsner expects <a target="_blank" href="https://www.benzinga.com/24/12/42344006/intel-interim-co-chief-expects-ceo-to-have-foundry-experience-stands-by-forecast" rel="noreferrer noopener">the next CEO</a> to be equipped with manufacturing and product skills.
Investors can gain exposure to Intel through First Trust Nasdaq Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXL#NASDAQ">FTXL</a>) and REX FANG &amp; Innovation Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>).
Price Action: INTC stock traded higher by 0.20% at $20.20 at premarket Wednesday.
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Image via Shutterstock

Media

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FEPI

FTXL

Taiwan Semi Founder Calls For New Strategy After Intel Chief's Departure

In the current session, Microchip Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) is trading at $61.49, after a 0.61% drop. Over the past month, the stock fell by 9.78%, and in the past year, by 32.42%. With performance like this, long-term shareholders are more likely to start looking into the company's price-to-earnings ratio. 

<img src="https://www.benzinga.com/files/images/story/2024/1733843709_0.png" alt="Past Year Chart" />

<h3>How Does Microchip Technology P/E Compare to Other Companies?</h3>
The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E could indicate that shareholders do not expect the stock to perform better in the future or it could mean that the company is undervalued. 
Compared to the aggregate P/E ratio of the 63.59 in the Semiconductors &amp; Semiconductor Equipment industry, Microchip Technology Inc. has a lower P/E ratio of 42.97. Shareholders might be inclined to think that the stock might perform worse than it's industry peers. It's also possible that the stock is undervalued. 

<img src="https://www.benzinga.com/files/images/story/2024/1733843709_1.png" alt="Guage" />

In summary, while the price-to-earnings ratio is a valuable tool for investors to evaluate a company's market performance, it should be used with caution. A low P/E ratio can be an indication of undervaluation, but it can also suggest weak growth prospects or financial instability. Moreover, the P/E ratio is just one of many metrics that investors should consider when making investment decisions, and it should be evaluated alongside other financial ratios, industry trends, and qualitative factors. By taking a comprehensive approach to analyzing a company's financial health, investors can make well-informed decisions that are more likely to lead to successful outcomes.

Intraday Update

P/E Ratio Insights for Microchip Technology

These eleven large-cap stocks were the worst performers in the last week. Are they in your portfolio?
<ol>
<li>Texas Pacific Land Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) stock tumbled 16.35%, probably due to OPEC's supply decision.</li>
<li>Microchip Technology Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) shares plummeted 13.03% after the company announced it halted its application for U.S. semiconductor government grants and cut revenue guidance <a href="https://www.benzinga.com//node/42344223" target="_blank" rel="noreferrer noopener">for the December 2024 quarter</a>.</li>
<li>Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) shares dived 13.01% after the company announced <a href="https://www.benzinga.com//node/42267115" target="_blank" rel="noreferrer noopener">the retirement of CEO Pat Gelsinger</a>.</li>
<li>KB Financial Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KB#NYSE">KB</a>) stock declined 12.68%.</li>
<li>Guidewire Software, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GWRE#NYSE">GWRE</a>) stock dipped 12.48% after it <a href="https://www.benzinga.com//node/42351588" target="_blank" rel="noreferrer noopener">reported first-quarter results</a>. Analysts revised their <a href="https://www.benzinga.com/quote/gwre/analyst-ratings" target="_blank" rel="noreferrer noopener">price forecast on the stock</a>.</li>
<li>Toast, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOST#NYSE">TOST</a>) stock fell 10.86%. It expanded its partnership with Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) to give restaurants more choices and provide guests <a href="https://www.benzinga.com//node/42347476" target="_blank" rel="noreferrer noopener">additional delivery options</a>. Several analysts <a href="https://www.benzinga.com//node/42268538" target="_blank" rel="noreferrer noopener">downgraded the stock</a>.</li>
<li>UnitedHealth Group Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) stock declined 9.93% following the fatal shooting of the insurance division's CEO Brian Thompson outside a Manhattan hotel where the company was <a href="https://www.benzinga.com//node/42365853" target="_blank" rel="noreferrer noopener">hosting its annual investor conference</a>.</li>
<li>Old Dominion Freight Line, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODFL#NASDAQ">ODFL</a>) stock fell 9.83% last week <a href="https://www.benzinga.com//node/42300450" target="_blank" rel="noreferrer noopener">due to the threat of new tariffs</a> on Canada, which could impact several sectors, including transportation companies.</li>
<li>Halliburton Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) stock lost 9.67% last week due to ongoing conflict in the Middle East affecting commodity prices.</li>
<li>POSCO HOLDINGS INC. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKX#NYSE">PKX</a>) shares decreased 9.67%, probably after South Korean President Yoon <a href="https://www.benzinga.com//node/42306717" target="_blank" rel="noreferrer noopener">Suk Yeol declared martial law</a>.</li>
<li>Rocket Lab USA, Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>) stock dipped 9.53% last week due to profit-taking in the sector. The company also stated it would announce the launch <a href="https://www.benzinga.com//node/42351319" target="_blank" rel="noreferrer noopener">window for its sixth synspective mission on December 18</a>.</li>
</ol>
Image via Shutterstock

Movers

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ODFL

RKLB

TOST

UBER

Intel, UnitedHealth And Rocket Lab Are Among Top 11 Large Cap Losers Last Week (Dec 2-Dec 6): Are The Others In Your Portfolio?

The most oversold stocks in the information technology sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the <a href="https://www.benzinga.com/topic/rsi">RSI is below 30</a>, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>.
Here's the latest list of major oversold players in this sector, having an RSI near or below 30.
<h3 class="wp-block-heading">ACM Research Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACMR#NASDAQ">ACMR</a>)</h3>
<ul>
<li>On Nov. 7, ACM Research reported better-than-expected third-quarter financial results and raised its FY24 revenue guidance. Also, the company announced a breakthrough for its flagship ultra-C Tahoe cleaning tool, which is expected to meet the technical requirements of advanced nodes for foundry, logic, and memory applications for front-end semiconductor manufacturing. The company's stock fell around 26% over the past month and has a <a href="https://www.benzinga.com/quote/ACMR">52-week low of $13.87</a>.</li>
<li>RSI Value: 21.58&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
<li>ACMR Price Action: Shares of ACM Research fell 14.9% to close at $14.10 on Thursday.</li>
<li>Benzinga Pro's real-time newsfeed alerted to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent120624&amp;t=be2bearmibe3na1">latest ACMR news</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent120624&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="871" height="842" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035039/Screenshot-2024-12-06-142010.png" alt="" class="wp-image-680176" style="width:650px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035039/Screenshot-2024-12-06-142010.png 871w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035039/Screenshot-2024-12-06-142010-300x290.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035039/Screenshot-2024-12-06-142010-768x742.png 768w" sizes="(max-width: 871px) 100vw, 871px" /></a></figure>
<h3 class="wp-block-heading">Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h3>
<ul>
<li>Intel interim co-CEO David Zinsner said he expects the next chief to have manufacturing and product expertise Reuters cites from the UBS technology conference on Wednesday. The company's stock fell around 12% over the past five days and <a href="https://www.benzinga.com/quote/INTC">has a 52-week low</a> of $18.51.</li>
<li>RSI Value: 28.82</li>
<li>INTC Price Action: Shares of Intel fell 5.3% to close at $20.80 on Thursday.</li>
<li>Benzinga Pro&#8217;s charting tool helped identify the <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent120624&amp;t=be2bearmibe3na1">trend in INTC stock</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent120624&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="917" height="844" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035226/Screenshot-2024-12-06-142125.png" alt="" class="wp-image-680179" style="width:614px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035226/Screenshot-2024-12-06-142125.png 917w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035226/Screenshot-2024-12-06-142125-300x276.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035226/Screenshot-2024-12-06-142125-768x707.png 768w" sizes="(max-width: 917px) 100vw, 917px" /></a></figure>
<h3 class="wp-block-heading">Microchip Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>)</h3>
<ul>
<li>On Dec. 2, Microchip Technology cut revenue guidance for the December 2024 quarter and announced manufacturing restructuring plans after a deep dive into the company&#8217;s operations. The update followed the Biden administration&#8217;s third crackdown on China&#8217;s semiconductor industry, which focused on advanced memory chips and chipmaking tools and affected chip equipment manufacturers. The company's stock fell around 15% over the past five days and has a 52-week<a href="https://www.benzinga.com/quote/MCHP"> low of $57.96</a>.</li>
<li>RSI Value: 25.44</li>
<li>MCHP Price Action: Shares of Microchip fell 5.5% to close at $58.25 on Thursday.</li>
<li>Benzinga Pro&#8217;s signals feature notified of a potential <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent120624&amp;t=be2bearmibe3na1">breakout in MCHP shares</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent120624&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="830" height="795" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035346/Screenshot-2024-12-06-142317.png" alt="" class="wp-image-680181" style="width:525px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035346/Screenshot-2024-12-06-142317.png 830w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035346/Screenshot-2024-12-06-142317-300x287.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/06035346/Screenshot-2024-12-06-142317-768x736.png 768w" sizes="(max-width: 830px) 100vw, 830px" /></a></figure>
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ACMR

Top 3 Tech Stocks That Are Preparing To Pump In Q4

Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) has appointed semiconductor industry veterans Eric Meurice and Steve Sanghi to its board of directors, the company announced Thursday, as it navigates through significant leadership transitions and market challenges.
What Happened: The appointments come days after CEO Pat Gelsinger&#8216;s <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42275410/intel-ceo-pat-gelsinger-forced-out-by-board-analysts-cheer-potential-strategy-shift-this-move-opens-the-door">reportedly forced departure</a>, due to the board&#8217;s frustration with his turnaround efforts. 
Under Gelsinger&#8217;s leadership, Intel&#8217;s stock declined over 56% year-to-date as the company struggled to compete with rivals like NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Taiwan Semiconductor Manufacturing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
Meurice, who led ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) from 2004 to 2013, oversaw a five-fold increase in the company&#8217;s market value and established the Customer Co-Investment Program, which included Intel&#8217;s investment in next-generation lithography technologies. 
Sanghi served as CEO of Microchip Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) for 30 years, during which the company achieved 121 consecutive profitable quarters and grew from a $10 million to $44 billion market value.
&#8220;Eric and Steve bring valuable perspectives as successful CEOs with proven track records,&#8221; said Frank Yeary, Intel&#8217;s interim executive chair, in the company&#8217;s press release.
See Also: <a href="https://www.benzinga.com/24/12/42356192/tim-cook-breaks-silence-on-defying-steve-jobs-design-philosophy-with-the-iphone-16s-camera-button-vision-pro-sales-airpods-disrupting-hearing-aids-and-whether-hell-lead-apple-into-the-next-era">Tim Cook Explains Why Apple Defied Steve Jobs&#8217; Design Philosophy With the iPhone 16&#8217;s Camera Button, Touches On Retirement Plans: &#8216;I&#8217;ll Do It Until…&#8217;</a>
Why It Matters: Currently, Intel is searching for a permanent CEO to replace Gelsinger. Recent reports suggest that former board member Lip-Bu Tan, known for his successful tenure at Cadence Design Systems Inc., is <a href="https://www.benzinga.com/24/12/42299694/intels-new-ceo-change-unlikely-to-help-gain-traction-versus-taiwan-semi-nvidia-analysts-say">among the candidates being considered</a>.
The appointments come as Intel works to regain its competitive edge in the semiconductor industry, particularly in AI-centric computing, while managing its manufacturing transformation and foundry business development.
Price Action: Intel&#8217;s stock closed at $20.80 on Thursday, down 5.28% for the day. In after-hours trading, the stock gained 0.15%. Year-to-date, Intel&#8217;s stock has dropped by 56.49%.
According to <a href="https://www.benzinga.com/quote/INTC/analyst-ratings">data from Benzinga Pro</a>, Intel has a consensus price target of $30.23, with a high of $66 and a low of $20. The most recent ratings from BofA, Northland Capital Markets, and Mizuho suggest an average target of $24, implying a 15.22% upside.
<figure class="wp-block-image size-large"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/05233837/Screenshot-2024-12-06-at-10.07.38%E2%80%AFAM-1024x382.png" alt="" class="wp-image-679929" /></figure>
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Intel Shakes Up Board With ASML And Microchip Technology Veterans Amid CEO Transition

Microchip Technology shares are trading lower after the company announced it halted its application for US semiconductor government grants.

Microchip Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) halted its application for U.S. semiconductor grants, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-12-03/microchip-pauses-chips-act-application-after-scaling-back-plans?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">cited</a> chief Steve Sanghi at a UBS conference Tuesday.
The chipmaker was a contender for $162 million in grants from the Chips Act.
Microchip stock plunged 29% year-to-date, emerging as one of the dampeners in the Philadelphia Stock Exchange Semiconductor Index.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42324175/applovin-likely-for-upside-from-ai-frenzy-higher-ad-budgets-analyst" rel="noreferrer noopener">Applovin Set To Capitalize On AI Frenzy, Ad Growth, Analyst Cautions On Near-Term Volatility</a>
Multiple Wall Street analysts <a target="_blank" href="https://www.benzinga.com/quote/MCHP/analyst-ratings" rel="noreferrer noopener">slashed their price targets</a> on the stock in November and December after its second quarterly print failed to impress the Street. Then CEO Ganesh Moorthy highlighted macro weakness for manufacturing businesses, including European Industrial and Automotive businesses.
The struggling chipmaker had to downsize its workforce twice at facilities in Oregon.
Earlier this week, Microchip slashed its third-quarter revenue guidance and announced restructuring plans, including closing its Tempe, Arizona, wafer fabrication facility, which will affect 500 workers.
Sanghi expects its December 2024 revenue to be close to the <a target="_blank" href="https://www.benzinga.com/news/guidance/24/12/42291157/microchip-slashes-q3-revenue-guidance-issues-restructuring-plan" rel="noreferrer noopener">low end of $1.025 billion</a> (down from the prior outlook of $1.025 billion-$1.095 billion) versus the analyst consensus of $1.090 billion due to slower turn orders than anticipated.
Sanghi cited high inventory levels and overcapacity as the reason for the facility&#8217;s shutdown, which could generate annual cash savings of $90 million.
He justified withdrawing from the U.S. subsidies, citing their minuscule contribution to factory costs and the commercial sense behind the facility&#8217;s construction.
Microchip&#8217;s downward guidance revision followed the U.S.&#8217;s third semiconductor embargo on China, which affected advanced chip equipment manufacturers. China retaliated by <a target="_blank" href="https://www.benzinga.com/news/global/24/12/42303132/china-retaliates-against-us-chip-sanctions-tightens-mineral-exports" rel="noreferrer noopener">exercising tighter controls</a> on the export of critical minerals used in&nbsp;advanced chip manufacturing, including gallium, germanium, and antimony.
Investors can gain exposure to Microchip through iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and First Trust Nasdaq Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXL#NASDAQ">FTXL</a>).
Price Action: MCHP stock is down 3.38% at $59.56 at the last check on Thursday.
Also Read:
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<li><a href="https://www.benzinga.com/24/12/42323943/amazon-emerges-as-top-analyst-pick-after-impressive-us-e-commerce-cyber-week-sales-growth" target="_blank" rel="noreferrer noopener">Amazon Emerges As Top Analyst Pick In Holiday Season</a></li>
</ul>

Government

Regulations

Struggling Chipmaker Microchip Hits Pause On Biden Semiconductor Subsidy

Stifel analyst Tore Svanberg maintains Microchip Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) with a Buy and lowers the price target from $90 to $87.

Stifel Maintains Buy on Microchip Technology, Lowers Price Target to $87

Keybanc analyst John Vinh maintains Microchip Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) with a Overweight and lowers the price target from $95 to $90.

Keybanc Maintains Overweight on Microchip Technology, Lowers Price Target to $90

On Monday, Microchip Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) cut revenue guidance for the December 2024 quarter and announced <a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/g42276958/microchip-technology-updates-december-2024-quarter-revenue-guidance-and-announces-manufacturing-re" rel="noreferrer noopener">manufacturing restructuring plans</a> after a deep dive into the company's operations.
The update followed the Biden administration's third crackdown on&nbsp;<a target="_blank" href="https://www.benzinga.com/government/regulations/24/12/42265847/biden-targets-china-with-new-chip-restrictions-nvidia-slides" rel="noreferrer noopener">China's semiconductor industry,</a> which focused on advanced memory chips and chipmaking tools and affected chip equipment manufacturers.
Chair and interim CEO Steve Sanghi expects its December 2024 revenue to be close to the low end of its original guidance of $1.025 billion (versus the analyst consensus of $1.090 billion) due to slower turn orders than anticipated.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42274713/generative-ai-backed-cybersecurity-stocks-cloudflare-fortinet-okta-likely-for-upside-analyst-says" rel="noreferrer noopener">Generative AI Backed Cybersecurity Stocks Cloudflare, Okta Have Near-Term Upside: Analyst</a>
The company previously expected <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/g41758163/microchip-technology-announces-financial-results-for-second-quarter-of-fiscal-year-2025" rel="noreferrer noopener">third-quarter revenue</a> of $1.025 billion-$1.095 billion.
It had announced an adjusted EPS outlook of $0.25-$0.35 (versus analyst consensus of $0.32). The company had projected an adjusted gross margin of 57.0%-59.0%
Sanghi said high inventory levels and ample capacity prompted the company to shut down its Tempe, Arizona wafer fabrication facility, also known as Fab 2.
Many of the process technologies that run in Fab 2 also run in its Oregon and Colorado factories, which both have adequate clean room space for expansion, Sanghi said.
He expects to be able to close the Fab 2 in the September 2025 quarter, by which time he hopes to generate annual cash savings of approximately $90 million.
Due to the high inventory of products manufactured in Fab 2, he expects P&amp;L savings from the shutdown at the start of the June 2026 quarter, based on a First-in-First-out basis.
Sanghi expects the Fab 2 closure to help it moderate its inventory levels beginning in the March 2025 quarter. The company is looking to let go of 500 employees under the restructuring, according to the Wall Street Journal <a target="_blank" href="https://www.wsj.com/business/microchip-technology-to-cut-jobs-sees-revenue-near-low-end-of-views-bf6393af" rel="noreferrer noopener">report</a>.
He expects near-term restructuring costs of $3 million to $8 million from these actions and an additional $15 million in other restructuring and shutdown costs.
Sanghi noted that Microchip's design-in momentum continues to be strong, driven by its Total System Solutions strategy and key market megatrends.
He expects to continue as the interim CEO amid lack of a definitive timeline for his successor.
The company tapped Chair Sanghi to <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/g42048710/ganesh-moorthy-retiring-as-chief-executive-officer-and-president-of-microchip-technology-incorpora" rel="noreferrer noopener">the additional position</a> of interim CEO as of November 18, taking over from Ganesh Moorthy, who retired.
Microchip Technology stock plunged 19% year-to-date. Despite an upbeat <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/41783839/these-analysts-slash-their-forecasts-on-microchip-technology-following-q2-results" rel="noreferrer noopener">second-quarter report</a>, Wall Street analysts slashed their price targets on the stock.
On November 5, the company reported second-quarter sales of $1.164 billion, topping the consensus estimate of $1.152 billion. It posted EPS of 46 cents, which beat the consensus estimate of 43 cents.
Moorthy had flagged inventory correction amid macro weakness for many manufacturing businesses, underlined by exacerbated weakness in its European business, which is concentrated with Industrial and Automotive customers.
Price Action: MCHP stock is down 1.74% at $69.10 premarket at last check Tuesday.
Also Read:
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<li><a href="https://www.benzinga.com/24/12/42272073/sofi-tech-could-become-american-express-of-fintech-analyst-says" target="_blank" rel="noreferrer noopener">This Analyst Downgrades Upstart But Says SoFi Tech Could Become ‘American Express' Of Fintech</a></li>
</ul>

Guidance

Microchip Slashes Q3 Revenue Guidance, Issues Restructuring Plan

Truist lowered the firm's price target on Microchip (MCHP) to $68 from $71 and keeps a Hold rating on the shares. The firm reiterated a cautious se...

Microchip price target lowered to $68 from $71 at Truist

Worst performing stocks for tax loss selling – Wolfe

The company said, "With the launch of its 12-button MTCH2120 touch controller, Microchip (MCHP) Technology is providing designers with a straightfo...

Microchip adds MTCH2120 to portfolio of turnkey capacitive touch controllers

The United States' proposed AI chip framework would block adversaries entirely, and give others quotas based on their alignment with the U.S., thre...

Nvidia's AI business colliding with U.S.-Chinese tensions, NY Times reports

Micron Technology Q1: Undervalued And Innovative

2024's top and bottom Nasdaq-100 performers includes NVDA, APP, INTC, MRNA, and more

Notable gainers among liquid option names this morning include Broadcom (AVGO) $230.11 +9.91, Amentum Holdings LLC (AMTM) $19.97 +0.80, Advanced Mi...

Early notable gainers among liquid option names on December 23rd

Bullish option flow detected in Microchip (MCHP) with 4,945 calls trading, 3x expected, and implied vol increasing over 1 point to 43.55%. 1/10 wee...

Microchip call volume above normal and directionally bullish

United States Trade Representative Katherine Tai announced the initiation of an investigation regarding China's "acts, policies, and practices rela...

USTR initiates Section 301 investigation on China's semiconductor 'targeting'

Unusual total active option classes on open include: Tilray (TLRY), Rumble (RUM), Microchip (MCHP), TeraWulf (WULF), Nu Holdings (NU), Lucid Group ...

Unusually active option classes on open December 24th

ACHC

AGCO

AMKR

AMTM

APLS

ATKR

BIIB

BMRN

BRBR

CLVT

CNXC

COLD

DINO

DXCM

EOSE

FIVN

FLNC

HXSCF

IONS

IPGP

LCID

MRNA

NEOG

NFLX

OPCH

PTEN

QDEL

QRVO

REGN

REXR

SEDG

SGRY

STNE

SYNA

TLRY

WULF

XRAY

Press Releases

Microchip Technology Increases Quarterly Cash Dividend 3.6% Year-Over-Year to 45.5 Cents Per Share

Earnings

Microchip Technology Announces Financial Results for Second Quarter of Fiscal Year 2025

General

Introducing a Wide Portfolio of IGBT 7 Power Devices Optimized for Applications Across Sustainability, E-Mobility and Data Centers

Microchip to Accelerate Real-time Edge AI with NVIDIA Holoscan

Management

Ganesh Moorthy Retiring as Chief Executive Officer and President of Microchip Technology Incorporated; Steve Sanghi Appointed as Interim Chief Executive Officer and President

Microchip Technology to Present at the UBS Global Technology and AI Conference

Microchip Technology Updates December 2024 Quarter Revenue Guidance, and Announces Manufacturing Restructuring Plans

Microchip Expands PolarFire® FPGA and SoC Solution Stacks with New Offerings for Medical Imaging and Smart Robotics

Integrated and Compact CAN FD System Basis Chip Solution for Space-Constrained Applications

Microchip Adds MTCH2120 to its Portfolio of Turnkey Capacitive Touch Controllers

Analog Devices

Astera Labs

Advanced Micro Devices, Inc. - Common Stock

Advanced Micro Devices

Arm Holdings plc - American Depositary Shares

ARM Holdings

ASE Technology Holding Co., Ltd. American Depositary Shares (each representing Two Common Shares)

Comments

Microchip Technology

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