Microchip Technology reported better-than-expected earnings for Q2, with margins rising to 66.5%. However, the company issued weak guidance due to macroeconomic headwinds and political risks, especially in its fast-growing data center segment, which accounts for 16.7% of sales. Growth is expected to slow as year-over-year comparisons become tougher and the semiconductor cycle turns unfavorable. The analyst rates Microchip Technology as a sell with a target price of $37-40, citing these challenges.
As of Nov 08, 2026 01:31 WIB, Microchip Technology (MCHP) is trading at USD 58.35 on Pluang, down 10.02% in one day. Despite the recent earnings beat, the stock faces selling pressure with a market cap of $31.76 billion and a dividend yield of 3.12%. The platform shows a strong buy interest at 95%, reflecting mixed investor sentiment amid the company's cautious outlook.
