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MCHP

Microchip Technology

NASDAQInformation TechnologySemiconductorsSnapshot 2026-05-08

$99.09-2.45%
Close 2026-05-08 · 1-day change
The bottom line

As of May 8, 2026, MCHP has a composite score of 3.8 and a confidence label of "medium," which reflects a change from "high." The mixed signal is influenced by various factors, including macroeconomic conditions and sector trends, with a total risk score of 64.9 and an elevated risk label.

Composite +3.8as of 2026-05-08

Price

Daily closes from AlphaVantage. Earnings/event dots are placed inline.

Close 2026-05-08
Daily closes. Scroll over the chart to zoom; click a range to reset.
EarningsMaterial event

Factor signals

Read top-to-bottom: thesis (is this a strong company over a 1–3 year hold), watch flags (has something changed worth re-reading), and position context (how violent might the path be). Each pill is a parallel diagnostic — never aggregated into a single score.

L1

Thesis

is this a strong company over a 1–3 year hold?
F1 · Recent financial performance
weak
Bottom 20% of information technology cohort
Why this rank
  • Direction share
    0.46
  • Slope (norm)
    0.87
  • Bonus
    0.00
Operating income, last 4 quarters ($M)
-1003289152
F2 · Value
Loss-making
Earnings yield undefined
Why this rank
Price
$99.09
TTM EPS
$-0.10
Earnings yield
Undefined / loss-making
P/E (TTM)
Undefined / loss-making

Trailing four: 2025-Q3, 2026-Q1, 2026-Q2, 2026-Q3

F3 · Earnings quality
Loss-making
Cash conversion undefined
Why this rank
TTM NI ($M)
-69
TTM CFO ($M)
911
CFO/NI
Undefined / loss-making
L2

Watch

has something changed worth re-reading?
F4 · Management stability
neutral
Mid-cohort activity· see deep-dive ↓
capital unfriendlyBottom 20% — net capital-unfriendly direction
Earnings setup · pre-print positioning
forward-looking
bullish strong10 PT revisions / 30d, avg 17.8% above currentfor period ending 2026-06-30
Why this setup
Consensus revisions

EPS estimate $0.59 → $0.59 (+0.3% / 30d). 1 raised, 0 cut, 23 covering analysts.

Rating actions

0 upgrades, 0 downgrades / 30d, 5 maintained. 77% of analysts rate Buy.

Price target activity

10 PT revisions / 30d. Avg target 17.8% above current price.

Material events

0 positive, 0 negative / 30d.

F4 · Management deep-dive — recent events, stated priorities, guidance track record
2

Stated priorities

3 priorityies extracted from earnings transcripts (as of 2026-05-08).

  1. 1.Maintain gross margin above 60%costmixed65% progress
    5/7: We expect non-GAAP gross margin of approximately 62.25% to 63.25%.
    Why this status

    Stated in 3 of last 3 quarters. Gross margin guidance increased from 59.5%-60.5% in 2026-Q2 to 62.25%-63.25% in 2026-Q3, indicating progress in maintaining margins above 60%. The trajectory is delivering on management's stated priority.

  2. 2.Revenue growth to $1.455 billion in 2026-Q4growthmixed65% progress
    5/7: We expect net sales for the June quarter to be in the range of approximately $1.442 billion to $1.469 billion.
    Why this status

    Stated in 3 of last 3 quarters. Revenue guidance increased from $1.260 billion in 2026-Q2 to $1.455 billion in 2026-Q3, showing a positive trajectory towards management's growth target.

  3. 3.Capex to remain below $100 million in FY 2026capital allocationwatchprovisional
    11/6: Capital expenditures for all of fiscal 2026 are expected to be at or below $100 million.
    Why this status

    Stated in 3 of last 3 quarters. Management has consistently guided that capital expenditures will remain below $100 million for fiscal 2026. This recurring focus indicates a commitment to disciplined capital allocation, though specific quarterly capex figures are not provided.

3

Guidance track record

Last 8 quarters of EPS guidance with actuals.

8 beat
Per-quarter detail
PeriodGuidanceActualResult
2020-06-30$0.13 – $0.31$0.78beat
2020-09-30$0.17 – $0.37$0.78beat
2020-12-31$0.38 – $0.45$0.81beat
2021-03-31$0.52 – $0.58$0.93beat
2021-06-30$0.75 – $0.79$0.99beat
2021-09-30$0.94 – $0.98$1.07beat
2022-03-31$0.66 – $0.68$1.35beat
2025-03-31$-0.24 – $-0.14$0.11beat

Beat / inside / miss is computed from the guided range when issued; for point-estimate quarters a ±5% tolerance band around the mid is used. surprise_pct_vs_mid is unstable when guided EPS is near zero, so it is not surfaced as a headline.

L3

Position context

how violent might the path be while I hold it?
Risk profile · realized
backward-looking
elevatedworst 12m loss −34%, typical day ±1.8%
Why this risk level

Recent vol — 30d annualized 48%; 252d 45%.

Drawdown — Max 1y −34%. Bad day move −4%.

Beta to sector ETF (XLK) 0.06 over 1y.

Liquidity — score 100/100.

Sub-scores — vol 25/100, drawdown 31/100, beta 6/100, earnings vol .

Sector regime
tailwind+15.9%sector vs S&P 500, 60d

via XLK

Tailwind = sector leading the S&P 500; headwind = trailing. Both can be constructive — historically, headwind regimes have averaged stronger forward returns than tailwind.

AI cycle regime · market-wide
2-axis classifier
HeatingManiaSquallCrisisEarnings →Mood ↑
HeatingE +0.13 · M +0.71
Single-axisCHASEz +2.97+1.285d

Context label only — describes the market state (e.g. real bear vs narrative panic, healthy uptrend vs late-stage froth). It is not a per-ticker buy/sell signal and does not predict factor performance.

Not investment advice. As of 2026-05-08.

3

What changed

The most important moves since the prior daily snapshot.

  1. label change · confidence_label
    severity 20

    Confidence changed from 'high' to 'medium'.

As of May 8, 2026, the confidence label for MCHP changed from 'high' to 'medium'. This reflects a label change with a severity score of 20.0. Additionally, the forward view indicates an unfavorable scenario with a composite delta estimate of -8.0 if next-quarter guidance is cut, and another unfavorable scenario with a composite delta estimate of -7.3 if the rates state reverses from -0.37 to +0.37.

as of 2026-05-08

4

Management scorecard

How management runs the business — capital, margins, balance sheet, and how reliably they guide and deliver.

Composite56.6 / 100
Capital allocation16
Earnings discipline60
Margin discipline12
Balance sheet58
Guidance credibility100
Post-call reaction32

Met or beat guidance 100% of the last 7 guided quarters · 102.6% avg surprise

as of 2026-05-08
4

What management is focused on

Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.

  • #1

    Maintain gross margin above 60%

    CostNew since 2026-05-07

    Management aims to keep gross margin above 60% through operational efficiencies and pricing strategies.

    Mixed

    Stated in 3 of last 3 quarters. Gross margin guidance increased from 59.5%-60.5% in 2026-Q2 to 62.25%-63.25% in 2026-Q3, indicating progress in maintaining margins above 60%. The trajectory is delivering on management's stated priority.

    Gross margin guidance increased from 59.5%-60.5% to 62.25%-63.25%
    65%
    CEO/CFO:We expect non-GAAP gross margin of approximately 62.25% to 63.25%.
    Multiple sourcesSource dated 2026-05-07Stated 3 of last 8 quartersFirst seen 2026-05-07
    Show history (3)
    • 2026-Q3Multiple sources

      We expect non-GAAP gross margin of approximately 62.25% to 63.25%.

    • 2026-Q2Multiple sources

      GAAP (5) Non-GAAP Adjustments (1) Non-GAAP (1) Gross Profit 59.5% to 60.5%

    • 2025-Q4Multiple sources

      Gross margin guidance was set at 59.5% to 60.5%.

  • #2

    Revenue growth to $1.455 billion in 2026-Q4

    GrowthNew since 2026-05-07

    Management targets revenue growth to reach $1.455 billion in the June 2026 quarter.

    Mixed

    Stated in 3 of last 3 quarters. Revenue guidance increased from $1.260 billion in 2026-Q2 to $1.455 billion in 2026-Q3, showing a positive trajectory towards management's growth target.

    Revenue guidance increased from $1.260 billion to $1.455 billion
    65%
    CEO/CFO:We expect net sales for the June quarter to be in the range of approximately $1.442 billion to $1.469 billion.
    Multiple sourcesSource dated 2026-05-07Stated 3 of last 8 quartersFirst seen 2026-05-07
    Show history (3)
    • 2026-Q3Multiple sources

      We expect net sales for the June quarter to be in the range of approximately $1.442 billion to $1.469 billion.

    • 2026-Q2Multiple sources

      We expect March quarter net sales of $1.260 billion plus or minus $20.0 million.

    • 2025-Q4Multiple sources

      We expect our net sales in the June 2025 quarter to be between $1.020 billion and $1.070 billion.

  • #3

    Capex to remain below $100 million in FY 2026

    Capital allocation

    Management plans to keep capital expenditures below $100 million for fiscal year 2026.

    Watch

    Stated in 3 of last 3 quarters. Management has consistently guided that capital expenditures will remain below $100 million for fiscal 2026. This recurring focus indicates a commitment to disciplined capital allocation, though specific quarterly capex figures are not provided.

    No score
    CEO/CFO:Capital expenditures for all of fiscal 2026 are expected to be at or below $100 million.
    Multiple sourcesSource dated 2025-11-06Stated 3 of last 8 quartersFirst seen 2025-11-06provisional
    Show history (3)
    • 2026-Q2Multiple sources

      Capital expenditures for all of fiscal 2026 are expected to be at or below $100 million.

    • 2026-Q1Multiple sources

      Capital expenditures for all of fiscal 2026 are expected to be at or below $100 million.

    • 2025-Q4Multiple sources

      Capital expenditures for all of fiscal 2026 are expected to be at or below $100 million.

as of 2026-05-08
5

How this stock is priced

Two ways to read price: against peers in the same business, and against the company's own history.

Compared to peers
12higher = cheaper

Looks more expensive than peers.

Compared to its own history
3higher = cheaper

Richer than its own typical valuation.

P/E
86.8x
EV/EBITDA
60.2x
FCF yield
1.5%

P/E over the last 5 years

69 monthly points
expensiveas of 2026-05-08
7

How this compares

A side-by-side read on composite, valuation, and risk versus peers.

StockCompositeValuationRisk
MCHP
Microchip Technology
+3.8expensiveelevated
NVDA
NVIDIA Corporation
+20fullmoderate
AAPL
Apple Inc
+19fullmoderate
MSFT
Microsoft
+27fairelevated
AVGO
Broadcom
+11expensiveelevated
8

Risk — how this stock moves

What a normal day looks like, what a bad day looks like, and the worst the last year has thrown at it.

A typical day
How much price usually moves either way.
1.8%
A bad day (95th %ile)
A rough but not unusual down day.
-3.5%
Worst 12-month loss
Deepest peak-to-trough drop in the last year.
-34.4%
Earnings-day move
How much price usually moves on earnings day.
elevatedas of 2026-05-08
9

What could change this view

Conditional scenarios — if X happens, the score would shift by about Y points. These are not predictions.

Upside triggers
  • If information_technology sector trend rises from +0.08 into 'improving' (>= +0.20)+5.0 pts
  • If next-quarter guidance is raised (currently NEW as of 2026-05-07)+4.0 pts
Downside triggers
  • If next-quarter guidance is cut (currently NEW as of 2026-05-07)-8.0 pts
  • If rates state reverses from -0.37 (negative) to +0.37 (positive)-7.3 pts
  • If information_technology sector trend falls from +0.08 into 'weakening' (<= -0.20)-5.0 pts
10

Material updates

Recent SEC 8-K filings ranked by likely impact, confidence, and recency.

  1. 2026-05-071d agoItem 2.02

    in this report on Form 8-K is being furnished as contemplated by General Instruction B(2) to Form 8-K and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. On May 7, 2026, we announced the results of our operations for the fourth quarter and fiscal year 2026. The complete release is attached to this report as Exhibit 99.1.

    earnings preannouncementscore 64
  2. 2026-02-112mo agoItem 1.01

    Entry into a Material Definitive Agreement. Purchase Agreement On February 9, 2026, Microchip Technology Incorporated (the “Company”) entered into a purchase agreement (the “Purchase Agreement”) with J.P. Morgan Securities LLC, BofA Securities, Inc. and Truist Securities, Inc., as representatives of the several initial purchasers (the “Initial Purchasers”), to issue and sell $800 million aggregate principal amount of its 0% Convertible Senior Notes due 2030 (the “Initial Notes”). In addition,…

    capital allocationpositivescore 9
  3. 2026-02-053mo agoItem 2.02

    in this report on Form 8-K is being furnished as contemplated by General Instruction B(2) to Form 8-K and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. On February 5, 2026, we announced the results of our operations for the third quarter of fiscal year 2026. The complete release is attached to this report as Exhibit 99.1.

    earnings preannouncementpositivescore 9
  4. 2026-02-112mo agoItem 2.03

    Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under

    capital allocationnegativescore 7
  5. 2026-02-112mo agoItem 8.01

    Other Events. On February 9, 2026, the Company issued a press release announcing its intention to offer, subject to market and other conditions, $600 million aggregate principal amount of the Notes in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. On February 10, 2026, the Company issued a press release annou…

    capital allocationneutralscore 7
11

Score history

The composite score, snapshot by snapshot. The dotted line at zero separates leaning-positive from leaning-negative.

60 snapshots
Data freshness · As of 2026-05-08 · Macro 2026-05-08 · Sector 2026-05-07 · Fundamentals 2026-02-05 · Price 2026-05-07 · Generated 2026-05-08 · Spec 2.3

Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.