Microchip Technology (NASDAQ:MCHP) Shares Gap Up After Analyst Upgrade

Microchip Technology Incorporated (NASDAQ:MCHP) gapped up before the market opened on Tuesday after JPMorgan Chase & Co. raised their price target on the stock from $77.00 to $85.00. The stock had previously closed at $67.06, but opened at $70.56. JPMorgan Chase & Co. currently has an overweight rating on the stock. Microchip Technology shares last traded at $72.3330, with a volume of 2,652,845 shares trading hands.

A number of other brokerages have also recently commented on MCHP. Wells Fargo & Company dropped their target price on shares of Microchip Technology from $60.00 to $58.00 and set an “equal weight” rating on the stock in a report on Friday, November 7th. Morgan Stanley lifted their price target on shares of Microchip Technology from $68.00 to $69.00 and gave the company an “equal weight” rating in a research report on Tuesday. Needham & Company LLC upped their price objective on shares of Microchip Technology from $75.00 to $77.00 and gave the stock a “buy” rating in a report on Tuesday. Cantor Fitzgerald upgraded shares of Microchip Technology from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $65.00 to $85.00 in a report on Tuesday, December 16th. Finally, Stifel Nicolaus set a $80.00 price target on Microchip Technology and gave the stock a “buy” rating in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $77.24.

Insiders Place Their Bets

In related news, CFO James Eric Bjornholt sold 4,292 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total value of $216,273.88. Following the transaction, the chief financial officer directly owned 30,089 shares of the company’s stock, valued at approximately $1,516,184.71. This represents a 12.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 1.94% of the stock is currently owned by insiders.

Microchip Technology News Roundup

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

• Positive Sentiment: Company guidance: Microchip raised Q3 net sales guidance to about $1,185 million (well above its prior range), signaling the December quarter topped earlier expectations—this is the core catalyst behind the rally. Microchip Technology Provides Q3 Fiscal 2026 Business Update
• Positive Sentiment: Pre‑announcement / beat signal: The company indicated it exceeded net‑sales guidance for the December quarter, a pre‑announcement that drove the intraday surge as investors priced in a stronger revenue/earnings print. Why Microchip Technology Rallied Double-Digits Today
• Positive Sentiment: Demand improvement: Management cited strong bookings and a recovering set of end markets (and a healthy March‑quarter backlog), supporting the view that revenue momentum is returning. Microchip Technology raises Q3 revenue forecast on strong bookings
• Positive Sentiment: Analyst reactions: Multiple firms raised targets or reaffirmed buy ratings (JPMorgan raised its PT to $85 with an overweight, Rosenblatt kept a buy at $80, Needham lifted its PT), providing dealer support and helping sustain the rally. Benzinga coverage of analyst moves
• Neutral Sentiment: Mixed analyst views: Morgan Stanley nudged its target higher to $69 but kept an equal‑weight rating, showing not all shops are fully convinced the recovery is durable—expect some divergence in sell‑side sentiment. Benzinga on Morgan Stanley price target change
• Neutral Sentiment: Valuation/preview coverage: Market commentary highlights a mixed valuation picture despite the pop; some analysts still point to cyclicality and past margin pressures when modeling forward returns. Assessing Microchip Technology (MCHP) Valuation

Institutional Investors Weigh In On Microchip Technology

Several institutional investors have recently modified their holdings of MCHP. Vanguard Group Inc. raised its position in Microchip Technology by 2.1% in the 3rd quarter. Vanguard Group Inc. now owns 72,075,558 shares of the semiconductor company’s stock worth $4,628,692,000 after buying an additional 1,507,554 shares during the last quarter. State Street Corp grew its stake in shares of Microchip Technology by 8.5% in the second quarter. State Street Corp now owns 31,888,814 shares of the semiconductor company’s stock worth $2,244,016,000 after acquiring an additional 2,489,258 shares during the period. Invesco Ltd. raised its holdings in shares of Microchip Technology by 10.4% during the second quarter. Invesco Ltd. now owns 18,452,546 shares of the semiconductor company’s stock valued at $1,298,506,000 after purchasing an additional 1,745,515 shares during the last quarter. Boston Partners raised its holdings in shares of Microchip Technology by 9.5% during the third quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company’s stock valued at $1,044,024,000 after purchasing an additional 1,406,885 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in Microchip Technology by 2.4% during the second quarter. Geode Capital Management LLC now owns 14,842,341 shares of the semiconductor company’s stock valued at $1,040,544,000 after purchasing an additional 343,210 shares during the period. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Stock Up 11.6%

The company has a quick ratio of 1.20, a current ratio of 2.25 and a debt-to-equity ratio of 0.80. The company has a market cap of $40.46 billion, a PE ratio of -166.38, a PEG ratio of 2.10 and a beta of 1.46. The company’s fifty day moving average is $60.66 and its 200-day moving average is $65.00.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.02. The firm had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.13 billion. Microchip Technology had a positive return on equity of 5.21% and a negative net margin of 4.39%.The company’s revenue was down 2.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.46 EPS. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. On average, analysts predict that Microchip Technology Incorporated will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 9th. Stockholders of record on Monday, November 24th were given a dividend of $0.455 per share. The ex-dividend date of this dividend was Monday, November 24th. This represents a $1.82 annualized dividend and a dividend yield of 2.4%. Microchip Technology’s dividend payout ratio is presently -404.44%.

Microchip Technology Company Profile

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.