Stock market today: Nasdaq closes above 23,000 for first time as tech rebounds
Microchip Technology Inc . (NASDAQ:MCHP) stock has experienced a notable downturn, reaching a 52-week low of $54.45, marking a 46% decline from its 52-week high of $100.56. This latest price point reflects a significant retreat from more favorable positions in the past year, with the company’s shares witnessing a 1-year decline of 33.34%. Despite the decline, the company maintains a strong dividend tradition, having raised its dividend for 13 consecutive years, with a current yield of 3.25%. InvestingPro analysis suggests the stock is currently trading below its Fair Value. Investors are closely monitoring the semiconductor industry as Microchip Technology navigates through the challenges that have led to this recent low, including global supply chain issues and shifts in demand within the tech sector. The company’s performance is being scrutinized as market participants consider the broader economic indicators that are influencing tech stocks across the board. Analyst targets range from $56 to $95, suggesting potential upside, though InvestingPro subscribers can access 12 additional key insights about MCHP’s financial health and future prospects through the comprehensive Pro Research Report.
In other recent news, Microchip Technology has unveiled the MTCH2120 touch controller, a new addition to its portfolio of touch solutions. The company has also revised its revenue outlook for the December quarter to approximately $1.025 billion due to slower-than-expected turn orders. As part of its restructuring plans, Microchip Technology announced the closure of its Tempe wafer fabrication facility, which is expected to yield annual cost savings of around $90 million starting mid-2026. Amid these developments, CEO Steve Sanghi has committed to his role indefinitely to ensure stability.
Analyst firms including Needham, Stifel, and KeyBanc Capital Markets have maintained their positive ratings on Microchip, with Needham sustaining its buy rating and $85.00 price target. Stifel has recalibrated the 12-month price target to $87, while KeyBanc Capital Markets reduced its price target to $90 from $95. Citi also reaffirmed its Buy rating on Microchip Technology with a price target of $82.00, expressing confidence in the company’s resilience despite the revised revenue outlook and impending restructuring. These are the recent developments in Microchip Technology’s business landscape.
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