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CHANDLER, AZ - Microchip Technology Incorporated (NASDAQ:MCHP), a leading provider of microcontroller and analog semiconductors with a market capitalization of $28.12 billion, announced today the appointment of Victor Peng to its Board of Directors, effective February 10, 2025. Peng, the former president of Advanced Micro Devices, Inc. (NASDAQ:AMD), brings a wealth of experience to Microchip’s board, having held a significant leadership role within the semiconductor industry. According to InvestingPro analysis, the company currently appears undervalued, with the stock trading near its 52-week low of $51.37.
The company’s Board of Directors, following the recommendation from its Nominating, Governance and Sustainability Committee, confirmed the appointment on Monday. As of this announcement, Peng has not been assigned to any board committees.
Microchip Technology clarified that there are no existing arrangements or understandings between Peng and any other persons that influenced his appointment. Furthermore, the company disclosed that there are no transactions involving Peng that would require disclosure under Item 404(a) of Regulation S-K.
Peng will receive compensation in accordance with the company’s standard compensation plan for non-employee directors. This plan is detailed in the "Director Compensation" section of Microchip Technology’s definitive proxy statement, which was filed with the Securities and Exchange Commission on July 8, 2024.
This strategic addition to Microchip’s Board comes as the semiconductor industry continues to evolve and face new challenges. With Peng’s background and experience, the company aims to strengthen its leadership and strategic direction.
The information regarding Peng’s appointment and related details are based on a press release statement filed with the SEC.
In other recent news, Microchip Technology has been the center of attention following a series of developments. The company recently launched its new 12-button touch controller, MTCH2120, a low-power, water-tolerant device designed to simplify the integration of touch button functionality into user interfaces. The MTCH2120, part of Microchip’s unified ecosystem, offers a robust touch experience unaffected by noise and moisture.
Additionally, Microchip has announced a restructuring plan, which includes closing its 200mm Fab 2 in Tempe, Arizona. This move is expected to improve inventory levels starting next quarter and yield annual cost savings of $90 million by mid-2026. Despite these changes, Needham has maintained its Buy rating on the company’s stock, while Stifel, KeyBanc Capital Markets, and Citi have revised their price targets but sustained positive ratings.
While the company’s third-quarter revenue is projected to hit the lower end of its previously issued guidance, analysts remain optimistic about Microchip’s long-term prospects. These recent developments underscore the company’s strategic efforts to navigate the changing market conditions and maintain its growth trajectory.
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