Microchip Technology dips as Q4 profit forecast falls below estimates

Microchip Technology

06/02/2026 12:29

** Shares of Microchip Technology MCHP.O fall nearly 1.6% to $76.83 in premarket trading

** Chipmaker forecast fourth-quarter profit below Wall Street estimates on Thursday, raising concerns about the impact of a memory supply crunch on the semiconductor industry

** J.P. Morgan raises PT to $95 from $85; maintains "overweight" rating

** Brokerage says co could reach its long-term gross margin target by eliminating underutilization charges

** But says that realizing this benefit will likely take longer than the current forecast period, as fab utilization remains "quite low"

** 27 analysts rate the stock "buy" on average; their median PT is $90 - data compiled by LSEG

** As of last close, MCHP fell nearly 46% in the past 12 months

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))