With a market cap of $25.7 billion, Microchip Technology Incorporated (MCHP) engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas and internationally. Headquartered in Chandler, Arizona, the company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers, mixed-signal microprocessors, and specialized microcontrollers.

Shares of the semiconductor manufacturer have underperformed the broader market over the past year. MCHP stock has tanked 47.7% over the past 52 weeks and 16.7% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 10.2% over the past year but has dropped 3.9% in 2025.

Narrowing the focus, MCHP has underperformed the SPDR S&P Semiconductor ETF’s (XSD) 10.7% decline over the past 52 weeks but outperformed its 18.7% dip this year.

MCHP stock declined marginally following the release of its Q3 earnings on Feb. 6. The company reported an 11.8% year-over-year decline in its revenue, which came in at approximately $1 billion and missed the Street’s estimates. The company’s EPS came in at $0.13, failing to beat the Street’s forecast by 38.1%.

For the current year that ended in March 2025, analysts predict MCHP’s EPS will fall 78.3% year over year to $1. Moreover, the company has surpassed or met analysts’ consensus estimates in three of the past four quarters, missing on only one occasion.

Among the 21 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 15 “Strong Buy” ratings, one “Moderate Buy,” four “Holds,” and one “Moderate Sell.”

This configuration has remained unchanged in recent months.

On Apr. 21, Truist Financial Corporation (TFC) analyst William Stein lowered the price target on Microchip Technology to $43 from $56 while maintaining a “Hold” rating.

MCHP's mean price target of $58.76 indicates a premium of 23% from the current market prices. Its Street-high target of $75 suggests a robust 57% upside potential from current price levels.