Goldman Sachs initiates Microchip Technology stock with Buy rating
Investing.com
Published Jul 10, 2025 06:30AM ET
Investing.com - Goldman Sachs initiated coverage on Microchip Technology (NASDAQ:MCHP), a $40.3 billion market cap semiconductor company, with a Buy rating and set a price target of $88.00. The stock has shown strong momentum with a 37% gain over the past six months.
The investment bank views Microchip as a leading global supplier of microcontrollers and analog products across diverse markets, positioning the company for growth as the sector recovers. According to InvestingPro , the company has maintained dividend payments for 24 consecutive years and raised them for 13 straight years, demonstrating consistent financial strength.
Goldman Sachs believes the microcontroller market is in the early stages of a recovery and is currently shipping at levels well below end demand, creating potential for growth that could exceed current Wall Street estimates.
The firm expressed confidence in Microchip's recovery prospects following the return of Steve Sanghi as CEO, noting that his leadership should help the company regain its operational footing.
Goldman Sachs stated that Microchip's recovery plan should position the company to normalize both its supply chain and customer relationships that were partially damaged during the market upturn.
In other recent news, Microchip Technology has announced several key developments. Steve Sanghi has been appointed as the permanent Chief Executive Officer and President, having served in these roles on an interim basis since November 2024. This leadership change comes as the company works to restore its market position amidst industry challenges. In collaboration with Nippon Chemi-Con Corporation and NetVision Co. Ltd., Microchip has launched the first ASA-ML camera-development platform for the Japanese automotive market, aiming to accelerate the adoption of a new standard in automotive camera connectivity.
On the financial front, Cantor Fitzgerald has maintained its Neutral rating for Microchip Technology with a price target of $70, noting potential improvements in gross margins as inventory reserve charges decline. Meanwhile, Truist Securities has raised its price target to $64 from $52, citing a faster-than-expected recovery in sales and margins. Additionally, Microchip has enhanced its TrustMANAGER platform with Firmware Over-the-Air update capabilities to help manufacturers comply with evolving cybersecurity regulations. These developments highlight Microchip's strategic initiatives to strengthen its market position and address industry demands.
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Written By: Investing.com
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