Stifel has reiterated a Buy rating on Microchip Technology (NASDAQ:MCHP) and held its price target at $90.00 as the semiconductor supplier approaches its upcoming earnings release. The research house’s forecast calls for fiscal third-quarter 2026 revenue of $1.185 billion, which it says would represent a 3.9% sequential increase, and non-GAAP earnings per share of $0.43. Those expectations follow two upward guidance revisions Microchip issued for the December quarter.
Looking beyond the December quarter, Stifel projects Microchip will guide to sequential growth in the March quarter. The firm points to the company’s revenue exposure across core end markets as a key supporting factor - noting that Industrial applications accounted for 48% of Microchip’s revenue and Data Center and Computing made up 19% as of fiscal year 2025. Stifel describes signs of recovery as broad-based across these core markets and cites that diversification in end-market exposure when assessing Microchip’s business strength.
Stifel’s $90 price target is equivalent to a 40.5x price-to-earnings multiple based on calendar year 2026 estimates, according to the firm. The multiple reflects Stifel’s view of Microchip’s earnings trajectory and the firm’s modeling for the coming year.
Microchip has drawn attention from other sell-side analysts as well. BofA Securities upgraded the stock from Neutral to Buy and raised its price target to $95, citing improved recovery momentum and upward revisions to estimates for future years. Cantor Fitzgerald maintained an Overweight rating while lifting its target to $100, pointing to results that came in above seasonal expectations.
On the product side, Microchip has expanded its maXTouch M1 family of touchscreen controllers, which are designed to support a range of automotive displays and emerging display technologies such as OLEDs and microLEDs. The company also introduced a new portfolio of 600V gate drivers intended for high-voltage power management applications, offering multiple configurations and current drive options.
The recent analyst activity in the sector extends beyond Microchip. BofA Securities upgraded Texas Instruments from Underperform to Neutral and set a new price target of $235 after in-line fourth-quarter results and a strong first-quarter outlook that the bank says implies a meaningful revenue increase.
Taken together, Stifel’s stance and the broader analyst interest underscore continued strategic moves and product developments across the semiconductor industry as companies position for recovery in key end markets.
Key points
- Stifel reiterates Buy and a $90 price target on Microchip, forecasting $1.185 billion in fiscal Q3 2026 revenue and $0.43 non-GAAP EPS.
- Firm expects sequential growth guidance for the March quarter, highlighting that 48% of revenue is tied to Industrial and 19% to Data Center and Computing (fiscal 2025 basis).
- Other analyst moves include upgrades and higher price targets from BofA and Cantor Fitzgerald; Microchip expanded touchscreen controllers and launched 600V gate drivers.
Risks and uncertainties
- Outcomes from Microchip’s upcoming earnings report and any accompanying guidance could diverge from current analyst expectations - affecting financial outlooks and valuations.
- Revenue concentration in Industrial (48%) and Data Center and Computing (19%) means that variability in those end markets could materially influence Microchip’s results.
- Analyst price targets and valuation multiples are based on calendar 2026 estimates; changes to those estimates would alter the implied multiples and valuation conclusions.