Microchip Technology Inc. Stock Price, News & Analysis

Microchip Technology (NASDAQ:MCHP) reported Q1 fiscal 2026 results with net sales of $1.0755 billion, showing a 10.8% sequential increase but a 13.4% year-over-year decline. The company posted a GAAP net loss of $46.4 million ($0.09 per share), while non-GAAP net income reached $154.7 million ($0.27 per share).

Key highlights include significant inventory reduction of $124.4 million, with distribution inventory days reduced to 29 days. The company achieved strong operational metrics with 76% incremental non-GAAP gross margins and 82% incremental non-GAAP operating margins. For Q2 fiscal 2026, Microchip expects net sales of $1.130 billion ±$20.0 million, representing 5.1% sequential growth.

The Board declared a quarterly dividend of 45.5 cents per share for September 2025. The company is seeing improved demand conditions and reports the highest July bookings since July 2022.

Microchip Technology (Nasdaq: MCHP) has introduced the Adaptec SmartRAID 4300 series of NVMe RAID storage accelerators, featuring a novel disaggregated architecture that separates software and hardware components. The new solution demonstrates up to 7x increase in I/O performance compared to previous generations.

The accelerators support up to 32 CPU-attached x4 NVMe devices and 64 logical drives/RAID arrays, leveraging PCIe infrastructure for optimized data flows. Key features include hardware root of trust, secure boot/update, attestation, and SED support. The series is complemented by management tools including maxView web GUI, ARCCONF CLI, and support for DMTF standards-based management.

Microchip Technology (Nasdaq: MCHP) has entered into a strategic partnership with Delta Electronics to accelerate the development of Silicon Carbide (SiC) solutions for power management applications. The collaboration leverages Microchip's mSiC™ technology and Delta's smart energy-saving solutions to address the growing demand driven by AI and electrification trends.

The partnership provides Delta with priority access to Microchip's SiC solutions, technical training, R&D insights, and early product samples. Delta plans to implement Microchip's mSiC solutions in high-growth markets including AI, mobility, automation, and infrastructure. Microchip brings over 20 years of experience in SiC development, offering products such as SiC MOSFETs, diodes, and gate drivers.

Microchip Technology (Nasdaq: MCHP) has achieved two significant milestones in its space-qualified FPGA portfolio. The company announced MIL-STD-883 Class B and QML Class Q qualification for its RT PolarFire RTPF500ZT FPGA, along with the availability of engineering samples for the RT PolarFire System-on-Chip (SoC) FPGA.

The RT PolarFire devices feature nonvolatile technology that provides immunity to radiation-induced configuration memory upsets and consumes up to 50% less power than comparable SRAM-based alternatives. The SoC variant integrates a RISC-V-based microprocessor subsystem with FPGA architecture, targeting satellite processing and avionics applications.

Microchip Technology (NASDAQ: MCHP) announced that Steve Sanghi will continue as permanent CEO and President, transitioning from his interim role that began in November 2024. Sanghi, who previously served as CEO for nearly 30 years before retiring in 2021, will also maintain his position as Chair of the Board.

Lead independent director Matthew Chapman expressed the Board's confidence in Sanghi's leadership, particularly noting his implementation of a recovery plan aimed at restoring Microchip's industry leadership position. Sanghi acknowledged that while several recovery plan elements have been completed, achieving the company's long-term operating model will require sustained efforts.

Microchip Technology (Nasdaq: MCHP) has partnered with Nippon Chemi-Con and NetVision to launch the first ASA-ML camera development ecosystem for the Japanese automotive market. The collaboration centers on Microchip's VS775S single-port serializer/deserializer device, featuring Nippon Chemi-Con's CDTrans camera module and NetVision's NV061 development emulation board.

The ecosystem aims to accelerate the adoption of the Automotive Serdes Alliance Motion Link (ASA-ML) standard, supported by over 150 member companies including major automotive manufacturers like BMW, Ford, and GM. This initiative addresses the industry's shift from proprietary camera connectivity to open, interoperable solutions for Advanced Driver-Assistance Systems (ADAS), while supporting hardware-based link-layer security for emerging cybersecurity regulations.

The partnership enables Japanese OEMs to develop scalable, high-speed asymmetric data rate solutions with multi-vendor compatibility, crucial for L2 and L2+ autonomous-level applications.

Microchip Technology (Nasdaq: MCHP) has introduced the SA15-28 radiation-hardened DC-DC power converter and companion SF100-28 EMI filter for space applications. The 15W power converter features triple 5V outputs, operates from a 28V satellite bus, and is designed for harsh environments.

The SA15-28 boasts impressive specifications including operation across -55°C to +125°C temperature range and radiation tolerance up to 100 krad TID. The compact device weighs just 60 grams with a volume of 1.68 cubic inches, optimizing Size, Weight and Power (SWaP). The SF100-28 EMI filter supports power converters up to 100W and is compatible with Microchip's existing SA50 series and SF200 filter.

Microchip Technology (Nasdaq: MCHP) has enhanced its TrustMANAGER platform with new security features to support compliance with the European Cyber Resilience Act (CRA). The platform now includes secure code signing, Firmware Over-the-Air (FOTA) update delivery, and remote management of firmware images, cryptographic keys, and digital certificates.

The enhanced ECC608 TrustMANAGER, powered by Kudelski IoT's keySTREAM SaaS, provides secure authentication and helps manufacturers comply with evolving cybersecurity regulations. Additionally, the WINCS02PC Wi-Fi network controller module in the TrustMANAGER development kit is now certified for the Radio Equipment Directive (RED), which becomes mandatory for EU wireless devices on August 1, 2025.

Microchip Technology (MCHP) has introduced two new Digital Signal Controller families - dsPIC33AK512MPS512 and dsPIC33AK512MC510 - to enhance power conversion efficiency and control capabilities. The dsPIC33AK512MPS family features industry-leading 78 ps high-resolution PWMs and 40 Msps ADCs, specifically designed for AI server power supplies and data centers. Key features include up to 512 KB Flash, 200 MHz core speed, integrated security features, and compliance with ISO 26262 and IEC 61508 safety standards. The controllers support SiC and GaN-based DC-DC converters, offering enhanced efficiency for power conversion applications. The dsPIC33AK512MC family provides cost-optimized solutions for multi-motor control with 1.25 ns PWM resolution. Both families include double precision floating-point units and are supported by MPLAB Machine Learning Development Suite. Pricing starts at $1.50 per unit in volume.