Is Microchip Technology (MCHP) Quietly Repositioning Its Portfolio Around Ultra‑Efficient Power Monitoring Solutions?

• In recent days, Microchip Technology raised its December 2025 quarter guidance to the high end of prior ranges and launched ultra-low-power PAC1711 and PAC1811 digital power monitors priced from US$0.58 in high-volume orders, supported by a US$15.00 evaluation board and software tools.
• This combination of stronger near-term revenue and earnings guidance alongside new, power-efficient monitoring devices for computing, AI/ML, networking and e-mobility underscores how Microchip is trying to align its portfolio with fast-growing, energy-conscious applications while easing design-in through pin-compatible packaging and ready-to-use development resources.
• We’ll now examine how the raised December 2025 guidance and new low-power monitors affect Microchip’s longer-term investment narrative.

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Microchip Technology Investment Narrative Recap

To own Microchip Technology, you need to believe it can turn today’s cyclical rebound into durable earnings growth while managing high leverage and an uneven automotive recovery. The raised December 2025 quarter guidance modestly improves the near term picture, but does not yet resolve concerns about inventory normalization, margin pressure or the company’s ability to fully offset competition in higher performance microcontrollers and SoCs.

The launch of the ultra low power PAC1711 and PAC1811 power monitors is most relevant here, because it speaks directly to Microchip’s effort to deepen its role in power sensitive markets like computing, networking, AI/ML and e mobility. While the revenue impact of these specific parts is likely small on their own, products that are easy to design in, supported by low cost evaluation tools and priced from US$0.58 can matter over time for share gains in key customers and end markets, if broader demand recovers as expected.

Yet, despite the firmer guidance, investors should be aware that Microchip still faces elevated inventories and the risk that prolonged factory underutilization could...

Read the full narrative on Microchip Technology (it's free!)

Microchip Technology's narrative projects $6.6 billion revenue and $1.4 billion earnings by 2028. This requires 15.9% yearly revenue growth and about a $1.6 billion earnings increase from -$178.4 million today.

Uncover how Microchip Technology's forecasts yield a $73.64 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span roughly US$22 to US$90 per share, showing how far apart individual views can be. When you weigh that spread against Microchip’s raised but still modest near term guidance, it underlines why understanding the risks around inventory and margins is critical for thinking about the company’s longer term performance.

Explore 6 other fair value estimates on Microchip Technology - why the stock might be worth as much as 59% more than the current price!

Build Your Own Microchip Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Microchip Technology research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Microchip Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Microchip Technology's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.