Latest news with #MicrochipTechnology
Yahoo
a day ago
- Business
- Yahoo
3 Large-Cap Stocks We Think Twice About
Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players. These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you find high-quality companies that can grow their earnings no matter what. Keeping that in mind, here are three large-cap stocks that may face near-term headwinds and some other investments you should consider instead. Microchip Technology (MCHP) Market Cap: $38.06 billion Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices. Why Do We Think MCHP Will Underperform? Annual sales declines of 3.6% for the past five years show its products and services struggled to connect with the market during this cycle Operating margin declined by 11.6 percentage points over the last five years as its sales cratered Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 16 percentage points Microchip Technology is trading at $70.53 per share, or 62.5x forward P/E. Dive into our free research report to see why there are better opportunities than MCHP. Danaher (DHR) Market Cap: $145.3 billion Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE:DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics. Why Does DHR Fall Short? Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.9% annually over the last two years Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth 7.9 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $203 per share, Danaher trades at 25.1x forward P/E. Check out our free in-depth research report to learn more about why DHR doesn't pass our bar. Regeneron (REGN) Market Cap: $59.03 billion Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ:REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders. Why Does REGN Give Us Pause? Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 6.7% for the last two years Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 12.3 percentage points Waning returns on capital imply its previous profit engines are losing steam Regeneron's stock price of $558.67 implies a valuation ratio of 14x forward P/E. To fully understand why you should be careful with REGN, check out our full research report (it's free). High-Quality Stocks for All Market Conditions When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
6 days ago
- Business
- Yahoo
Microchip Tech (MCHP) Sheds 6.7% as Chip Giant Signals Soft Outlook
We recently published . Microchip Technology Incorporated (NASDAQ:MCHP) is one of the worst performers on Wednesday. Microchip Technology declined by 6.66 percent on Wednesday to close at $70.25 apiece after a semiconductor giant signaled weaker demand and a cautious outlook for the industry. Microchip Technology Incorporated (NASDAQ:MCHP) dropped alongside its semiconductor peers, including STMicroelectronics N.V. (NYSE:STM), and NXP Semiconductors N.V. (NASDAQ:NXPI), among others, following giant player Texas Instruments' weaker-than-expected outlook for the remainder of the year. Analysts noted a tone shift from Texas Instruments' executives in relation to the recovery of the semiconductor industry, compared with previous quarters. Despite being a US-based company, Microchip Technology Incorporated (NASDAQ:MCHP) stands to bear the indirect impact of President Donald Trump's imposition of tariffs on various global industries, which it supplies. Microchip Technology Incorporated's (NASDAQ:MCHP) solutions serve more than 123,000 customers across industrial, automotive, consumer, aerospace, defense, communications, and computing markets. While we acknowledge the potential of MCHP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-07-2025
- Business
- Yahoo
Microchip Technology, onsemi, and Allegro MicroSystems Stocks Trade Down, What You Need To Know
What Happened? A number of stocks fell in the afternoon session after industry bellwether Texas Instruments signaled softer demand and issued a cautious outlook. Texas Instruments, a key chipmaker for various industries, sparked concern after it provided a weaker-than-expected forecast for the remainder of the year. Analysts on the company's earnings call noted a "tone shift" from executives regarding the semiconductor recovery cycle compared to previous quarters. The change in messaging from a major industry player created uncertainty about the health of the overall chip market. This cautious sentiment appeared to weigh on related stocks, as investors reassessed the sector's near-term growth prospects. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Analog Semiconductors company Microchip Technology (NASDAQ:MCHP) fell 5.9%. Is now the time to buy Microchip Technology? Access our full analysis report here, it's free. Analog Semiconductors company onsemi (NASDAQ:ON) fell 5%. Is now the time to buy onsemi? Access our full analysis report here, it's free. Processors and Graphics Chips company Allegro MicroSystems (NASDAQ:ALGM) fell 6.4%. Is now the time to buy Allegro MicroSystems? Access our full analysis report here, it's free. Zooming In On Allegro MicroSystems (ALGM) Allegro MicroSystems's shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 7 days ago when the stock dropped 3.3% as a cautious outlook from semiconductor equipment giant ASML sparked a broad sell-off across the sector, hitting chipmakers and equipment suppliers alike. The negative sentiment was triggered after the Dutch firm, whose complex machines are essential for producing advanced chips, warned it could no longer guarantee growth in 2026. ASML's management cited "increasing uncertainty driven by macro-economic and geopolitical developments," including the potential for new U.S. tariffs. As an industry bellwether, a company whose performance is seen as an indicator of the entire sector's health, ASML's comments are a key signal of future capital spending. The warning sent a chill through the market, as concerns grow that trade tensions could disrupt the highly globalized semiconductor supply chain and slow down investment from chip manufacturers. Allegro MicroSystems is up 48.5% since the beginning of the year, but at $33.88 per share, it is still trading 9.7% below its 52-week high of $37.51 from July 2025. Investors who bought $1,000 worth of Allegro MicroSystems's shares at the IPO in October 2020 would now be looking at an investment worth $1,914. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
23-07-2025
- Business
- Yahoo
Microchip Technology (MCHP) Surged Following the Improvement in Fundamentals
Aristotle Capital Management, LLC, an investment management company, released its 'Value Equity Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. Although the U.S. equity market started with volatility in the second quarter, it rebounded with strength, with the S&P 500 Index rising 10.94% during the quarter. The composite returned 4.88% gross of fees (4.75% net of fees) in the first quarter, outperforming the 3.78% return of the Russell 1000 Value Index and underperforming the 10.94% return of the S&P 500 Index. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Aristotle Capital Value Equity Strategy highlighted stocks such as Microchip Technology Incorporated (NASDAQ:MCHP). Microchip Technology Incorporated (NASDAQ:MCHP) manufactures and distributes smart, connected, and secure embedded control solutions. The one-month return of Microchip Technology Incorporated (NASDAQ:MCHP) was 5.11%, and its shares lost 13.06% of their value over the last 52 weeks. On July 22, 2025, Microchip Technology Incorporated (NASDAQ:MCHP) stock closed at $75.26 per share, with a market capitalization of $40.616 billion. Aristotle Capital Value Equity Strategy stated the following regarding Microchip Technology Incorporated (NASDAQ:MCHP) in its second quarter 2025 investor letter: "Microchip Technology Incorporated (NASDAQ:MCHP), the microcontroller (MCU) and analog semiconductor producer, was a top contributor for the quarter. After several quarters of underperformance driven by prolonged customer destocking, the company's fundamentals began to improve meaningfully, as returning CEO Steve Sanghi's turnaround plan is underway. Bookings showed signs of stabilization, supported by more balanced inventories across customers and distribution channels, as well as indications of recovering end-market demand. Operational execution also improved under the renewed leadership, with early benefits emerging from cost-saving initiatives—such as the closure of its Arizona wafer fabrication facility—and tighter inventory management. Microchip's long-standing customer relationships and commitment to extended product lifecycles continue to support recurring revenue and reduce design-in risk. Combined with its consistent record of strong FREE cash flow generation and shareholder returns, this disciplined approach reinforces our conviction in the company's ability to manage through industry cycles. Longer term, we believe Microchip remains well-positioned to gain share in 16- and 32-bit MCUs and areas including IoT, 5G infrastructure, autonomous vehicles and data centers." A semiconductor wafer at various stages of fabrication, showing the company's range of expertise. Microchip Technology Incorporated (NASDAQ:MCHP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Microchip Technology Incorporated (NASDAQ:MCHP) at the end of the first quarter, which was 44 in the previous quarter. In the March quarter, Microchip Technology Incorporated (NASDAQ:MCHP) reported net sales of $970.5 million, which was down 5.4% sequentially. While we acknowledge the potential of Microchip Technology Incorporated (NASDAQ:MCHP) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Microchip Technology Incorporated (NASDAQ:MCHP) and shared the list of best tech stocks to buy under $100. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
Microchip Technology's Quarterly Earnings Preview: What You Need to Know
Chandler, Arizona-based Microchip Technology Incorporated (MCHP) develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas and internationally. With a market cap of $40.4 billion, the company has two major product lines: Microcontrollers and Analog. MCHP is expected to report its Q1 earnings on Thursday, August 7, after the market closes. Ahead of the event, analysts expect MCHP to report an EPS of $0.17 per share, down 63.8% from a profit of $0.47 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in three of the past four quarters, while missing on one occasion. More News from Barchart It's Never 'Happened in the History of Tech to Any Company Before': OpenAI's Sam Altman Says ChatGPT is Growing at an Unprecedented Rate Ditch 'Basic' Nvidia and Buy This 'Unique' Chip Stock Instead Tesla Earnings, Powell Speech and Other Can't Miss Items this Week Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For the current year, analysts expect MCHP to report an EPS of $1.11, up 9.9% from $1.01 in fiscal 2024. MCHP stock has declined 18.3% over the past 52 weeks, underperforming the Technology Select Sector SPDR Fund's (XLK) 16.3% surge and the S&P 500 Index's ($SPX) 13.6% uptick during the same time frame. On May 8, MCHP shares grew 2.2% following the release of its Q4 earnings. The chipmaker posted revenue of $970.5 million in the period, topping Street forecasts. Furthermore, the company's adjusted EPS for the quarter came in at $0.04, surpassing the consensus estimates by 33.3%. For the quarter that ended in June, MCHP expects its EPS to range from 18 cents to 26 cents and its revenue to be in the range of $1.02 billion to $1.07 billion. Wall Street analysts are highly bullish about MCHP's stock, with a "Strong Buy" rating overall. Among 23 analysts covering the stock, 16 suggest a 'Strong Buy,' one recommends a 'Moderate Buy,' and six recommend a 'Hold.' While MCHP currently trades above its mean price target of $72.43, the Street-high target of $90 indicates a potential upswing of 20.4% from the current market price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
