Latest news with #MicrochipTechnologyInc
Yahoo
15-05-2025
- Business
- Yahoo
5 Technology Stocks Powering S&P 500 ETF
The S&P 500 returned to positive territory in 2025, wiping out all its losses, led by technology stocks. The stunning comeback occurred just over a month after the market had tumbled to near bear market levels on April 8, courtesy of President Trump's aggressive tariff plans. Per Bespoke Invest, the S&P 500 erased its 15% year-to-date loss in less than six weeks, marking the fastest recovery since 1982 (read: S&P 500 Makes the Fastest Recovery Since 1982: 5 Best ETFs).The 90-day U.S.-China trade truce and strong earnings, especially from tech giants, renewed market S&P 500 ETF Trust SPY, the proxy version of the S&P 500 Index, is up 0.4% this year. While many stocks powered the ETF, technology has been the clear leader in the latest leg of the rally. Here, we have highlighted five technology stocks that have led the way higher in the ETF over the past month and have a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold). These are Microchip Technology Inc. MCHP, Seagate Technology STX, Palantir Technologies Inc. PLTR, Micron Technology MU and Arista Networks Inc. solid trend is likely to continue in the months ahead as Wall Street strategists are turning increasingly bullish once again on the S&P 500 outlook for the year. Goldman Sachs raised its year-end target for the S&P 500 to 6,100 from 5,900. Yardeni Research also lifted its forecast to 6,500 from 6,000, implying an additional 11% gain from current levels. Both firms cited easing concerns over a major economic slowdown as a key driver behind their inflation and jobs data added another reason to cheer. U.S. inflation in April cooled to the lowest level since February 2021. The Consumer Price Index, which tracks a variety of costs throughout the economy, rose 2.3% year over year in April, down slightly from 2.4% in March. The softer-than-expected data bolstered the case for the easing by the Federal April jobs data showed that the U.S. labor market remained resilient amid the tariff chaos. The economy added better-than-expected 177,000 jobs while the unemployment rate held steady at 4.2%, providing further assurance about the economy's health. Let's take a closer look at the fundamentals of SPY. SPDR S&P 500 ETF Trust holds 503 stocks in its basket, with each accounting for no more than 6.7% of the assets. This suggests a nice balance across each security and prevents heavy concentration. The fund is widely spread across sectors, with information technology, financials, and consumer discretionary accounting for a double-digit allocation S&P 500 ETF Trust has an AUM of $576.1 billion and charges 9 bps in fees per year. It trades in an average daily volume of 66 million shares and has a Zacks ETF Rank #2 with a Medium risk outlook (see:all the Large Cap Blend ETFs here).Below, we have highlighted the abovementioned five best-performing stocks in the ETF. Microchip Technology develops and manufactures microcontrollers, memory and analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks. The stock has soared nearly 60% in a month and saw a positive earnings estimate revision of a couple of cents for the fiscal year (ending March 2026) over the past seven days. Its earnings are expected to decline 13% this fiscal year. Microchip Technology has a Zacks Rank #3 .Seagate Technology is a leading provider of data storage technology and infrastructure solutions. The stock has jumped 44% in a month. It saw a solid earnings estimate revision of 30 cents over the past month for the fiscal year (ending June 2025) and has an estimated growth rate of 510%. Seagate Technology has a Zacks Rank #3 (read: Tech ETFs at the Forefront of the Current Market Rally).Palantir Technologies builds and deploys software platforms for the intelligence community, principally in the United States. The stock has soared about 40% in a month. It saw solid earnings estimate revision of 3 cents over the past month for this year and has an estimated growth of 43.9%. Palantir Technologies has a Zacks Rank # Technology has established itself as one of the leading worldwide providers of semiconductor memory solutions. The stock was up more than 37% over the past month. It saw positive earnings estimate revision of 8 cents for fiscal year (ending Aug 2025) over the past seven days and has an estimated earnings growth of 433.1%. MU has a Zacks Rank # Networks is engaged in providing cloud networking solutions for data centers and cloud computing environments. The stock has gained about 37% in a month. It saw solid earnings estimate revision of 9 cents over the past month for this year and has an estimated growth rate of 12.78%. Arista Networks carries a Zacks Rank #2 . You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Arista Networks, Inc. (ANET) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
10-05-2025
- Business
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Why Microchip Technology Inc. (MCHP) Soared On Friday
We recently published a list of In this article, we are going to take a look at where Microchip Technology Inc. (NASDAQ:MCHP) stands against other Friday's best-performing stocks. The stock market edged lower on the last day of the trading week as investors sold off positions to mitigate risks from the anticipated trade talks between the US and China this weekend. The Dow Jones and the S&P 500 both fell by 0.29 percent and 0.07 percent, respectively. In contrast, the tech-heavy Nasdaq ended flat. Beyond the major indices, 10 companies traded strongly, finishing with as much as double-digit gains, thanks to the continued positive earnings performance and optimistic outlooks. In this article, we name Friday's 10 best-performing stocks and detail the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A semiconductor wafer at various stages of fabrication, showing the company's range of expertise. Microchip Technology saw its share prices jump by 12.6 percent on Friday to end at $55.33 apiece as investors loaded up positions after earning a rating upgrade from Bank of America. In its market note, Bank of America raised Microchip Technology Inc. (NASDAQ:MCHP) to Neutral from Underperform amid the latter's early signs of sales recovery, aggressive cost-cutting measures, and renewed strategic focus under its returning CEO. 'The return of well-regarded prior CEO Steve Sanghi has greatly enhanced the level of restructuring urgency and customer/product focus at Microchip,' Bank of America said. Additionally, the investment firm raised its price target for Microchip Technology Inc. (NASDAQ:MCHP) to $56 from $44 previously, albeit just a 1.2 percent upside from its latest closing price. Still, it said that it was confident about the semiconductor manufacturer's earnings potential. 'Even a modest sales rebound could translate into outsized earnings leverage,' it said. In the first quarter of the year, the company swung to a net loss attributable to shareholders of $156.8 million from a $154.7 million net profit in the same period last year. Net sales dropped by 27 percent to $970.5 million from $1.325 billion year-on-year. Overall, MCHP ranks 4th on our list of Friday's best-performing stocks. While we acknowledge the potential of MCHP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MCHP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. 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
09-05-2025
- Business
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Microchip Technology Inc (MCHP) Q4 2025 Earnings Call Highlights: Navigating Challenges with ...
Net Sales: $970.5 million in the March quarter, down 5.4% sequentially. Non-GAAP Gross Margin: 52% in the March quarter. Non-GAAP Operating Expenses: 38% of sales in the March quarter. Non-GAAP Net Income: $61.4 million in the March quarter. Non-GAAP EPS: $0.11 per diluted share in the March quarter. GAAP Gross Margin: 51.6% in the March quarter. GAAP Net Loss: $156.8 million or $0.29 per share in the March quarter. Fiscal Year 2025 Net Sales: $4.42 billion, down 42.3% from fiscal year 2024. Non-GAAP Fiscal Year 2025 Gross Margin: 57%. Non-GAAP Fiscal Year 2025 Net Income: $708.8 million. Non-GAAP Fiscal Year 2025 EPS: $1.31 per diluted share. Cash Flow from Operating Activities: $205.9 million in the March quarter. Adjusted Free Cash Flow: $182.6 million in the March quarter. Capital Expenditures: $14.2 million in the March quarter. Inventory: 251 days at the end of March quarter, down 15 days from prior quarter. Debt Reduction: Total debt decreased by $1.125 billion in the March quarter. Guidance for June Quarter Net Sales: Expected to be $1.045 billion, plus or minus $25 million. Guidance for June Quarter Non-GAAP Gross Margin: Expected between 52.2% and 54.2% of sales. Guidance for June Quarter Non-GAAP EPS: Expected between $0.18 and $0.26. Warning! GuruFocus has detected 6 Warning Sign with MCHP. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Microchip Technology Inc (NASDAQ:MCHP) has successfully implemented a 9-point recovery plan, including resizing its manufacturing footprint and reducing inventory levels. The company reported a significant improvement in customer relationships, restoring 78% of previously deteriorated relationships to approved or preferred status. Microchip Technology Inc (NASDAQ:MCHP) has seen a substantial increase in bookings, with a book-to-bill ratio of 1.07, indicating strong demand recovery. The company is focusing on strategic initiatives in next-generation technologies, such as AI and network connectivity, which are expected to drive future growth. Microchip Technology Inc (NASDAQ:MCHP) is committed to returning 100% of its adjusted free cash flow to investors in the form of dividends, demonstrating strong shareholder commitment. Net sales for the March quarter were down 5.4% sequentially and 26.8% year-over-year, reflecting ongoing challenges in the market. The company reported a GAAP net loss attributable to common shareholders of $156.8 million in the March quarter. Microchip Technology Inc (NASDAQ:MCHP) is facing headwinds from underutilization charges and inventory reserve charges, impacting gross margins. The company has undergone a global layoff of approximately 10% of its employees to reduce operating expenses. There is uncertainty regarding the impact of tariffs and global economic conditions on future demand and revenue growth. Q: Can you elaborate on the demand signals you're seeing and address concerns about potential pull-ins due to tariffs? A: Steve Sanghi, Executive Chairman of the Board: The demand signals began improving in early January, with bookings significantly higher each month compared to the previous quarter. This improvement is not related to tariffs, as semiconductors are largely exempt. The increase is driven by inventory depletion at customers and distributors, and new product designs turning into production. Q: How is the recovery in demand distributed across your key end markets? A: Steve Sanghi, Executive Chairman of the Board: Aerospace and defense have notably increased, now comprising 18% of our business, driven by high defense budgets and increased NATO spending. Other markets like industrial, automotive, and consumer are also recovering, supported by inventory depletion and new product designs. Q: What impact do tariffs have on your business, and how are you managing potential risks? A: Steve Sanghi, Executive Chairman of the Board: Direct tariffs on our products are negligible as we have moved production from China to other countries. Indirect effects on the global economy are uncertain, but we have modeled potential impacts and are prepared to adjust manufacturing accordingly. Q: Can you discuss the margin leverage as revenue recovers and the impact of current headwinds? A: J. Bjornholt, CFO: Current headwinds include underutilization charges and inventory reserve charges. As revenue increases and inventory reduces, these charges will decrease, leading to significant margin leverage. We expect this improvement to become more pronounced as the fiscal year progresses. Q: How do you view your market share dynamics in the microcontroller market, and do you expect to gain share? A: Steve Sanghi, Executive Chairman of the Board: We expect to gain market share as we recover. Our guidance for the June quarter reflects this, and we anticipate increased bookings and purchasing from microcontroller customers who have been sitting on significant inventory. Q: What changes have you made to improve product development efficiency, and when will investors see the benefits? A: Richard Simoncic, Senior VP: We've introduced tools like the MPLAB AI coding assistant to enhance customer productivity, reducing development time by over 40%. These improvements aim to make Microchip products easier to design in, with benefits expected to materialize in the coming years. Q: How are you addressing the competitive landscape in China, and what is your strategy for the China market? A: Steve Sanghi, Executive Chairman of the Board: We are revising our China strategy due to changes in the definition of "Made in China." We aim to provide Western-quality products under a local brand to meet customer preferences, and we are adjusting our production locations accordingly. Q: Can you provide an update on your capital return program and the sustainability of your dividend? A: Steve Sanghi, Executive Chairman of the Board: We are committed to maintaining our dividend, supported by improved financial performance and cash flow. Recent actions, including a $1.45 billion mandatory convertible preferred transaction, have strengthened our balance sheet and reaffirmed our investment-grade rating. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
28-04-2025
- Business
- Yahoo
5 Stocks That Powered Nasdaq ETF's Outperformance Last Week
Wall Street rebounded strongly last week on signs of de-escalation in the U.S.-China trade war and Trump's assurance of not removing Federal Reserve Chair Jerome Powell. The rally was broad-based, but the technology sector took the lead. The tech-heavy Nasdaq Composite Index outperformed, gaining 6.7% last week. The S&P 500 climbed 4.6% while the Dow Jones gained 2.5%. With last week's gains, the Nasdaq Index returned to positive territory in April. Fidelity Nasdaq Composite Index ETF ONEQ, which tracks the Nasdaq Composite Index, and Invesco QQQ QQQ, which serves as a proxy to the index but tracks the Nasdaq 100 Index, gained more than 9% most of the stocks in the QQQ ETF portfolio have rebounded strongly, we have highlighted five that were at the forefront of the rally last week. These are Microchip Technology Inc. MCHP, Palantir Technologies Inc. PLTR, Tesla TSLA, AppLovin Corporation APP and Micron Technology MU. According to several reports, China might suspend its 125% tariff on some U.S. goods, which boosted market sentiment. The potential tariff cuts would target key sectors, including medical equipment and industrial chemicals such as ethane, a crucial material for plastic production. China is also weighing the removal of tariffs on aircraft leasing payments, a major expense for domestic airlines (read: Tariff Relief Talks Lift Tech ETFs, Stocks: What's Ahead?). In an interview with Time magazine on Friday, Trump said he expects many trade deals over the next three to four weeks. Trump, who criticized Federal Reserve Chairman Jerome Powell by calling him a 'major loser,' clarified that he had no plans to oust him before his term ends in May Powell emphasized a wait-and-see approach to further interest rate cuts in response to President Trump's tariffs, a few other Fed officials signaled openness to potential reductions. Federal Reserve Bank of Cleveland President Beth Hammack, in a CNBC interview, said a cut as early as June could be possible. Netflix (NFLX) reached a historic milestone last week, with its stock price soaring to an all-time high of nearly $1,101. This surge reflects the company's robust performance and investor confidence in its growth trajectory, solidifying its position as a leader in the streaming industry. The solid trend is likely to continue given the company's trillion-dollar ambition and analysts' increasing target price (read: Netflix Soars to All-Time High: 5 ETFs to Ride the Surge).Though Tesla reported dismal first-quarter 2025 results, missing estimates for earnings and revenues, shares climbed after CEO Elon Musk injected optimism by reaffirming the company's goals for the launch of robotaxis and affordable vehicles. Musk's promise to refocus on his business rekindled investor hopes. Meanwhile, Google parent Alphabet (GOOG, GOOGL) announced robust first-quarter 2025 results, topping estimates on both earnings and revenues. The company also hiked its dividend by 5% and authorized another $70 billion in stock take a closer look at the fundamentals of QQQ. This ETF provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 59.5% of the assets while consumer discretionary makes up for 20.2% share. QQQ is one of the largest and most popular ETFs in the large-cap space with an AUM of $286.8 billion and an average daily volume of more than 63 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: 5 Undervalued Growth ETFs to Play on Cues of Easing Trade Tensions). Microchip Technology develops and manufactures microcontrollers, memory and analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks. The stock soared 21.6% last week and saw a positive earnings estimate revision of a penny for the fiscal year (ending March 2026) over the past seven days. Its earnings are expected to decline 13.4% this fiscal year. Microchip Technology has a Zacks Rank #3 (Hold). Palantir Technologies builds and deploys software platforms for the intelligence community, principally in the United States. The stock soared about 20% last week and has an estimated earnings growth rate of 34.1% this year. Palantir Technologies has a Zacks Rank #5 (Strong Sell). Tesla is an electric vehicle (EV) maker, which has evolved into a dynamic technology innovator. The stock jumped 18.1% last week and has an estimated earnings decline rate of 22.3% for this year. Tesla has a Zacks Rank #5 (read: Should You Buy Tesla ETFs Post Q1 Earnings Miss?). AppLovin provides a technology platform that enables developers to market, monetize, analyze and publish their apps. The stock has gained 16.2% and has an estimated earnings growth rate of 47.46% for this year. It has a Zacks Rank # Technology has established itself as one of the leading worldwide providers of semiconductor memory solutions. The stock was up about 16% last week and has an estimated earnings growth of 426.9% for the fiscal year (ending August 2025). It has a Zacks Rank #3. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports AppLovin Corporation (APP) : Free Stock Analysis Report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
12-04-2025
- Business
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Why Microchip Technology Inc. (MCHP) Went Down On Thursday?
We recently published a list of . In this article, we are going to take a look at where Microchip Technology Inc. (NASDAQ:MCHP) stands against other stocks that traders heavily sold down on Thursday. The stock market wiped away earlier gains, ending Thursday's trading in another bloodbath session, as investors sold off positions amid President Donald Trump's announcement that he had actually raised tariffs on Chinese goods to 145 percent. The Nasdaq was battered the most among all major indices, losing 4.31 percent. The S&P 500 followed with a 3.46-percent drop while the Dow Jones came in last, down 2.50 percent. Meanwhile, 10 companies were heavily sold down on Thursday, recording double-digit losses as investors parked funds to minimize risks from the ongoing uncertainties. In this article, we have listed Thursday's 10 worst performers and detailed the reasons behind their drop. To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million trading volume. A semiconductor wafer at various stages of fabrication, showing the company's range of expertise. Investors resorted to profit-taking in shares of Microchip Technology on Thursday following earlier gains, pushing the company's price down by 13.56 percent to end at $38.81 each. Despite being headquartered in the US, shares of MCHP were sold down given its huge international trade exposure that could be largely impacted by the ongoing trade tensions globally. It does not help that China is one of the countries where MCHP has a large footprint on, having 16 sales and technical offices across the mainland and a development center in Shanghai. According to the company, its China operations work with approximately 170 strategic channel partners and serve more than 12,000 customers. MCHP currently employs approximately 440 employees in the mainland. Earlier this week, an analyst warned that chipmakers' indirect exposure to electronics and machinery would impact them more than investors realized. Overall, MCHP ranks 5th on our list of stocks that traders heavily sold down on Thursday. While we acknowledge the potential of MCHP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MCHP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
