This Microchip Technology Analyst Raises Price Target By $8 After 2nd Increase In Sales Guidance

Microchip Technology Inc (NASDAQ:MCHP) raised its guidance for the third quarter of fiscal 2026, marking the second increase for its December quarter sales guidance, according to JPMorgan.

The Microchip Technology Analyst: Analyst Harlan Sur reiterated an Overweight rating, while raising the price target from $77 to $85.

The Microchip Technology Thesis: The company raised its quarterly sales guidance to $1.185 billion, representing around 4% sequential growth and 15% year-on-year growth, Sur said in the note.

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Microchip Technology had earlier revised this guidance in early December, he added.

"Bookings have been strong and the starting backlog for the March quarter is much stronger than it was for the December quarter," the analyst wrote.

He further stated that the company could continue reporting sequential growth in 2026 and that gross margins are likely to continue expanding due to "lower underutilization charges and lower inventory write-offs."

MCHP Price Action: Shares of Microchip Technology had risen by 8.37% to $72.67 at the time of publication on Tuesday.

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