Barclays Sees Microchip Technology (MCHP) Less Sensitive to Industrial Demand Swings

NodeGuardian · 2026-02-27T07:30:35+00:00

Barclays analyst Tom O’Malley has rated Microchip Technology (MCHP) as Equal Weight with an $80 price target, citing lower sensitivity to industrial demand fluctuations. Despite cautious optimism, challenges like potential market share losses in microcontrollers exist. Microchip's CEO noted strong growth in Q3 2026 driven by networking and data centers, with significant design wins projected for 2027.

NodeGuardian

2026-02-27 07:30:35

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Barclays analyst Tom O’Malley initiated coverage of Microchip Technology (MCHP) with an Equal Weight rating and an $80 price target, noting the company’s business is less sensitive to industrial demand swings compared to competitors. While “cautiously optimistic” about an industrial recovery, Barclays identifies potential market share losses in microcontrollers as a challenge for MCHP. Despite this, Microchip’s CEO, Steve Sanghi, reported solid Q3 2026 growth driven by networking, data center, FPGA, and licensing, with significant design wins expected to generate over $100 million in revenue in calendar year 2027.

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