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MCHP's New VCSO's Expands Portfolio: How Should You Play the Stock?
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Microchip Technology (MCHP - Free Report) recently announced the launch of the 101765-320-A VCSO (Voltage-Controlled SAW Oscillators), designed to deliver ultra-low phase noise performance of 166 dBc at 10 kHz offset and a 182 dBc floor.
The 101765-320-A VCSO is MCHP’s latest Voltage-Controlled SAW Oscillator, operating at 320 MHz and 400 MHz. With ultra-low phase noise, it enhances detection limits in radar and sensing applications.
For aerospace and defense customers needing enhanced reliability, the 101765 VCSOs come with MIL-PRF-38534 screening. This process ensures that only the highest reliability components are used in critical applications where failure is unacceptable, such as military and aerospace systems.
With its recent launch, Microchip highlights its commitment to delivering comprehensive embedded solutions that ensure high reliability for robust and mission-critical environments.
Microchip Technology Incorporated Price and Consensus
MCHP’s shares have declined 14.6% against the Zacks Computer & Technology sector’s return of 22.1% on a year-to-date basis.
In spite of a solid portfolio, sustained inflation and elevated interest rates have contributed to a difficult macroeconomic environment.
The latest move bodes well for Microchip’s focus on enhancing user experience through its new 101765 family of VCSO.
Microchip recently launched the Microchip Graphics Suite (MGS), a comprehensive solution designed to streamline the integration of graphical user interfaces (GUIs) into electronic devices.
MGS provides robust features like a WYSIWYG interface, a hardware-free prototyping simulator, and extensive support for various displays and touchscreens, making it an ideal tool for designers aiming for efficiency and reusability across projects.
MCHP expanded its SPE solutions with the launch of LAN887x Ethernet PHY transceivers supporting 100 Mbps to 1000 Mbps using 1000BASE-T1 network speeds and cable lengths up to 40m for extended reach.
These devices provide advanced diagnostics, including cable fault detection, signal quality indicator, link down and errors, built in self-test and temperature and voltage monitoring for increased reliability.
Microchip Technology expanded its TrustFLEX portfolio with the addition of the ECC204, SHA104 and SHA105 CryptoAuthentication ICs.
The ECC20x and SHA10x ICs are hardware-based secure storage devices designed to protect secret keys from unauthorized access. As part of the TrustFLEX platform, the ECC204, SHA104 and SHA105 ICs come preconfigured with specific use cases, customizable cryptographic keys and code examples to simplify the development process.
MCHP's robust demand across various end markets—industrial, automotive, aerospace and defense, data center, and communications infrastructure—has been a key driver of growth.
In August, MCHP launched its latest Single Pair Ethernet (SPE) solutions with the LAN887x Ethernet PHY transceiver family. This solution addresses the increasing connectivity demands in the automotive, industrial, avionics, robotics, and automation sectors.
MCHP’s Q2 Guidance is Not So Rosy
MCHP expects net sales to be $1.12-$1.18 billion for second-quarter fiscal 2025. Non-GAAP earnings are anticipated to be between 40 cents and 46 cents per share.
Microchip experienced a significant inventory correction, which resulted in a 45.8% year-over-year decline in the top line to $1.24 billion in first-quarter fiscal 2025. The distribution channels also reduced its inventory levels, which have negatively impacted the top line.
The Zacks Consensus Estimate for revenues is pegged at $1.15 billion, indicating a 48.93% year-over-year decline. The consensus mark for earnings is pegged at 43 cents per share, down by 2 cents in the last 30 days.
Zacks Rank & Valuation
MCHP stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
Microchip currently carries Zacks Rank #5 (Strong Sell), which implies that investors should stay away from investing in this stock at present.
Image: Bigstock
MCHP's New VCSO's Expands Portfolio: How Should You Play the Stock?
Microchip Technology (MCHP - Free Report) recently announced the launch of the 101765-320-A VCSO (Voltage-Controlled SAW Oscillators), designed to deliver ultra-low phase noise performance of 166 dBc at 10 kHz offset and a 182 dBc floor.
The 101765-320-A VCSO is MCHP’s latest Voltage-Controlled SAW Oscillator, operating at 320 MHz and 400 MHz. With ultra-low phase noise, it enhances detection limits in radar and sensing applications.
For aerospace and defense customers needing enhanced reliability, the 101765 VCSOs come with MIL-PRF-38534 screening. This process ensures that only the highest reliability components are used in critical applications where failure is unacceptable, such as military and aerospace systems.
With its recent launch, Microchip highlights its commitment to delivering comprehensive embedded solutions that ensure high reliability for robust and mission-critical environments.
Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote
Will Robust Portfolio Drive MCHP’s Prospect?
MCHP’s shares have declined 14.6% against the Zacks Computer & Technology sector’s return of 22.1% on a year-to-date basis.
In spite of a solid portfolio, sustained inflation and elevated interest rates have contributed to a difficult macroeconomic environment.
The latest move bodes well for Microchip’s focus on enhancing user experience through its new 101765 family of VCSO.
Microchip recently launched the Microchip Graphics Suite (MGS), a comprehensive solution designed to streamline the integration of graphical user interfaces (GUIs) into electronic devices.
MGS provides robust features like a WYSIWYG interface, a hardware-free prototyping simulator, and extensive support for various displays and touchscreens, making it an ideal tool for designers aiming for efficiency and reusability across projects.
MCHP expanded its SPE solutions with the launch of LAN887x Ethernet PHY transceivers supporting 100 Mbps to 1000 Mbps using 1000BASE-T1 network speeds and cable lengths up to 40m for extended reach.
These devices provide advanced diagnostics, including cable fault detection, signal quality indicator, link down and errors, built in self-test and temperature and voltage monitoring for increased reliability.
Microchip Technology expanded its TrustFLEX portfolio with the addition of the ECC204, SHA104 and SHA105 CryptoAuthentication ICs.
The ECC20x and SHA10x ICs are hardware-based secure storage devices designed to protect secret keys from unauthorized access. As part of the TrustFLEX platform, the ECC204, SHA104 and SHA105 ICs come preconfigured with specific use cases, customizable cryptographic keys and code examples to simplify the development process.
MCHP's robust demand across various end markets—industrial, automotive, aerospace and defense, data center, and communications infrastructure—has been a key driver of growth.
In August, MCHP launched its latest Single Pair Ethernet (SPE) solutions with the LAN887x Ethernet PHY transceiver family. This solution addresses the increasing connectivity demands in the automotive, industrial, avionics, robotics, and automation sectors.
MCHP’s Q2 Guidance is Not So Rosy
MCHP expects net sales to be $1.12-$1.18 billion for second-quarter fiscal 2025. Non-GAAP earnings are anticipated to be between 40 cents and 46 cents per share.
Microchip experienced a significant inventory correction, which resulted in a 45.8% year-over-year decline in the top line to $1.24 billion in first-quarter fiscal 2025. The distribution channels also reduced its inventory levels, which have negatively impacted the top line.
The Zacks Consensus Estimate for revenues is pegged at $1.15 billion, indicating a 48.93% year-over-year decline. The consensus mark for earnings is pegged at 43 cents per share, down by 2 cents in the last 30 days.
Zacks Rank & Valuation
MCHP stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
Microchip currently carries Zacks Rank #5 (Strong Sell), which implies that investors should stay away from investing in this stock at present.
Top-Rank Stocks To Buy
Some better-ranked stocks in the broader technology sector are AudioEye (AEYE - Free Report) , Alps Electric (APELY - Free Report) and Aspen Technology , each sporting a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
AudioEye’s shares have surged 334.8% in the year-to-date period. The long-term earnings growth rate for AEYE is pegged at 25%.
Alps Electric’s shares have moved up 28.6% in the year-to-date period. The long-term earnings growth rate for APELY is pegged at 40.52%.
Shares of Aspen Technology have returned 6.1% in the year-to-date period. The long-term earnings growth rate for AZPN is pegged at 13.12%.