New York, Jan 18, 2026, 19:14 EST — Market closed
Microchip Technology Incorporated (MCHP.O) shares ended Friday 25 cents higher, a 0.3% gain, closing at $74.70. Tore Svanberg of Stifel bumped the price target to $90 from $80, keeping a buy rating intact. Stifel described Microchip as a “highly diversified, high-performance analog and embedded computing business model.” The updated target implies roughly 20% upside from Friday’s close. 1
The timing matters more than the size of the move itself. Microchip’s business hinges on chips used in factory production and auto assembly lines, not just data-center spending. Investors are looking for solid evidence that demand is stabilizing ahead of earnings season.
U.S. stocks finished Friday nearly flat ahead of the long weekend, while a semiconductor index rose 1.2%. “Historically the middle part of January tends to be pretty choppy,” said Bruce Zaro, managing director at Granite Wealth Management. U.S. markets will be closed Monday for the Martin Luther King Jr. holiday. 2
Microchip, based in Chandler, Arizona, said on Jan. 5 it expects fiscal Q3 net sales to hit about $1.185 billion, beating earlier forecasts. CEO Steve Sanghi pointed to a “fairly broad-based recovery in most of our end markets.” The company will report full quarterly results on Feb. 5. 3
Stifel bumped up its target, arguing the embedded chip slump is close to wrapping up. The firm highlighted strong demand across various products and clients, downplaying dependence on any one hot market.
Traders will likely focus less on whether Microchip hit its revised sales target and more on the story behind the figures. Watch for shifts in backlog trends, distributor inventory, and any signs production is returning to normal after months of tight supply.
A price target shows where an analyst expects a stock to trade over the next year; it isn’t official company guidance. Still, these targets often shape investor talk about valuation, especially when shares near recent highs.
Microchip competes in arenas dominated by Texas Instruments and Analog Devices, supplying microcontrollers and analog chips used in cars, factory equipment, and communications systems. These markets often drag before taking off sharply.
The rebound story might hit a snag. If customers push back deliveries once more or pull orders altogether, Microchip could end up with idle capacity and higher costs—just as investors demand leaner margins rather than patience.
Cash equities were quiet Monday, shifting attention to Tuesday’s open and a heavy lineup of U.S. corporate earnings. Microchip’s next key moment comes Feb. 5, when investors will see if January’s sales update marks a genuine turnaround or merely a short-lived boost.
