New York, Jan 29, 2026, 15:43 EST — Regular session
Shares of Microchip Technology slipped roughly 2.2% Thursday, hitting $78.55 in afternoon trading. The stock swung between $76.08 and $80.80 throughout the session.
The dip comes just a week ahead of Microchip’s quarterly earnings on Feb. 5. Investors will be watching closely for shifts in demand and guidance updates. The company plans to hold its earnings call at 5:00 p.m. Eastern that day. 1
Thursday’s decline followed a wider sell-off in U.S. tech shares, triggered by Microsoft’s update that rattled investors and raised doubts over the returns from big AI bets. “Microsoft disappointed and there are some genuine concerns that AI investments will eat the software companies’ lunches,” said John Praveen, managing director and co-CIO at Paleo Leon. 2
Microchip surged over 4% on Wednesday amid a global rally in chip stocks, sparked by strong cues from SK Hynix and ASML. The gains lifted Intel, Nvidia, and Micron as well, pushing the S&P 500 briefly past the 7,000 mark. 3
Analysts remain busy on Microchip. On Wednesday, BofA Securities bumped the stock from “Neutral” to “Buy” and lifted the price target sharply to $95 from $78, pointing to stronger recovery momentum, according to Investing.com. 4
Microchip flagged product momentum early Thursday by unveiling new PIC32CM PL10 microcontrollers. These chips, built on Arm’s Cortex‑M0+ core, target high-volume embedded markets like industrial control and building automation. “PL10 MCUs help engineers more easily migrate to higher performance microcontrollers while maintaining the straightforward development experience, power efficiency and cost structure,” said Greg Robinson, a corporate vice president in Microchip’s MCU business unit. 5
Microchip boosted its third-quarter net sales forecast to roughly $1.19 billion earlier this month, describing the change as a rebound tied to customers clearing out excess chip stock. CEO Steve Sanghi noted, “Our bookings activity was very strong in the December quarter,” referring to orders received and highlighting a healthier starting backlog—unfilled orders—for the March quarter. 6
But the tape has turned jumpy. Even on days when a chip company reports its own news, individual names can get dragged down as investors de-risk tech following big earnings surprises.
Microchip now faces the challenge of backing up its recent recovery story and steering clear of renewed caution when it reports earnings next week.
Microchip’s report after the bell on Feb. 5 and its guidance for the March quarter will be the next major catalyst.
