New York, February 7, 2026, 20:23 (EST) — The market is now closed.
Microchip Technology Inc dropped 2.6% on Friday, finishing the session at $76.01. Investors took in the company’s updated guidance along with new analyst commentary. With U.S. markets closed for the weekend, the next move arrives when Nasdaq reopens on Monday.
Microchip’s microcontrollers and embedded chips wind up in everything from vehicles to industrial machinery to consumer gadgets. The company’s order trends serve as a read-through for the pace of the broader “old economy” chip downturn—whether it’s actually letting up, or simply catching its breath.
Another concern? Supply, rather than demand. Reuters said a worldwide memory shortfall is rattling electronics manufacturers, prompting some to trim orders—a development that sent Microchip sliding over 5% after the bell on Thursday. 1
Microchip reported a 15.6% jump in fiscal Q3 net sales to $1.186 billion, with non-GAAP earnings at 44 cents a share—excluding restructuring and acquisition costs. The company projected March quarter net sales between $1.24 billion and $1.28 billion and non-GAAP EPS in a 48 to 52 cent range. CEO Steve Sanghi flagged a “substantially better” starting backlog for the March quarter, and noted bookings were “strong.” 2
Microchip Technology declared a quarterly cash dividend of 45.5 cents per share, with payment set for March 10 to holders of record as of Feb. 23. CFO Eric Bjornholt noted net debt dropped by $26 million for the quarter, adding that capital spending remains disciplined. 3
TD Cowen’s Joshua Buchalter dropped his price target to $70 from $75 and stuck with a Hold rating, saying the outlook probably “failed to meet the bar” following some earlier optimism. He noted a book-to-bill ratio above 1—orders outpacing sales—but called out the shaky visibility on how fast recovery might actually unfold. 4
JPMorgan bumped its price target up to $95 from $85, sticking with an Overweight call after margins and earnings landed above forecasts. With targets moving in both directions, traders could see the stock reacting just as much to tweaks in estimates as to shifts in the topline revenue guide. 5
BlackRock reported in an SEC filing Friday that it held roughly 54.3 million shares of Microchip as of Jan. 31—good for a 10% stake. No indication of a control shift here, but the filing highlights just how much of the stock sits with institutions. 6
Bulls face a headache if the supply squeeze lingers or even expands, stretching out delivery wait times and making customers hesitate. Microchip, for its part, is juggling debt reduction alongside capacity expansion—missing the mark there could pressure margins.
With the market closed, attention turns to the details—management’s commentary on backlog, inventory levels, and supply snags, plus any fresh analyst moves on targets. The real gauge comes Monday, when Microchip reopens and traders see if the chip sector’s Friday slide did the trick.
