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Microchip (MCHP) Expands JAN Transistor Portfolio for Defense

Microchip Technology MCHP recently announced that its portfolio of JAN transistors has now been tested and qualified to meet Military-Standard Enhanced Low Dose Radiation Sensitivity (ELDRS) requirements. This expands its footprint in the aerospace and defense sector.

The transistors include compliance with MIL-STD-750, Test Method 1019, and various specifications such as MIL-PRF-19500/255, /291, /355, /376 and /391, ensuring the highest reliability for military applications.

With a legacy of more than 60 years in the industry, Microchip continues to advance its capabilities with specialized manufacturing and testing facilities, including its robust MIL-PRF-19500 screening and reliability testing facility in Ennis, Ireland and its Defense Logistics Agency (DLA) Certified fab in Lawrence, MA.

The expansion underscores Microchip’s commitment to delivering high-reliability solutions, including radiation-tolerant and radiation-hardened components, to meet the ongoing demand for aerospace and defense applications.

Microchip Technology Incorporated Price and Consensus

 

Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated Price and Consensus

Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote

 

Microchip’s Strong Portfolio Aids Prospect

The latest move bodes well with MCHP’s commitment to strengthen its overall portfolio to boost its customer momentum across various end markets.

Microchip’s expanding portfolio in the space domain has been a major growth driver. In May, Microchip announced the SAMD21RT, a radiation-tolerant Arm Cortex-M0+-based 32-bit microcontroller designed for space applications, featuring high-performance processing, extensive analog functions, and comprehensive system solutions for harsh environments.

The company also introduced a new family of Radiation-Tolerant (RT) LE50-28 isolated DC-DC 50W power converters to meet the growing demand of the Low-Earth Orbit (LEO) market for reliable, cost-effective, and configurable space-grade solutions.

Expanding MCHP’s Trust Portfolio platform has been noteworthy. In fourth-quarter fiscal 2024, Microchip expanded its TrustFLEX family with CEC1736 real-time platform root of trust devices, offering simplified enablement from concept to production across diverse applications using the Trust Platform Design Suite tool.

Despite MCHP’s robust portfolio across various end markets, persistent inflationary pressures and high interest rates have resulted in a weak macro environment.

Microchip experienced a significant inventory correction, which resulted in a 40.6% year-over-year decline in the top line to $1.33 billion in the fiscal fourth quarter. The distribution channels also reduced their inventory levels, which have negatively impacted the company’s top line.

Microchip expects net sales to be $1.22-$1.26 billion for first-quarter fiscal 2025. Non-GAAP earnings are anticipated between 48 cents per share and 56 cents.

The Zacks Consensus Estimate for revenues is pegged at $1.24 billion, indicating a 45.75% year-over-year decline. The consensus mark for earnings is pegged at 52 cents per share, suggesting a 68.29% year-over-year decline.

Zacks Rank & Stocks to Consider

Currently, Microchip carries a Zacks Rank #3 (Hold).

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The company’s shares have declined 1.2% year to date compared with the Zacks Computer & Technology sector’s rise of 25.7%.

Some better-ranked stocks in the broader technology sector are Arista Networks ANET, Alphabet GOOGL, and Dropbox DBX, each sporting a Zacks Rank #1(Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks’ shares have gained 44.4% in the year-to-date period. The long-term earnings growth rate for ANET is pegged at 15.68%.

Alphabet’s shares have gained 26.4% in the year-to-date period. The long-term earnings growth rate for GOOGL is currently projected at 17.51%.

Shares of Dropbox have declined 29.1% in the year-to-date period. The long-term earnings growth rate for DBX is pegged at 11.44%.

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Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

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Dropbox, Inc. (DBX) : Free Stock Analysis Report

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