Microchip Technology MCHP is expanding its footprint in the automotive and industrial sectors with the introduction of the TA101, its latest TrustAnchor Security Integrated Circuit (IC). This innovative solution addresses the growing cybersecurity demands, supporting extensive key sizes like Elliptic Curve Cryptography (ECC) P521 and Advanced Encryption Standard (AES) 256, exceeding current standards while ensuring future adaptability.
TA101 collaborates seamlessly with microcontrollers (MCUs) and microprocessors (MPUs), providing essential features such as secure boot, Transport Layer Security (TLS) and High-bandwidth Digital Content Protection (HDCP). Its unique off-chip architecture for in-vehicle networking enhances flexibility, reducing costs and time to market.
TA101 aligns with Commercial National Security Algorithm (CNSA) algorithms and the Edwards Curve ed25519 curve, exemplifying Microchip's dedication to delivering robust and secure solutions.
Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote
Microchip Benefits from a Strong Portfolio
Microchip is riding on consistent strength in its automotive and industrial sectors as MCHP addresses the surging demand for efficient coding in real-time control applications.
With the launch of the MPLAB XC-DSC Compiler for dsPIC Digital Signal Controllers (DSCs), MCHP effectively responds to industry needs, streamlining coding and debugging processes. This addition ensures optimized performance and offers flexible licensing options, meeting the evolving requirements of the rapidly growing industrial and autonomous vehicle markets.
MCHP and GlobalFoundries GFS recently announced the immediate release of production of the Silicon Storage Technology (SST) ESF3 third-generation embedded SuperFlash technology NVM solution in the GF 28SLPe foundry process.
GlobalFoundries implements SST’s widely deployed ESF3 SuperFlash technology. This delivers several capabilities and benefits, including the lowest cost 28-nm HKMG ESF3 solution with only 10 masks added, including true 5V IO CMOS devices.
Microchip expanded its portfolio with the launch of the MPLAB Machine Learning (ML) Development suite. This innovative software package empowers developers to integrate ML capabilities into MCUs and microprocessor units seamlessly. Its integrated solution is designed for embedded engineers and is the first to support 32-bit MCUs and MPUs and 8 and 16-bit devices to enable efficient product development.
Microchip expands its Gigabit Ethernet switch, the LAN9662, enhancing industrial automation with Audio-Video Bridging and Time Sensitive Network (AVB/TSN) support and integrated PHYs for real-time data processing.
A strong portfolio is expected to boost top-line growth. Microchip expects net sales to be $1.803-$1.916 billion for the third quarter of fiscal 2024. Non-GAAP earnings are anticipated to be between $1.09 per share and $1.17.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $1.86 billion, indicating a decline of 14.14% year over year. The consensus mark for earnings is pegged at $1.16 per share.
Zacks Rank & Stocks to Consider
Currently, MCHP carries a Zacks Rank #5 (Strong Sell).
Shares of MCHP have returned 17.4% compared with the Zacks Computer & Technology sector’s growth of 43.7% year to date.
Some better-ranked stocks in the broader technology sector are Badger Meter BMI and Arista Networks ANET. While Badger Meter sports a Zacks Rank #1 (Strong Buy), Arista Networks has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Badger Meter’s shares have gained 35.9% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
Arista Networks’ shares have surged 71.2% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 19.77%.
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