Microchip Technology MCHP is expanding its footprint in the semiconductor industry with the recent launch of the PIC18-Q24, addressing the demand for advanced security solutions in an increasingly connected world.
The microcontroller unit incorporates the innovative Programming and Debugging Interface Disable (PDID) to protect against malicious reprogramming and secure firmware from unauthorized access.
The Multi-Voltage I/O (MVIO) simplifies interfacing with various components, reducing board complexity and costs. The PIC18-Q24 family also offers an option for an immutable bootloader, ensuring a secure firmware upgrade process.
Supported by Microchip's development ecosystem and MPLAB Code Configurator (MCC), these MCUs provide a seamless embedded development experience. At the same time, the PIC18F56Q24 Curiosity Nano Evaluation Kit accelerates time to market with advanced security features.
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 semiconductor sector as MCHP addresses the surging demand for enhanced security in connected devices.
MCHP reinforced the strength of its PolarFire FPGA's security solution as the U.K. government’s National Cyber Security Centre (NCSC) conducts a successful review of the FPGA’s single-chip crypto design flow, enhancing trust in connected technologies.
MCHP also recently introduced the industry's first low-pin-count MCU family, the PIC18 Q20 product line, featuring I3C support and is notable for its space efficiency and compatibility with devices across multiple voltage domains.
In the second quarter of fiscal 2024, MCHP and GlobalFoundries GFS 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.
Expanding its technological portfolio, Microchip launches 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.
A strong portfolio is expected to boost top-line growth, although the prevailing macroeconomic uncertainty is a concern.
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 16.5% compared with the Zacks Computer & Technology sector’s growth of 45.6% 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 shares have gained 34.8% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
Arista Networks shares have gained 79% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 19.77%.
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