CHANDLER, Ariz., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Microchip Technology (Nasdaq: MCHP) today announced a collaboration with Hyundai Motor Group (HMG) to explore the adoption of advanced in-vehicle network solutions based on 10BASE-T1S Single Pair Ethernet (SPE) technology. This cooperation effort is intended to support the development of more efficient, reliable and scalable vehicle architectures that meet the evolving demands of future mobility. The rapid advancement of Advanced Driver-Assistance Systems ( ...

Core Insights - Post-quantum cryptography (PQC) is becoming a significant investment opportunity by 2026 due to government mandates for its adoption, creating immediate revenue prospects for vendors [2][4][5] Industry Overview - The global PQC market is projected to grow from $0.42 billion in 2025 to $2.84 billion by 2030, reflecting a compound annual growth rate (CAGR) of 46%, driven by sectors such as government, telecom, finance, and critical infrastructure [5] - The adoption of PQC has accelerated following the U.S. National Institute of Standards and Technology (NIST) finalizing its first PQC standards, which provide practical tools for data protection against quantum-based cyber risks [4] Company Analysis Lattice Semiconductor (LSCC) - LSCC is positioned as a key beneficiary of PQC adoption, having launched the first secure control FPGA family compliant with NIST standards, targeting various markets including government and automotive [8] - The Zacks Consensus Estimate for LSCC's 2026 earnings is $1.47, indicating a 40% improvement from 2025, with a revenue estimate of $631 million suggesting 21.1% growth [9] Microchip Technology (MCHP) - MCHP is strategically aligned for the post-quantum transition with its crypto-agile MCUs and FPGAs, focusing on long-lifecycle customers in government and industrial sectors [10] - The Zacks Consensus Estimate for MCHP's fiscal 2027 earnings is $2.54 per share, projecting a 67.5% improvement from fiscal 2026, with a revenue estimate of $5.48 billion indicating 19% growth [12] STMicroelectronics (STM) - STM emphasizes a roadmap-driven approach to PQC, offering crypto-agile hardware and software libraries that support NIST standards, focusing on smooth migration rather than immediate monetization [13] - The Zacks Consensus Estimate for STM's 2026 earnings is $1.05 per share, projecting a 98.1% improvement from 2025, with a revenue estimate of $13.15 billion suggesting 11.5% growth [14]

Core Insights - The semiconductor industry is experiencing strong performance, with global sales increasing by 29.8% year over year to $75.3 billion in November 2025, driven by solid demand across various sectors [1][10] Industry Performance - Semiconductor companies are benefiting from robust sales growth across a wide range of products, including microprocessors, memory chips, and advanced driver assistance systems [3] - Demand from hyperscalers, cloud service providers, and AI companies is driving the rise in microchip sales, leading to increased capital expenditure on more powerful chips [4] - Inventory normalization among industrial and automotive customers is contributing to improved sales and margins, aided by easing inflation [5] Upcoming Earnings Reports - Microchip Technology, Monolithic Power Systems, and MACOM Technology Solutions are set to report their financial results on February 5, 2026 [2][10] - Microchip Technology is expected to report revenues of $1.19 billion for Q3 fiscal 2026, reflecting a 15.5% increase year over year, with earnings estimated at 43 cents per share, a 115% increase [8] - Monolithic Power Systems anticipates revenues of $740.72 million for Q4 2025, a 19.2% increase year over year, with earnings estimated at $4.73 per share, a 15.6% increase [13] - MACOM Technology Solutions expects revenues of $268.91 million for Q1 fiscal 2026, a 23.3% increase year over year, with earnings estimated at 99 cents per share, a 25.3% increase [17] Company-Specific Insights - Microchip Technology's performance is likely supported by improving inventory levels, with inventory days decreasing from 266 days to 199 days [9] - Monolithic Power Systems is benefiting from steady demand in enterprise data and automotive markets, particularly from AI server applications [14] - MACOM Technology Solutions is experiencing strong demand in the Data Center business, with expectations of sequential revenue growth supported by strong bookings [18] - The Industrial & Defense markets are also expected to positively impact MACOM's performance, with revenues in this segment rising by 7% sequentially [19]

Core Insights - Microchip Technology (MCHP) is expected to report third-quarter fiscal 2026 results on February 5, 2026, with net sales projected between $1.109 billion and $1.149 billion, indicating a sequential decline of approximately 1% at the midpoint, while year-over-year growth is estimated at 15.5% [1][2] Financial Performance - Non-GAAP earnings per share are anticipated to range from 34 cents to 40 cents, with the consensus estimate at 43 cents per share, reflecting a significant year-over-year growth of 115% [2] - MCHP has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 0.00% [2] Inventory and Production - The company has successfully reduced its inventory levels from a peak of 266 days to 199 days over three quarters, which is expected to continue positively impacting the upcoming results [3] - Distributor inventory levels were reduced to 27 days in the second quarter of fiscal 2026, and MCHP has scaled back its capital expenditures while maintaining sufficient manufacturing capacity to support production growth [4] Market Demand - Strong demand for Gen 4 and Gen 5 data center products, driven by inventory corrections among customers and increased AI data center build-outs, is anticipated to positively influence MCHP's third-quarter results [5][9] - The company is benefiting from strong design wins in high-growth sectors such as industrial, aerospace, and automotive, which is expected to enhance revenue performance [6] Earnings Prediction - The earnings model indicates a high likelihood of an earnings beat for MCHP, supported by a positive Earnings ESP of +1.34% and a Zacks Rank of 1 (Strong Buy) [7][8]

Microchip’s MCPF1525 power module with PMBus™ delivers 25A DC-DC power, stackable up to 200ACHANDLER, Ariz., Feb. 03, 2026 (GLOBE NEWSWIRE) -- The increasing AI and high-performance computing workloads demand power solutions that combine efficiency, reliability and scalability. Integrated power modules help streamline design, reduce energy use and deliver the stable performance required for advanced data centers. Microchip Technology (Nasdaq: MCHP) today announces the launch of the MCPF1525 Power Module, a ...

Core Viewpoint - The article highlights significant upgrades in stock ratings for various companies, indicating potential investment opportunities based on recent performance and future outlooks [1] Group 1: Company Upgrades - HSBC upgraded UPS (UPS) to Buy from Hold with a price target of $125, increased from $100, citing Q4 results that exceeded expectations and strong margin potential by the end of 2026 as disruptions fade [2] - BofA upgraded Texas Instruments (TXN) to Neutral from Underperform with a price target of $235, up from $185, driven by industrial inventory replenishment and growth in data center power and automotive markets [2] - BofA upgraded Microchip (MCHP) to Buy from Neutral with a price target of $95, raised from $78, noting significant potential for earnings upgrades as the 2027 sales forecast of $7 billion is below previous peaks [2] - Rothschild & Co Redburn upgraded Visa (V) to Buy from Neutral with a price target of $385, up from $327, anticipating a shift in e-commerce dynamics that favors card networks [2] - Morgan Stanley upgraded Johnson & Johnson (JNJ) to Overweight from Equal Weight with a price target of $262, increased from $200, based on higher estimates for new products and a higher valuation multiple [2]

Founded in 1989, Chandler, Arizona-based Microchip Technology Incorporated (MCHP) develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas and internationally. The company has a market capitalization of $40.6 billion and operates through two segments, Semiconductor Products and Technology Licensing. MCHP offers general-purpose 8-bit, 16-bit, 32-bit, and 64-bit mixed-signal microcontrollers; 32-bit and 64-bit embedded mixed-signal microprocessors and related ...

Core Insights - Microchip Technology has introduced the PIC32CM PL10 MCUs, expanding its PIC32C family of Arm Cortex-M0+ core devices, targeting applications in industrial control, building automation, consumer appliances, power tools, and sensor-based systems [1][4] Product Features - The PL10 MCUs include a Peripheral Touch Controller (PTC) and a 12-bit Analog-to-Digital Converter (ADC) for enhanced performance in touch applications and improved noise immunity for analog signal measurement [2] - On-chip Core Independent Peripherals (CIPs) are designed to offload time-critical tasks from the CPU, enhancing real-time performance and power efficiency [2] - The PL10 family supports the Cortex Microcontroller Software Interface Standard (CMSIS), facilitating modular and reusable application code to speed up development [2] Development Ecosystem - The PL10 MCUs are supported by Microchip's MPLAB development ecosystem and are compatible with industry-standard tools and integrated development environments (IDEs) such as Microsoft Visual Studio Code, IAR Systems, Arm Keil, SEGGER, Zephyr, and MikroElektronika [3] - AI-driven resources like the MPLAB AI Coding Assistant provide context-aware code generation and real-time product insights to streamline development [3] Market Positioning - The PL10 MCUs are designed to help engineers transition to higher performance microcontrollers while retaining the development experience and cost structure of existing 8-bit solutions [4] - Microchip plans to introduce a range of new microcontrollers over the next 12-18 months, covering entry-level to AI-capable devices, reinforcing its commitment to a comprehensive MCU portfolio [4] Compliance and Performance - The PL10 family complies with various industry safety standards, including ISO 26262 for functional safety in automotive applications [4] - These MCUs operate from 1.8 to 5.5 volts, suitable for high-noise environments in automotive, IoT, industrial automation, and consumer electronics [4] - The integrated Multi-Voltage I/O (MVIO) allows simultaneous connections to devices operating at different voltage levels without the need for external level shifters [4] Availability - The PIC32CM PL10 MCUs are available for purchase directly from Microchip or through authorized distributors [6]

Summary of Earnings Call Company and Industry - **Companies Mentioned**: STX (Seagate Technology), ASML, TXN (Texas Instruments), QRVO (Qorvo) - **Industry**: Technology, specifically focusing on data storage, semiconductors, and electronics Key Points and Arguments STX (Seagate Technology) - **Earnings Performance**: - Revenue of $2.83 billion, up 22% year-over-year, compared to a previous quarter's growth of 21% and market expectations of $2.74 billion, which was approximately 18% growth [7][6] - EPS of $3.11, exceeding market expectations of $2.83; Non-GAAP gross margin at 42.2% vs. expected 40.8% [7] - **Market Commentary**: - Management described an "exceptionally strong" data center environment, expecting demand to offset typical seasonal declines [9] - Nearline capacity fully allocated through CY26, with plans to accept orders for 1H27 [12] - **Pricing Trends**: - Revenue per TB remains stable with a modest increase in $/TB expected to continue, indicating a potential shift in pricing dynamics [12] - **Growth Drivers**: - Incremental storage-server demand linked to AI workloads, with data centers remaining the core driver of growth [9] TXN (Texas Instruments) - **Earnings Performance**: - Q4 revenue of $4.423 billion, up 10.4% year-over-year, aligning with market expectations [24][26] - Q1 guidance midpoint of $4.50 billion, indicating a 2% quarter-over-quarter increase and 10.6% year-over-year growth [24] - **Market Commentary**: - Management expressed optimism about industrial recovery and data center strength, with improving orders and backlog [23] - Data center business expected to grow approximately 70% year-over-year [26] - **Pricing Trends**: - Management anticipates low single-digit price declines (~2-3%) in 2026, emphasizing the impact of annual negotiations [26] QRVO (Qorvo) - **Earnings Performance**: - Q4 revenue and EPS were better than expected, but Q1 guidance was approximately 12% below market expectations [32][35] - **Market Commentary**: - Management attributed revenue gaps to weakness in Android and planned exits from lower-margin models [35] - Concerns about the sustainability of profitability amidst declining Android sales and competition [41] - **Growth Drivers**: - Focus on transitioning to higher-quality, more durable programs, with expectations of gross margins above 50% despite revenue declines [42] ASML - **Earnings Performance**: - Stock price increased by 5% due to bookings of €13 billion, significantly exceeding expectations [45] - **Market Commentary**: - Management highlighted strong progress with customers and revenue guidance implying 4-20% year-over-year growth for 2026 [46] - **Growth Drivers**: - Continued demand in semiconductor capital expenditures, with a focus on high-volume manufacturing tools [46] Additional Important Insights - **Market Sentiment**: - The overall sentiment in the technology sector appears positive, driven by strong earnings reports and optimistic guidance from key players [1][2] - **Investment Considerations**: - The discussions around pricing stability and growth in data center demand suggest potential investment opportunities in companies like STX and TXN, while QRVO faces challenges that may impact its valuation [18][22][42]

Market Overview - Wall Street has started 2026 positively, continuing a strong rally from the past three years, with optimism that the upward trend in U.S. stock markets will persist despite trade concerns and geopolitical uncertainties [1] - The U.S. corporate sector shows solid performance, supported by robust GDP growth, decreasing inflation, and strong consumer spending [1] Stock Recommendations - Three stocks with a top Zacks Rank and double-digit returns year to date are recommended: Micron Technology Inc. (MU), Interactive Brokers Group Inc. (IBKR), and Microchip Technology Inc. (MCHP), all holding a Zacks Rank 1 (Strong Buy) [2] Micron Technology Inc. (MU) - Micron Technology is a leader in the AI infrastructure boom, driven by strong demand for high-bandwidth memory (HBM) solutions and record sales in the data center market [5] - The growing adoption of AI servers is reshaping the DRAM market, increasing demand for high-capacity DIMMs and low-power server DRAM, which Micron is capitalizing on with its advanced DRAM technology and product roadmap [6] - Micron's diversification strategy has stabilized its revenue base by shifting focus from consumer electronics to more resilient sectors like automotive and enterprise IT, with expected revenue and earnings growth rates of 95.2% and over 100% for the current year [7][8] Interactive Brokers Group Inc. (IBKR) - Interactive Brokers is enhancing revenues through proprietary software development, lower compensation expenses relative to net revenues, and expanding its global footprint, particularly in emerging markets [10][11] - The company has an expected revenue growth rate of 3.7% and earnings growth rate of 7.3% for the current year, with a 4.9% improvement in the Zacks Consensus Estimate for earnings over the last week [12] Microchip Technology Inc. (MCHP) - Microchip Technology is benefiting from increased AI investments, with strong sales growth in its Gen 4 and Gen 5 data center products, including the launch of a 3-nanometer-based PCIe Gen 6 switch [13][14] - The company is enhancing its offerings for AI and data center applications, which is expected to drive long-term top-line growth, with expected revenue and earnings growth rates of 4.9% and 15.3% for the current year [16]