We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Microchip (MCHP) Launches Power Devices, Boosts SiC Portfolio
Read MoreHide Full Article
Microchip Technology (MCHP - Free Report) recently announced the launch of its new SiC mosfets and dies to help develop analog products, peripherals, controllers and communication devices.
The new products are aimed specifically for system designers of industrial motor drives, traction power units (TPUs), auxiliary power units (APUs), solid-state transformers (SSTs), and energy infrastructure solutions.
The expansion of Microchip’s SiC portfolio is anticipated to help designers develop smaller, lighter and more efficient solutions for electrified transportation, renewable energy, aerospace and industrial applications while lowering system costs.
The new products join the company’s comprehensive portfolio of SiC solutions, which include 700V, 1200V and 1700V die, discretes, modules and digital gate drivers.
Microchip Technology Incorporated Price and Consensus
In the last three years, Microchip has released hundreds of SiC power devices and solutions to help designers find the right voltage, current and package fit for their applications.
The company has been launching new SiC products to meet increasing customer demand amid the global supply chain constraints.
It is continuously ramping up production capacity in its external and internal factories to ship as much product as possible to meet customer requirements.
Consequently, in the third quarter of fiscal 2022, net sales of $1.76 billion increased 30% year over year and surpassed the Zacks Consensus Estimate by 0.6%.
In terms of product line, microcontroller sales grew 33.9% year over year and 8.7% sequentially to $972.2 million, accounting for 55.3% of revenues. All microcontroller product lines, 8-bit, 16-bit and 32-bit, reported more than 30% year-over-year growth in sales.
The new Microchip SiC products can seamlessly combine with microcontrollers and power management devices to create complete system solutions for controllers. This is anticipated to aid the growing product line sales growth.
Microchip forecast fourth-quarter fiscal 2022 net sales of $1.793-$1.845 billion, indicating sequential growth of 2-5%. At the mid-point of this guidance, net sales are expected to grow 24% year over year.
However, the company has been witnessing supply chain constraints due to the COVID-19 Omicron variant, which has increased factory workforce absentees.
In the year-to-date period, the Zacks Rank #2 (Buy) stock has fallen 12.1% compared with Zacks Semiconductor - Analog and Mixed industry’s and the Zacks Computer and Technology sector’s fall of 11.3% and 12.8%, respectively.
Other Stocks to Consider
While Microchip is a good stock to buy for the portfolio, here are some other top-ranked stocks worth considering in the broader Computer and technology sector, including Advanced Micro Devices (AMD - Free Report) , Silicon Laboratories (SLAB - Free Report) and ON Semiconductor (ON - Free Report) .
Image: Bigstock
Microchip (MCHP) Launches Power Devices, Boosts SiC Portfolio
Microchip Technology (MCHP - Free Report) recently announced the launch of its new SiC mosfets and dies to help develop analog products, peripherals, controllers and communication devices.
The new products are aimed specifically for system designers of industrial motor drives, traction power units (TPUs), auxiliary power units (APUs), solid-state transformers (SSTs), and energy infrastructure solutions.
The expansion of Microchip’s SiC portfolio is anticipated to help designers develop smaller, lighter and more efficient solutions for electrified transportation, renewable energy, aerospace and industrial applications while lowering system costs.
The new products join the company’s comprehensive portfolio of SiC solutions, which include 700V, 1200V and 1700V die, discretes, modules and digital gate drivers.
Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote
Expansion of SiC portfolio to Drive Top Line
In the last three years, Microchip has released hundreds of SiC power devices and solutions to help designers find the right voltage, current and package fit for their applications.
The company has been launching new SiC products to meet increasing customer demand amid the global supply chain constraints.
It is continuously ramping up production capacity in its external and internal factories to ship as much product as possible to meet customer requirements.
Consequently, in the third quarter of fiscal 2022, net sales of $1.76 billion increased 30% year over year and surpassed the Zacks Consensus Estimate by 0.6%.
In terms of product line, microcontroller sales grew 33.9% year over year and 8.7% sequentially to $972.2 million, accounting for 55.3% of revenues. All microcontroller product lines, 8-bit, 16-bit and 32-bit, reported more than 30% year-over-year growth in sales.
The new Microchip SiC products can seamlessly combine with microcontrollers and power management devices to create complete system solutions for controllers. This is anticipated to aid the growing product line sales growth.
Microchip forecast fourth-quarter fiscal 2022 net sales of $1.793-$1.845 billion, indicating sequential growth of 2-5%. At the mid-point of this guidance, net sales are expected to grow 24% year over year.
However, the company has been witnessing supply chain constraints due to the COVID-19 Omicron variant, which has increased factory workforce absentees.
In the year-to-date period, the Zacks Rank #2 (Buy) stock has fallen 12.1% compared with Zacks Semiconductor - Analog and Mixed industry’s and the Zacks Computer and Technology sector’s fall of 11.3% and 12.8%, respectively.
Other Stocks to Consider
While Microchip is a good stock to buy for the portfolio, here are some other top-ranked stocks worth considering in the broader Computer and technology sector, including Advanced Micro Devices (AMD - Free Report) , Silicon Laboratories (SLAB - Free Report) and ON Semiconductor (ON - Free Report) .
AMD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the year-to-date period, AMD’s shares have fallen 19.4% compared with the Zacks Electronics - Semiconductors’ decline of 12.2%.
Silicon Laboratories flaunts a Zacks Rank #1.
In the year-to-date period, SLAB’s shares have slumped 25.9% compared with Zacks Semiconductor - Analog and Mixed industry’s decline of 11.3%.
ON Semiconductor carries a Zacks Rank #1.
In the year-to-date period, ON shares have decreased 8.8% compared with Zacks Semiconductor - Analog and Mixed industry’s decline of 11.3%.