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) Debuts 10BASE-T1S Ethernet PHYs for Autos
Read MoreHide Full Article
Microchip Technology (MCHP - Free Report) recently launched its first automotive-qualified Ethernet PHYs, the LAN8670/1/2 10BASE-T1S devices. The devices feature AEC-Q100 Grade 1 qualification and includes the LAN8670, LAN8671 and LAN8672.
These devices are designed to connect low-speed devices, such as sensors and actuators, to a standard Ethernet network in automotive applications. They are also functional safety ready and suitable for ISO 26262 applications.
The devices feature — advanced PHY diagnostics, sleep/wake functionality, enhanced EMC/EMI performance and Time-Sensitive Networking support for time synchronization. They allow multiple Ethernet PHYs to share a common bus line, reducing cabling and switch ports.
Microchip has been a key contributor in the development of the IEEE standards for the automotive-qualified 10BASE-T1S technology. This technology simplifies system design by expanding the reach of Ethernet to the devices that are typically at the very edge of the network.
Microchip Technology Incorporated Price and Consensus
The devices are available to purchase now and are supported with development tools such as EVB-LAN8670-RMII, EVB-LAN8670-USB and MPLAB Harmony v3.
Strong Product Pipeline to Boost Prospects
Per an article by Gartner, the global semiconductor industry is expected to decline by 11.2% in 2023, due to softness in end-market demand, oversupply of chips and price erosion.
Despite a weak industry and economic challenges, Microchip has been benefiting from a robust product pipeline and consistent strength in its analog and microcontroller businesses. Its dominance in 8,16 and 32-bit microcontrollers and strategic acquisitions have been major tailwinds.
Microchip’s shares have outperformed the Zacks Semiconductor – Analog and Mixed industry in the year-to-date period. While MCHP’s shares have gained 31.5%, the sector has increased 30.9%.
One of its peers, onsemi (ON - Free Report) , which operates under the same industry, has been benefiting from solid momentum across Power Solutions and Intelligent Sensing Group. Its increasing dominance in the automotive segment have positively impacted its revenue growth. Shares of onsemi have returned 63.6% in the YTD period.
Microchip expects the strong demand, collaborations and innovative product pipeline to drive the top line in the rest of 2023. Continued advancements in the Ethernet technology are expected to boost clientele and maintain a sustainable revenue growth.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $2.29 billion, indicating growth of 16.55% from the year-ago quarter’s reported figure.
The consensus mark for earnings is unchanged at $1.64 per share in the past 30 days, indicating a year-over-year growth of 19.71%.
Microchip Faces Stiff Competition
Shares of Microchip have underperformed the Zacks Computer and Technology sector, which increased 38% in the year-to-date period.
Microchip has been affected by macroeconomic challenges, increasing lead time and stiff competition. Unfavourable movement in exchange rates continue to affect the top line and undermine its growth potential.
It faces stiff competition in the Ethernet PHY market from players like Marvell Technology (MRVL - Free Report) and Texas Instruments (TXN - Free Report) . Shares of Marvell and TI have increased 76.5% and 10.8% year to date, respectively.
Texas Instruments offers a range of single-pair and standard Ethernet PHYs which feature integrated protection, high immunity, low latency and time-sensitive networking support.
Marvell's Ethernet PHYs cover speeds from 10 Mbps to 400 Gbps and include features such as Fast Retrain, Auto-Media Detect, LinkCrypt and Energy Efficient Ethernet.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microchip (MCHP) Debuts 10BASE-T1S Ethernet PHYs for Autos
Microchip Technology (MCHP - Free Report) recently launched its first automotive-qualified Ethernet PHYs, the LAN8670/1/2 10BASE-T1S devices. The devices feature AEC-Q100 Grade 1 qualification and includes the LAN8670, LAN8671 and LAN8672.
These devices are designed to connect low-speed devices, such as sensors and actuators, to a standard Ethernet network in automotive applications. They are also functional safety ready and suitable for ISO 26262 applications.
The devices feature — advanced PHY diagnostics, sleep/wake functionality, enhanced EMC/EMI performance and Time-Sensitive Networking support for time synchronization. They allow multiple Ethernet PHYs to share a common bus line, reducing cabling and switch ports.
Microchip has been a key contributor in the development of the IEEE standards for the automotive-qualified 10BASE-T1S technology. This technology simplifies system design by expanding the reach of Ethernet to the devices that are typically at the very edge of the network.
Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote
The devices are available to purchase now and are supported with development tools such as EVB-LAN8670-RMII, EVB-LAN8670-USB and MPLAB Harmony v3.
Strong Product Pipeline to Boost Prospects
Per an article by Gartner, the global semiconductor industry is expected to decline by 11.2% in 2023, due to softness in end-market demand, oversupply of chips and price erosion.
Despite a weak industry and economic challenges, Microchip has been benefiting from a robust product pipeline and consistent strength in its analog and microcontroller businesses. Its dominance in 8,16 and 32-bit microcontrollers and strategic acquisitions have been major tailwinds.
Microchip’s shares have outperformed the Zacks Semiconductor – Analog and Mixed industry in the year-to-date period. While MCHP’s shares have gained 31.5%, the sector has increased 30.9%.
One of its peers, onsemi (ON - Free Report) , which operates under the same industry, has been benefiting from solid momentum across Power Solutions and Intelligent Sensing Group. Its increasing dominance in the automotive segment have positively impacted its revenue growth. Shares of onsemi have returned 63.6% in the YTD period.
Microchip expects the strong demand, collaborations and innovative product pipeline to drive the top line in the rest of 2023. Continued advancements in the Ethernet technology are expected to boost clientele and maintain a sustainable revenue growth.
This Zacks Rank #2 (Buy) company projects net sales of $2.255-$2.322 billion for first-quarter fiscal 2024. Non-GAAP earnings are anticipated between $1.63 per share and $1.65 per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $2.29 billion, indicating growth of 16.55% from the year-ago quarter’s reported figure.
The consensus mark for earnings is unchanged at $1.64 per share in the past 30 days, indicating a year-over-year growth of 19.71%.
Microchip Faces Stiff Competition
Shares of Microchip have underperformed the Zacks Computer and Technology sector, which increased 38% in the year-to-date period.
Microchip has been affected by macroeconomic challenges, increasing lead time and stiff competition. Unfavourable movement in exchange rates continue to affect the top line and undermine its growth potential.
It faces stiff competition in the Ethernet PHY market from players like Marvell Technology (MRVL - Free Report) and Texas Instruments (TXN - Free Report) . Shares of Marvell and TI have increased 76.5% and 10.8% year to date, respectively.
Texas Instruments offers a range of single-pair and standard Ethernet PHYs which feature integrated protection, high immunity, low latency and time-sensitive networking support.
Marvell's Ethernet PHYs cover speeds from 10 Mbps to 400 Gbps and include features such as Fast Retrain, Auto-Media Detect, LinkCrypt and Energy Efficient Ethernet.