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Microchip Launches Touch Controllers: Buy, Sell or Hold the Stock?

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Microchip Technology (MCHP - Free Report) has introduced the MTCH2120, a 12-button, low-power touch controller designed to simplify the transition from mechanical to modern touch buttons or displays. The device offers water-tolerant, robust touch performance and is integrated with MCHP’s unified design ecosystem, making it easier for designers to implement touch capabilities in user interfaces.

The MTCH2120 is the first I2C-based touch controller in Microchip’s growing MTCH family, providing noise-resilient touch functionality and the ability to customize product requirements. Its low-power features allow button grouping to reduce scan activity, lowering power consumption without compromising performance.

Its key features include the Easy Tune tool for automatic sensitivity adjustments, an MPLAB Harmony Host Code Configurator for seamless integration with Microchip MCUs and design validation via the MPLAB Data Visualizer. It also supports I2C port expansion and leverages Microchip’s touch library to reduce software complexity. An evaluation board with a SAM C21 host MCU enables quick prototyping.

Can MCHP's Expanding Touch Portfolio Help the Stock Recover?

Microchip’s shares have lost 37.5% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s appreciation of 34.9% and the Zacks Semiconductor - Analog and Mixed industry’s decline of 4.8%.

The company has also lagged its industry peers, including MACOM Technology Solutions (MTSI - Free Report) , Analog Devices (ADI - Free Report) and MaxLinear (MXL - Free Report) , over the same timeframe.

While MACOM Technology and Analog Devices shares have lost 42.5% and 4.6%, respectively, MaxLinear’s shares have fallen 18.4%.

Microchip is expanding its touch solutions portfolio with products such as the MTCH2120 and the MTCH family, including the MTCH1010, MTCH1030 and MTCH1060. These solutions deliver reliable touch performance and feature an uncomplicated GPIO interface.

Microchip’s I2C-based and GPIO touch controllers allow it to serve in broader markets, like electronics, smart homes and industrial devices, thereby boosting its revenue potential.

MCHP's unified design ecosystem streamlines product development and speeds up time-to-market, driving higher adoption of its solutions and increasing sales.

Leveraging decades of expertise, Microchip delivers advanced features like noise and moisture tolerance, low power consumption and easy design integration, making its products attractive to OEMs and developers. This innovation builds competitive advantage and customer loyalty.

MCHP’s Earnings Estimates Show Downward Trend

The Zacks Consensus Estimate for MCHP’s third-quarter fiscal 2025 earnings has been lowered by 3 cents to 29 cents per share in the past 30 days. The estimate indicates a 73.15% year-over-year decline.

The consensus estimate for third-quarter fiscal 2025 sales is pegged at $1.06 billion, indicating a year-over-year decline of 40.20%.

The Zacks Consensus Estimate for MCHP’s fiscal 2025 earnings has declined by 7 cents to $1.59 per share in the past 30 days. The estimate indicates a 67.68% decline from the fiscal 2024 figure.

The consensus estimate for fiscal 2025 sales is pegged at $4.57 billion, indicating a decrease of 40.19% from the fiscal 2024  figure.

Zacks Rank

Microchip currently carries a Zacks Rank #5 (Strong Sell), which implies that investors should stay away from the stock for the time being. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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