Mizuho Securities upgraded its price target for Microchip Technology (MCHP) to $180, citing strong execution and resilient demand in industrial and automotive segments. The move reflects a broader shift toward selective positioning within the semiconductor sector.
- Mizuho raised MCHP price target to $180 from prior estimate
- MCHP closed at $160.67 on Dec 20, 2025, implying ~12% upside
- Q4 revenue guidance: $1.08B–$1.12B, above consensus
- Non-GAAP gross margin up 24% YoY
- Mizuho adopting selective stance in semiconductor sector
- Focus on companies with secular growth exposure and margin resilience
Mizuho Securities has raised its price target for Microchip Technology (MCHP) to $180, marking a significant increase from its previous estimate. The firm maintains a 'Buy' rating, emphasizing Microchip’s leadership in embedded processing and its robust visibility across industrial, automotive, and communications end markets. This upgrade comes amid a strategic pivot by Mizuho to focus on semiconductor stocks with differentiated growth drivers and stable margins, as macroeconomic uncertainty and inventory corrections have led to increased sector volatility. The $180 target implies a nearly 12% upside from MCHP’s closing price of $160.67 on December 20, 2025. The firm cited fourth-quarter revenue guidance of $1.08 billion to $1.12 billion, which exceeds consensus expectations, alongside a 24% year-over-year increase in non-GAAP gross margin. These metrics underscore Microchip’s ability to maintain profitability despite cyclical headwinds. Investors are likely to view this move as a vote of confidence in Microchip’s operational resilience and long-term positioning. The selective approach by Mizuho suggests that not all semiconductor names are equally attractive, with focus now on companies with strong balance sheets, diversified product portfolios, and exposure to secular growth areas such as electric vehicles and industrial automation.