Microchip Technology extends AI data center push, shares under pressure after Nasdaq selloff

By Stefan Krueger, Long-Term & Business Model desk. Reviewed prior to publication on 2026-06-27, 11:49.

Microchip Technology (US5950171042) closed the latest Nasdaq session at 87.93 US dollars on 2026-06-26 after a marked pullback in US technology names. The chip designer remains a focus name in the semiconductor complex as analysts highlight its growing exposure to AI data center and embedded applications.

What the latest numbers show

According to data compiled by MarketScreener, Microchip Technology shares fell 6.58 percent on Friday to 87.93 dollars, with intraday trading between 86.84 and 91.24 dollars and volume above 31 million shares. The move came as US tech stocks broadly traded lower, with AI beneficiaries such as Micron Technology and other chip peers also giving back recent gains.

Fundamentally, Microchip last reported quarterly revenue of about 1.31 billion dollars and earnings per share of 0.57 dollars, ahead of a 0.50 dollar consensus estimate at the time of publication. The result underlined a still-profitable business model despite cyclical softness in parts of the industrial and automotive demand chain.

Analyst targets and AI data center angle

On the sell-side, recent commentary collated by Intellectia shows Morgan Stanley maintaining an Equal Weight rating on Microchip with a 94 dollar price target, while Barclays analyst Tom O'Malley lifted his target to 105 dollars, also at Equal Weight. Intellectia cites an expanding data center revenue contribution and selective pricing increases as key arguments in the current analyst framework.

The same Intellectia summary notes that Microchip shares had previously reacted positively when the company provided a first granular breakout of data center revenues linked to AI workloads and signaled targeted price increases in selected product lines. This AI-linked positioning puts the stock in the same broader investment conversation as Micron Technology, which recently reported a sharp jump in revenue tied to AI memory demand.

The products behind the revenue

Microchip generates its cash flow primarily with microcontrollers, analog and mixed-signal integrated circuits and related development tools for embedded and edge applications. A representative example is its space-grade DSA504RT radiation-tolerant six-output programmable clock generator, aimed at satellite and aerospace systems that require precise timing under harsh conditions.

Where the stock trades today

The Microchip Technology shares (US5950171042) last traded on Nasdaq on 2026-06-26 at 87.93 US dollars at the regular close, with a market capitalization of roughly 47 billion dollars based on available exchange data.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or any other form of financial guidance.