What Happened?
Shares of analog chipmaker Microchip Technology (NASDAQ:MCHP) fell 10.3% in the morning session after the company provided updated guidance for the December 2024 quarter, with expectations for revenue to be close to the low end of its previous forecast of $1.025 to $1.095 billion. Also, the company is closing its Tempe wafer fabrication facility due to elevated inventory levels and ample capacity.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Microchip Technology? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Microchip Technology’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for Microchip Technology and indicate this news significantly impacted the market’s perception of the business.
Microchip Technology is down 23.8% since the beginning of the year, and at $65.96 per share, it is trading 33.7% below its 52-week high of $99.49 from May 2024. Investors who bought $1,000 worth of Microchip Technology’s shares 5 years ago would now be looking at an investment worth $1,436.
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