Microchip Trading Volume Surges to $1.25B Ranking 66th as Shares Dip 6.57 on Earnings Reaction

On August 8, 2025, Microchip Technology (MCHP) saw a 37.63% surge in trading volume to $1.25 billion, ranking 66th in market activity. The stock closed down 6.57%, reflecting investor reaction to recent earnings and guidance.

Microchip reported Q2 CY2025 results with revenue of $1.08 billion, surpassing Wall Street estimates by 1.7% despite a 13.4% year-on-year decline. Non-GAAP earnings per share (EPS) of $0.27 exceeded expectations by 13.2%. The company raised its adjusted EBITDA to $285.8 million and guided for Q3 revenue of $1.13 billion, in line with analyst forecasts. CEO Steve Sanghi highlighted progress under the nine-point recovery plan, noting improved operational efficiency and inventory management.

Inventory days outstanding fell to 213, down from 251 in the prior quarter, signaling better inventory control. However, operating margins contracted to 3% from 17.7% in the same period last year. The firm also announced a quarterly dividend of $0.455 per share, yielding 2.7% annually. Analysts remain divided, with some raising price targets amid signs of demand recovery, while others caution about macroeconomic uncertainties.

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