Does Microchip’s New MCP9604 Thermocouple IC Strengthen Its Edge in Industrial Solutions for MCHP?

• In September 2025, Microchip Technology introduced the MCP9604, a single-chip, four-channel thermocouple conditioning IC providing up to ±1.5°C accuracy for critical industrial, medical, and refrigeration applications, addressing integration challenges and reducing system complexity.
• This device leverages advanced NIST ITS-90 equations for enhanced measurement accuracy and represents a step forward in simplifying validation and cutting manufacturing costs for temperature-sensitive production environments.
• We'll examine how Microchip's new MCP9604 IC and broadening product portfolio could influence its long-term investment thesis and growth outlook.

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Microchip Technology Investment Narrative Recap

To consider owning Microchip Technology, an investor needs confidence in the rebound potential of its end markets and the company’s ability to capitalize on demand for semiconductors in industrial, automotive, and data center applications. While the MCP9604 launch signals innovation in temperature measurement, it does not materially shift the near-term catalyst of margin improvement, which remains constrained by elevated inventory levels and ongoing underutilization charges, nor does it mitigate the primary risk tied to slow inventory normalization and persistent financial leverage.

Among recent company news, Microchip’s launch of the LAN9645xF and LAN9645xS Gigabit Ethernet Switches stands out, as it reinforces the company’s ongoing expansion into data center and industrial automation markets, sectors seen as critical to revitalizing revenue streams and supporting future growth as inventory-related headwinds subside.

However, investors should also be aware that despite product innovation, the implications of continued high inventory and limited margin flexibility may become more pronounced if...

Read the full narrative on Microchip Technology (it's free!)

Microchip Technology's outlook envisions $6.6 billion in revenue and $1.4 billion in earnings by 2028. Achieving this would require an annual revenue growth rate of 15.9% and a $1.58 billion increase in earnings from the current level of -$178.4 million.

Uncover how Microchip Technology's forecasts yield a $76.00 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community range widely from US$22.39 to US$90, showing real differences in opinion. Persistent headwinds from elevated inventory and factory underutilization could shape the path forward, so take the time to compare these perspectives for a fuller picture.

Explore 7 other fair value estimates on Microchip Technology - why the stock might be worth as much as 35% more than the current price!

Build Your Own Microchip Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Microchip Technology research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Microchip Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Microchip Technology's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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