Microchip Technology Stock Fair Value Calculation – U.S. Invests $162M in Microchip Technology to Expand Chip Production
January 5, 2024
☀️Trending News
Microchip Technology ($NASDAQ:MCHP), a leading semiconductor company, has been awarded $162 million by the United States government to increase its chip manufacturing operations. The funds will be used to expand the company’s production of advanced microprocessors for use in a wide range of consumer and industrial applications. The company designs, develops, manufactures, and markets a range of microcontrollers and analog mixed-signal integrated circuits. These specialized microprocessors enable some of the most innovative products in consumer electronics, automotive, industrial, and healthcare markets. The $162 million investment from the U.S. government is an important milestone for Microchip Technology as it looks to expand its chip production capabilities.
The additional funds will be used to invest in advanced chip fabrication technologies and hiring additional staff to support expanded operations. This funding will help Microchip Technology create more jobs and ensure that the company is equipped to meet the growing demand for its products. The company’s products are essential components in many of today’s most advanced electronics and are widely used in a variety of applications. This additional funding is an important step forward for Microchip Technology’s future growth and success.
Share Price
On Thursday, the U.S. government announced that it would be investing $162 million into Microchip Technology, a company focused on manufacturing semiconductors and other integrated circuits. This investment, according to the White House, is intended to expand the chip production capabilities of the company, thus increasing the number of chips produced here in the U.S. The news of the government’s investment caused a slight dip in the company’s stock, with their opening price of $82.1 and closing price of $83.4, down 1.4% from the prior day’s closing price of $84.6. Despite this minor dip, analysts are optimistic that this injection of capital into the industry will give a significant boost to the chip production capabilities of Microchip Technology.
The U.S. government has taken an important step in investing in Microchip Technology in order to help secure their place as a leader in chip production and to expand the capacity of their operations. It is expected that this new investment will help strengthen the company’s competitive position in the semiconductor industry and create new jobs in the United States. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Microchip Technology. More…
| Total Revenues | Net Income | Net Margin |
| 8.94k | 2.52k | 28.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Microchip Technology. More…
| Operations | Investing | Financing |
| 3.6k | -549.6 | -3.1k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Microchip Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.6k | 9.63k | 12.8 |
Key Ratios Snapshot
Some of the financial key ratios for Microchip Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.6% | 64.6% | 38.4% |
| FCF Margin | ROE | ROA |
| 35.3% | 31.1% | 12.9% |
Analysis – Microchip Technology Stock Fair Value Calculation
At GoodWhale, we have conducted an analysis of MICROCHIP TECHNOLOGY‘s fundamentals. According to our proprietary Valuation Line, the intrinsic value of each MICROCHIP TECHNOLOGY share is approximately $95.1. Currently, the price of a MICROCHIP TECHNOLOGY share is $83.4, implying that the stock is undervalued by 12.3%. This provides an opportunity for investors to purchase undervalued shares at a favorable price. More…
Peers
Microchip Technology Inc is a publicly traded company that designs, develops, and manufactures semiconductor products for a variety of embedded control applications. The company offers microcontrollers, development tools, analog and interface products, wireless and wired connectivity products, memory products, and digital power products. It serves customers in the automotive, communications, computing, consumer, and industrial markets. The company was founded in 1987 and is headquartered in Chandler, Arizona.
Globetronics Technology Bhd is a Malaysia-based company that provides semiconductor assembly and test services. It offers a range of services, including wafer fabrication, wafer probing, final test, packaging, and others. The company serves customers in the automotive, communications, computing, consumer, and industrial markets.
Wafer Works Corp is a Taiwan-based company that provides wafer foundry services. It offers a range of services, including wafer fabrication, final test, and packaging. The company serves customers in the automotive, communications, computing, consumer, and industrial markets.
Skyworks Solutions Inc is a publicly traded company that designs, develops, and manufactures semiconductor products for a variety of radio frequency (RF) and microwave applications. The company offers a range of products, including amplifiers, attenuators, circulators, detectors, diodes, directional couplers, mixers, modulators, oscillators, phase shifters, power dividers/combiners, receivers, switches, and transmitters. It serves customers in the automotive, communications, computing, consumer, industrial, medical, military, and aerospace markets.
– Globetronics Technology Bhd ($KLSE:7022)
Globetronics Technology Bhd is a Malaysian-based company that designs, manufactures and supplies precision sensors, optical and electronic products. The company has a market cap of 696.22M as of 2022 and a Return on Equity of 11.73%. Globetronics Technology Bhd’s products are used in a variety of industries including automotive, healthcare, consumer electronics and industrial.
– Wafer Works Corp ($TPEX:6182)
Wafer Works Corp is a leading provider of semiconductor wafers with a market cap of 21.1B as of 2022. The company has a return on equity of 16.27%. Wafer Works Corp is a leading provider of semiconductor wafers used in the manufacture of integrated circuits. The company’s wafers are used in a variety of electronic devices, including computers, cell phones, and other electronic devices.
– Skyworks Solutions Inc ($NASDAQ:SWKS)
Skyworks Solutions Inc is a company that manufactures radio frequency and microwave semiconductor products. The company has a market cap of 13.11B as of 2022 and a ROE of 25.56%. The company’s products are used in a wide variety of wireless communication applications, including smartphones, tablets, laptops, and other mobile devices.
Summary
Microchip Technology Inc. has recently been awarded a contract of $162 million by the U.S. government to increase its production of semiconductor chips. The increased production of chips is likely to result in increased revenue and profits for the company, and thus may be a good investment opportunity for prospective investors. Analysts expect the company to continue to show strong growth in the coming months and years, making investing in it a potentially lucrative opportunity.
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