Microchip Raises Guidance Amid Early Recovery in Analog Chip Sector

14 days ago

Nathan

"There's a stock called Microchip. This isn't just the microchip sector in particular that you're looking at. I had to double double second guess that myself. Microchip. Um it's in the news because the analog chip maker had lifted its sales forecast and essentially points to an early recovery in the analog chip sector. It counts Texas Instruments as one of its main competitors. We're actually seeing the likes of many of these analog chip makers rally off the back of this positive forecast from Microchip. Now, the analog chip sector has been experiencing a cyclical slump due to an inventory glut and weakening demand, especially from the auto space, but the CEO said that activity booking was very strong in the December quarter, and they raised their guidance off the back of that."

Microchip is noted for raising its sales forecast, signaling an early recovery in the analog chip sector despite previous cyclical challenges. The improved guidance, contrasted with competitors like Texas Instruments, indicates a strengthening demand and better-than-expected activity in the December quarter.

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