Tag Archives: mchp

Tech Firms Riding A Bumpy Road With Q3 Earnings Due

With a bevy of tech leaders set to report quarterly earnings, concerns about weakness in China and Europe, a strong dollar and a chip downturn have investors nervous. Worries surfaced Friday as chip stocks got hammered on fears that a downcycle had begun, though the Q3 earnings outlook for the sector is strong. Chip stocks tumbled after Microchip Technology (MCHP) late Thursday warned of weaker-than-expected demand in China and lowered its revenue

Chip Stocks Dive As Industry Enters Downcycle

Chip stocks plummeted Friday amid indications that the semiconductor industry has entered a downcycle. Microchip Technology (MCHP), which historically has been a canary in the coal mine for the overall industry, late Thursday preannounced worse-than-expected fiscal Q2 revenue. Microchip’s report indicates that “the next semiconductor downcycle has arrived, with distributor inventories piling up to reach a tipping point,” Hedgeye Risk Management