### Summary
Microchip Technology's stock has dropped over 15% from its all-time highs due to the semiconductor industry downturn, despite being an AI chip company.
### Facts
- Microchip reported revenue of $2.29 billion for its fiscal 2024 first quarter, up 2.5% from the previous quarter and 16.6% from the same period last year.
- Operating profit margin was over 48%, leading to a nearly 20% increase in adjusted earnings per share.
- Microchip has been increasing its dividend payout and repurchasing stock with its rising profitability.
- The stock sell-off is due to global economic concerns and a slight dip in year-over-year growth guidance for the next quarter.
- Microchip is outperforming competitors like Texas Instruments, NXP Semiconductor, and Infineon in terms of growth and profit margins.
- The company's full-system design capability and long-term supply arrangements with major customers contribute to its sustained growth.
- Microchip's microcontrollers (MCUs) have diverse applications in industrial automation, self-driving systems, energy optimization, and more.
- The stock trades at a low valuation of 13 times Wall Street analysts' expected earnings for next year.
### 📉 Microchip's stock has dropped over 15% due to semiconductor industry downturn.
### 📈 Microchip reported revenue of $2.29 billion, with a 2.5% increase from the previous quarter and 16.6% increase from the same period last year.
### 💰 The company is increasing dividend payout and stock repurchases with rising profitability.
### 🌍 Global economic concerns and a slight dip in growth guidance have led to the stock sell-off.
### 💪 Microchip is outperforming competitors like Texas Instruments, NXP Semiconductor, and Infineon in growth and profit margins.
### 💻 The company's full-system design capability and supply arrangements with major customers contribute to its sustained growth.
### 🚀 Microcontrollers have diverse applications in industrial automation, self-driving systems, energy optimization, and more.
### 💸 The stock trades at a low valuation of 13 times Wall Street analysts' expected earnings for next year.
Intel Corporation's stock has increased by 50% since reaching a bottom below $25, but it is still in a downtrend and must surpass the $40 to $42 resistance level to enter an uptrend; despite its negative sentiment, the company is expecting higher earnings per share in the future and offers a cheap valuation compared to its competitors.
Intel Corp.'s stock rose after CEO Pat Gelsinger expressed optimism about the company's business, stating that it is tracking above the midpoint of its third-quarter outlook with solid inventory levels and improving market share.
Dell Technologies' stock rises after positive earnings update, with analysts highlighting three drivers for optimism.
Dell Technologies is raising its full-year revenue and profit forecast due to an AI boom and consistent demand for computer hardware and server products, resulting in a significant increase in its stock prices.
Advanced Micro Devices (AMD) stock is rising as investors recognize its potential in the artificial intelligence (AI) hardware market, making it a strong competitor to Nvidia, especially with the launch of its M1300X AI chip in the third quarter of 2023.
Micron Technology is the best AI stock to buy in September due to its potential for a memory market recovery, its progress in high-bandwidth memory (HBM) for AI applications, and its technological lead over rivals in the memory industry.
Tesla's stock is rising after an optimistic report from Morgan Stanley about Tesla's Dojo supercomputer, which could add about $500 billion in value to the company and potentially become a direct revenue generator.
Analysts believe that Microsoft stock will continue to rise due to several catalysts, including the artificial-intelligence trend.
PayPal's shares fell after being downgraded by MoffettNathanson ahead of the upcoming CEO transition, while DoorDash's shares rose after being upgraded by Mizuho Securities based on strong market share and consumer spending on food. Micron Technology also experienced a stock gain after Deutsche Bank upgraded the company, citing potential for beating first-quarter expectations, and Arm Holdings' shares declined as it works to establish its position in the market.
Deutsche Bank has upgraded Micron Technology (MU) to buy, stating that the worst of the downcycle is behind the company and citing encouraging signs on pricing for memory chips, which could potentially benefit the entire semiconductor industry.
Intel's stock is rising as an analyst suggests investors should pay attention to the company's efforts in artificial intelligence.
Micron Technology Inc. could potentially benefit from the rollout of new high-bandwidth memory technology, providing a more diversified option for U.S. investors interested in artificial intelligence.
Despite being in a downturn, both Micron and Intel have the potential for a strong turnaround, with Micron currently demonstrating technology leadership and increasing momentum, making it a potential better buy than Intel.
Micron Technology predicts poor earnings but anticipates a turnaround in the near future.
Micron Technology prepares to increase production and become a supplier to Nvidia, despite forecasting a wider-than-expected loss in the first quarter due to bans on some of its products by the Chinese government.
Micron Technology's fiscal fourth-quarter profit and revenue exceeded expectations, but the company's outlook was mixed as pricing stabilizes, leading to a more than 5% decrease in MU stock.
Micron shares fall on weaker earnings forecast, GameStop appoints new CEO, CarMax's earnings decline due to weakening demand for used cars, Workday lowers long-term subscription growth target, Peloton and Lululemon announce strategic partnership, DigitalBridge's stock rises after business transformation, Concentrix's earnings miss expectations.
Despite a drop in Micron Technology stock and a surprising margin outlook, analysts suggest that it is a good time to buy.
Baird Equity Research predicts a slower uptake for Advanced Micro Devices stock due to delays in the adoption of its artificial intelligence chips.
