### 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.
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