TECH - What's Going On With Microchip and NXP Semiconductors Stocks Friday? | Benzinga
Microchip Technology Inc (NASDAQ:MCHP) and NXP Semiconductors NV (NASDAQ:NXPI) shares are trading higher after Mizuho analyst Vijay Rakesh upgraded the stock ratings to Buy from Neutral. The analyst gave price targets of $115 for Microchip and $325 for NXPI.
Rakesh noted that after 2-3 years of underperformance, the Analog group has baked in the 2023-24 slowdown and could start catching up with the SOX, in particular as inventories peak and utilization gets cut across the supply chain despite the overhang of increasing fab capacity and supply.
NXPI has traded in line with the SOX P/E during 2018-22 with strong top-line growth, Rakesh noted. But since the second half of 2022, NXPI has shown a disconnect in P/E to SOX with flat to down top line and ...