Microchip Technology unveils advanced solutions to enhance data center performance, security, and efficiency for AI workloads and scalability.
Quiver AI Summary
Microchip Technology is responding to the rapid growth of artificial intelligence by developing advanced solutions for data centers, which face increasing demands for high performance, security, and reliability. Its comprehensive portfolio includes cutting-edge technologies for connectivity, storage, power management, and data retrieval, essential for addressing modern challenges in data center operations. Key innovations include the 800G Active Electrical Cable Reference Design to simplify high-speed connections, META-DX2+ Ethernet PHYs for enhanced fiber utilization in AI workloads, and high-performance power modules for energy efficiency. Additionally, Microchip offers digital signal controllers to improve power supply efficiency and microprocessors for robust data center management. The company emphasizes its commitment to providing secure, reliable infrastructure solutions that support the escalating requirements of AI and other high-performance applications.
Potential Positives
- Microchip Technology is expanding its product portfolio with advanced technologies tailored for the growing demands of data centers, particularly in AI applications, positioning itself as a leader in this rapidly evolving market.
- The introduction of the 800G Active Electrical Cable Reference Design is a significant innovation that reduces development time, cost, and complexity for AI network solutions, potentially attracting new customers.
- Microchip's high-density power modules and digital signal controllers effectively promote energy efficiency and operational integrity, aligning with modern data center demands for power-sensitive applications.
- The incorporation of robust security features in Microchip’s Secure Root of Trust Controllers enhances system integrity and protects against unauthorized code execution, addressing critical security concerns in data center environments.
Potential Negatives
- The press release does not provide specific sales figures or market share data, potentially suggesting a lack of current competitive performance in a rapidly evolving sector.
- There is no mention of partnerships or collaborations with key industry players, which could imply a limited market influence or reach.
- The focus on advanced technologies may raise concerns about the company's ability to quickly adapt to market changes and customer demands, especially in an industry that is constantly evolving.
FAQ
What technologies is Microchip developing for data centers?
Microchip is developing advanced technologies for connectivity, storage, data retrieval, and workload acceleration in data centers.
How does Microchip's ecosystem address data center challenges?
The ecosystem offers solutions for scalability, security, and performance to meet evolving technology requirements in data centers.
What is the purpose of the 800G Active Electrical Cable Reference Design?
This design reduces development time, cost, and complexity for creating 800G AEC solutions, particularly for generative AI networks.
What benefits do Power Modules provide in data centers?
Microchip's high-density power modules offer energy efficiency, optimal power delivery, and flexibility for space-constrained applications.
How does Microchip ensure secure data center operations?
Microchip employs Secure Root of Trust Controllers to verify firmware, monitor system activity, and authenticate key components for system integrity.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$MCHP Congressional Stock Trading
Members of Congress have traded $MCHP stock 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $MCHP stock by members of Congress over the last 6 months:
- REPRESENTATIVE JULIE JOHNSON sold up to $15,000 on 02/05.
To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.
$MCHP Insider Trading Activity
$MCHP insiders have traded $MCHP stock on the open market 2 times in the past 6 months. Of those trades, 0 have been purchases and 2 have been sales.
Here’s a breakdown of recent trading of $MCHP stock by insiders over the last 6 months:
- JAMES ERIC BJORNHOLT (SENIOR VP AND CFO) has made 0 purchases and 2 sales selling 8,412 shares for an estimated $544,329.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$MCHP Hedge Fund Activity
We have seen 455 institutional investors add shares of $MCHP stock to their portfolio, and 673 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- JPMORGAN CHASE & CO removed 5,237,515 shares (-18.0%) from their portfolio in Q4 2024, for an estimated $300,371,485
- UBS GROUP AG added 4,880,202 shares (+149.2%) to their portfolio in Q4 2024, for an estimated $279,879,584
- CITADEL ADVISORS LLC added 4,661,441 shares (+2544.1%) to their portfolio in Q4 2024, for an estimated $267,333,641
- BANK OF AMERICA CORP /DE/ removed 4,098,764 shares (-38.1%) from their portfolio in Q4 2024, for an estimated $235,064,115
- BARROW HANLEY MEWHINNEY & STRAUSS LLC added 3,912,895 shares (+273.2%) to their portfolio in Q4 2024, for an estimated $224,404,528
- QUBE RESEARCH & TECHNOLOGIES LTD added 3,641,085 shares (+924.4%) to their portfolio in Q4 2024, for an estimated $208,816,224
- WELLINGTON MANAGEMENT GROUP LLP removed 3,389,846 shares (-73.2%) from their portfolio in Q4 2024, for an estimated $194,407,668
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$MCHP Analyst Ratings
Wall Street analysts have issued reports on $MCHP in the last several months. We have seen 4 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- B. Riley issued a "Buy" rating on 04/24/2025
- KeyBanc issued a "Overweight" rating on 12/03/2024
- Citigroup issued a "Buy" rating on 12/03/2024
- Evercore ISI issued a "Outperform" rating on 11/06/2024
To track analyst ratings and price targets for $MCHP, check out Quiver Quantitative's $MCHP forecast page.
$MCHP Price Targets
Multiple analysts have issued price targets for $MCHP recently. We have seen 8 analysts offer price targets for $MCHP in the last 6 months, with a median target of $78.0.
Here are some recent targets:
- An analyst from Truist Financial set a target price of $43.0 on 04/21/2025
- An analyst from Mizuho Securities set a target price of $68.0 on 03/04/2025
- Joseph Moore from Morgan Stanley set a target price of $58.0 on 02/04/2025
- Weston Twigg from KeyBanc set a target price of $90.0 on 12/03/2024
- Rajvindra Gill from Needham set a target price of $85.0 on 11/06/2024
- Mark Lipacis from Evercore ISI set a target price of $95.0 on 11/06/2024
- Melissa Fairbanks from Raymond James set a target price of $95.0 on 11/06/2024
Full Release
CHANDLER, Ariz., April 28, 2025 (GLOBE NEWSWIRE) -- The rapid growth of artificial intelligence (AI) is transforming data centers, creating an unprecedented demand for high-performance, secure, reliable and innovative solutions. Microchip Technology (Nasdaq: MCHP) is addressing these evolving market needs by developing advanced technologies for data center connectivity, storage and data retrieval. Microchip’s data center ecosystem includes a comprehensive portfolio of enabling technologies for workload acceleration, power management, device performance, optimization and control. This ecosystem helps data centers meet the scalability, security and performance challenges of today’s dynamic technology requirements.
Microchip’s portfolio includes high-speed interconnect and storage technologies such as Gen 3, Gen 4 and Gen 5 PCIe ® switches—with Gen 6 and Gen 7 technologies in development—Non-Volatile Memory Express (NVMe ® ), storage and RAID controllers with hardware-based security for enhanced data protection. For connectivity, Microchip offers retimers and Ethernet PHYs to optimize interconnect functionality. Its power management, system monitoring and precise timing solutions are designed to deliver dependable, adaptable and energy-efficient operations for enterprise and hyperscale data center environments.
New and recently released data center solutions:
800G Active Electrical Cable (AEC) Reference Design
- The reference design features the META-DX2C 800G retimer with 112G SerDes and is a comprehensive solution to reduce development time, cost and complexity for creating 800G AEC solutions for generative AI networks.
- It includes an integrated software package implementing the CMIS 5.2 specification on a Microchip 32-bit microcontroller to streamline the development of Quad Small Form-factor Pluggable Double Density (QSFP-DD) and Octal Small Form-factor Pluggable (OSFP) AEC cable products.
META-DX2+ Ethernet Physical Layer Transceivers (PHYs) with Lambda Splitting
- This solution improves Data Center Interconnect (DCI) by maximizing fiber utilization, enabling support for high-speed AI workloads.
- The Lambda Splitting technique works along with coherent optics to distribute traffic across multiple wavelengths, significantly reducing costs and boosting bandwidth efficiency by up to 50%.
LAN9646 6-Port Gigabit Ethernet (GbE) Switch with SGMII Interface
- This 6-port GbE switch with four integrated 10/100/1000BASE-T PHYs supports multiple interface options, including SGMII, RGMII, MII and RMII, making it adaptable for a wide range of networking applications.
- It provides full VLAN and Quality of Service (QoS) support for efficient traffic management and prioritization. It also provides flexible management interface options—such as SPI, I 2 C and MIIM—and is compatible with Linux® DSA.
- Capable of operating within industrial temperature ranges (−40°C to +85°C), the LAN9646 is designed for applications such as stand-alone Ethernet networks, broadband gateways, security and surveillance systems, industrial automation and networked test and measurement equipment.
High-Performance, High-Density Power Module
- The MCPF1412 high-density power module delivers up to 12A of current to a load within a voltage range of 0.6V to 1.8V, while operating from a 16V input. Measuring just 5.8 mm × 4.9 mm × 1.6 mm, this module is optimized for space-constrained applications.
- It is engineered to provide optimal power efficiency while minimizing energy loss, which is critical for modern, power-sensitive applications.
- Its I 2 C and PMBus® interfaces offer significant flexibility for system configuration, real-time monitoring and precise control and adaptability for a wide range of applications.
Digital Signal Controllers (DSCs) for Efficient Power Supply
- dsPIC33A DSCs offer higher clock speeds and advanced control algorithms to enable faster response times and improved energy efficiency for data centers and AI servers.
- Their diagnostic capabilities improve reliability and operational integrity, alongside integrated cryptographic algorithms for firmware attestation and device authentication to help safeguard against tampering and spoofing.
- Designed to handle fluctuating power demands, dsPIC33A DSCs increase efficiency and stability in critical applications like power factor correction, resonant converters and synchronous rectification, meeting the high-performance needs of modern data centers.
Microprocessors (MPUs) for OpenBMC
- These MPUs enable robust Auxiliary Management Control (AMC) in data center subsystems, including power shelves, enterprise storage, JBOD, cooling systems and chassis management.
- Features include Redfish ® protocol (RESTful interface) support, out-of-band management for real-time monitoring, logging and alerting of system health, secure/encrypted data transmission and support for firmware updates and remote reboots.
- Designed to streamline data center management, Microchip's OpenBMC solutions provide essential tools for remote management, system power monitoring and secure updates for reliable and efficient infrastructure management.
“AI is revolutionizing all aspects of the digital landscape and data centers face growing demands for security, AI workload acceleration, system efficiency and reliability,” said Brian McCarson, corporate vice president of Microchip’s data center solutions business unit. “Microchip is committed to delivering the essential building blocks needed to address the technology challenges of modern data centers. From accelerating high-speed connectivity and storage rates to optimizing power and management systems, our innovations are designed to support next-generation AI workloads and deliver scalability for our customers.”
Microchip’s data center solutions include a comprehensive portfolio of Secure Root of Trust Controllers designed to protect system integrity. These controllers take control at power-up, verifying firmware stored in external Flash before it is executed by the system’s CPUs and GPUs, helping prevent unauthorized code execution. Beyond the boot process, they monitor system activity, authenticate auxiliary components such as network interface cards (NICs), host bus adapters (HBAs) and solid-state drives (SSDs), and key system elements like power supplies and RAID configurations. Additionally, the controllers are designed to enable secure system ownership transfer and support robust lifecycle management.
Visit the Data Centers web page and explore recent computing and data center blog articles to learn more about the company’s data center offerings.
Resources
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About Microchip Technology
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Microchip Technology Inc. is a leading provider of smart, connected and secure embedded control and processing solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs which reduce risk while lowering total system cost and time to market. The company’s solutions serve over 100,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at
www.microchip.com
.
Note: The Microchip name and logo, the Microchip logo are registered trademarks of Microchip Technology Incorporated in the U.S.A. and other countries. All other trademarks mentioned herein are the property of their respective companies.
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