Here’s Why Truist and Evercore Slashed Their Price Targets on Microchip (MCHP) Farooq Wed, November 11, 2026 at 1:02 PM EST 4 min read MCHP +4.33% ^IXIC +2.23% TFC +0.03% ^GSPC +1.60% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We just published a list of the Analysts Just Slashed Their Price Targets on These 10 Stocks and Microchip Technology (NASDAQ:MCHP) ranked 7th on this list.
Wall Street had its worst day in 19 months last Thursday, with chip stocks leading the selloff. The Nasdaq Composite fell 5.52% to 24,315.00, its biggest one-day drop since the April 2025 tariff announcement. The S&P 500 fell 4.36% to 7,353.73, erasing about $3 trillion in market value and marking its worst day since that same tariff crash. The Dow lost 3.44%.
The Nasdaq is now in a correction, more than 10% below the record close it set last month. Volume was heavy: 26.9 billion shares changed hands, against a 20-session average of 17.7 billion.
The trigger was politics. Investors worried about tighter AI regulation after Democrats won control of Congress, including in states where opposition to new data centers has been growing. The Philadelphia SE Semiconductor index fell more than 12% in one session, its worst day since March 2020. Candidates in both parties had campaigned against AI data centers, Yahoo Finance's Jared Blikre reported.
Melissa Brown, global head of investment decision research at SimCorp, said some newly elected members of Congress and governors want to slow the pace of AI infrastructure development, and that any slowdown would raise concerns. We covered the group's earlier pullback in our list of oversold AI stocks that Wall Street analysts saw 50%+ upside in, published before the selloff.
Jed Ellerbroek, portfolio manager at Argent Capital Management, called Thursday "the capitulation phase for the data center capex beneficiary stocks" and said the size of the moves looked excessive. Chip stocks did bounce on Friday: the semiconductor index rose 4.2% and the Nasdaq gained 1.1% to 24,579.43, and the S&P 500 rose 0.32% to 7,376.86, while the Dow slipped 0.46% to 51,285.73. But the Nasdaq still posted its fourth straight weekly decline, down 3.4% for the week, while the S&P 500 fell 2.7%, its worst week since June, and the Dow fell 0.9%.
Readers weighing how far the technology sector has fallen can also look at our roundup of technology stocks trading near 52-week lows that analysts favor. Through Thursday's close, the S&P 500 was still up 7.4% for 2026 and the Nasdaq up 4.6%. Friday's jobs report showed employers added 165,000 jobs in October, against 59,000 expected, and the unemployment rate fell to 4.1%. Traders expect the Federal Reserve to raise interest rates next month, following a hike in September.
Microchip made it to our list because it has an average upside potential of 45%. Truist maintained a Hold on Microchip Technology on November 6 and cut its price target to $62 from $90. The same day, Evercore ISI analyst Mark Lipacis lowered his target to $75 from $117. The notes point to the same two problems: supply limits and a reset in expectations after the quarter.
Those calls followed the company's latest report. Sales grew 42.2% from a year earlier and beat the company's own guidance, but guidance for the December quarter was $1.573 billion to $1.638 billion, and the stock fell about 10% the next day. CEO Steve Sanghi said AI customers have absorbed foundry and packaging capacity, so lead times on standard parts now run as long as 32 weeks, against a normal four to eight. About $53 million of that quarter's sales came from one-time items, which explains part of the step-down in guidance.
Microchip makes microcontrollers for cars, factory equipment and appliances, and data centers are a minority of its sales. Its Hailo acquisition and edge AI push are covered in our look at why it is buying edge AI on the cheap.
While we acknowledge the risk and potential of MCHP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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