1 AI Semiconductor Stock Emerging as a New Leader in Industrial Automation
Shares of Microchip Technology (NASDAQ: MCHP) are down over 15% from all-time highs following its latest quarterly earnings update. The drop had nothing to do with management not once uttering artificial intelligence (AI) or machine learning during its earnings call -- even though this most certainly is an AI chip company.
Rather, the market sold off Microchip because the semiconductor industry downturn has finally come for this company, too. The only difference is, this downturn for Microchip is still equating to year-over-year growth, while some of its peers take it on the chin. If you're looking for a new leader in industrial automation technology (ahem, AI) that also pays a rising dividend, Microchip is a need-to-know stock.
Let's talk first about the most recent financials. For its fiscal 2024 first quarter (the three months ended in June 2023), Microchip reported revenue of $2.29 billion, up 2.5% from the prior quarter and up 16.6% from the same period last year. That was a bit better than the guidance it provided a few months ago.
Source Fool.com
