Investors have been getting yet another reminder over the last two months that stocks don't go up in a straight line. A myriad of worries cropped up this summer, including higher interest rates, higher oil prices (a key contributor to stubborn inflation), and renewed predictions of a coming recession. 

After reaching new all-time highs over the summer, shares of Microchip Technology (NASDAQ: MCHP) have fallen nearly 20% in the market pullback. Why is it down, and is it time to buy the dip in this top semiconductor stock?  

After the last quarterly earnings update in August, I wrote about Microchip's stellar performance even as many of its peers specializing in chips for industrial use have taken a tumble in the past year. A fairly steep drop in semiconductor demand has cropped up this year, but the company has outperformed with its so-called "total system design" expertise that spans customized chips to software that runs on them. 

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Source Fool.com