Microchip Tech warns of lower profit as memory supply shortages hit chip industry
The Arizona-based chipmaker expects fourth-quarter earnings to fall short of analyst targets. Shares dropped over five percent amid global supply chain issues.
Insights:
Microchip Technology Incorporated announced on February 5, 2026, that it expects fourth-quarter adjusted earnings to be approximately $0.40 per share, a figure that sits below the $0.48 average estimate previously established by analysts. The US 
US semiconductor firm also issued net sales guidance for the upcoming fourth quarter, projecting a range between $1.24 billion and $1.28 billion.
US semiconductor firm also issued net sales guidance for the upcoming fourth quarter, projecting a range between $1.24 billion and $1.28 billion.The announcement of the lower-than-expected forecast triggered an immediate reaction in the financial markets, with shares of Microchip Technology Incorporated falling more than 5% during extended trading sessions. This decline follows data from LSEG indicating that the company’s projections failed to meet the consensus expectations of market observers.
