Shares of Microchip Technology Inc. /zigman2/quotes/208326291/composite MCHP -2.82% surged 4.8% toward a record high in premarket trading Tuesday, after the semiconductor company raised its fiscal third-quarter revenue outlook for the second time in a month, citing the belief that orders had hit bottom in December. The company now expects revenue of $1.281 billion to $1.288 billion, with the midpoint of the guidance range implying a 4% decline from the sequential second quarter. The FactSet consensus was $1.275 billion. The midpoint of the previous guidance range of $1.244 billion to $1.298 billion implied a 5% decline. In December, the company raised the midpoint of its guidance range to imply a 5% decline from a decline of 6%. B. Riley FBR analyst Craig Ellis raised his stock price target to $130 from $115, saying the "unusual" second guidance increase shows that the order recovery "is a little more powerful than we had expected." The stock, on track to open above the Jan. 2 record close of $107.60, as well as the all-time intraday high of $108.09, has rallied 46.0% over the past 12 months through Monday, while the PHLX Semiconductor Index /zigman2/quotes/210598361/realtime SOX -2.99% has climbed 57.3% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.05% has advanced 27.3%.
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Micron leads chip rally on growing memory chip optimism amid CES fanfare