Microchip Technology (NASDAQ:MCHP) Reports Weak Q1

Slowing electric vehicle sales at a time when customers are clearing excess inventory have weighed heavily on demand for chips in the automotive industry, hitting chipmakers such as Microchip Technology amid an uncertain economic environment. Customers had built excess inventory to avoid a supply crunch during the pandemic.

Analog chipmaker Microchip Technology (NASDAQ:MCHP) missed analysts' expectations in Q1 CY2024, with revenue down 40.6% year on year. Next quarter's revenue guidance of $1.24 billion also underwhelmed, coming in 8.7% below analysts' estimates.