MCHP

Microchip Technology (MCHP) has demonstrated a consistent pattern of beating earnings estimates, with an average surprise of 11.29% over the past two quarters. The company's positive Earnings ESP of +3.31% combined with its Zacks Rank #3 (Hold) rating suggests another potential earnings beat is likely. Stocks with this combination historically beat consensus estimates nearly 70% of the time.

The article highlights two computer and technology stocks with positive Earnings Surprise Prediction (ESP) metrics that could outperform expectations: Texas Instruments (TXN) with a +1.81% ESP and a #2 Buy rating, and Microchip Technology (MCHP) with a +3.31% ESP and a #3 Hold rating. Both stocks are positioned to potentially deliver positive earnings surprises based on analyst revisions.

Microchip Technology launched new 10BASE-T1S transceivers and endpoints (LAN8679, LAN8680, LAN8660X/1X/2X) targeting automotive, industrial, robotics and aerospace applications. The expanded portfolio reduces wiring complexity and costs by connecting multiple nodes on a single bus.

Industrial and automotive revenues grew 24.3% and 29.3% respectively in Q1 fiscal 2027, with strong order placement and bookings. The company faces competition from Texas Instruments and Analog Devices in the connectivity space.