Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.1%), and DJIA (+0.6%) are higher at midday. 

Microchip (MCHP 74.46, +7.40, +11.03%) provided a significant upward revision for its fiscal Q3 revenue guidance, fueling a surge in the stock as the company signals a definitive end to its recent cyclical downturn. The company now expects net sales to reach approximately $1.185 billion, comfortably exceeding the prior range of $1.109-$1.149 billion.

The company noted a "fairly broad-based recovery" across most end markets, including industrial, automotive, and aerospace. This turnaround indicates that the severe inventory correction, where customers worked through an oversupply of chips accumulated during the pandemic, is largely complete, allowing true demand to reflect in new orders.