Microchip Technology's stock experienced a significant intraday decline of 5.78% on Friday, reflecting heightened investor concern.

The sharp decline follows the chipmaker's forecast for its fourth-quarter profit, which fell below Wall Street estimates. This disappointing guidance has raised concerns about the ongoing impact of a memory supply crunch on the semiconductor industry, prompting continued selling pressure during the trading session.

While several analysts adjusted their price targets on the company throughout the morning, the primary driver of the negative sentiment appears to be the weaker-than-expected profit outlook, which overshadowed other market developments.