** Microchip Technology's MCHP.O shares up 12.6% at $55.35 early Fri after upbeat current-qtr guidance

** MCHP jumps as much as 18.2% to $58.06, a two-mth high

** Chandler, Arizona-based chipmaker late Thurs forecast fiscal Q1 earnings and rev above Wall Street's expectations, signaling recovery in demand

** It expects Q1 adj EPS of 18-26 cents, well above analysts' estimate of 16 cents, and sees net sales of $1.02-$1.07 mln vs estimate of $987.6 mln

** BofA Global Research raises rating to 'neutral' from 'underperform' and hikes PT to $56 from $44

** Upgrade given signs of a potential cyclical upturn while CEO Steve Sanghi's turnaround efforts accelerate EPS leverage - BofA

** At least four other brokerages boost their PTs, including Morgan Stanley to $50 from $39 and Stifel to $70 from $60

** With move on the session, MCHP down ~3% YTD vs 10% decline in Philadelphia Semiconductor Index .SOX and 8% drop in S&P 500 Tech sector .SPLRCT

** Stock about 45% below its 52-week intraday high of $100.57 hit on May 24, 2024

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))