MCHP’s 6.7% One Day Dip Begs The Question: Is NVDA Better Instead?

MCHP: Microchip Technology logo
MCHP
Microchip Technology

NVDA offers superior revenue growth across key periods, better profitability, and relatively lower valuation.

  • NVDA’s quarterly revenue growth was 69.2%, vs. MCHP’s -26.8%.
  • In addition, its Last 12 Months growth came in at 86.2%, ahead of MCHP’s -42.3%.
  • NVDA leads on profitability over both periods – LTM margin of 58.0% and 3-year average of 45.1%.

That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

Valuation & Performance Overview

  MCHP NVDA Preferred
     
Valuation      
P/EBIT Ratio 100.7 48.4 NVDA
     
Revenue Growth      
Last Quarter -26.8% 69.2% NVDA
Last 12 Months -42.3% 86.2% NVDA
Last 3 Year Average -9.4% 94.0% NVDA
     
Operating Margins      
Last 12 Months 8.5% 58.0% NVDA
Last 3 Year Average 26.3% 45.1% NVDA
     
Momentum      
Last 3 Year Return 15.9% 887.5% MCHP

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: MCHP Revenue Comparison | NVDA Revenue Comparison
See more margin details: MCHP Operating Income Comparison | NVDA Operating Income Comparison

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Historical Market Performance

  2020 2021 2022 2023 2024 2025 Total [1] Avg Best
Returns
MCHP Return 34% 27% -18% 31% -35% 33% 56%  
NVDA Return 122% 125% -50% 239% 171% 24% 2701% <===
S&P 500 Return 16% 27% -19% 24% 23% 8% 94%  
Monthly Win Rates [3]
MCHP Win Rate 58% 50% 42% 67% 25% 50%   49%  
NVDA Win Rate 75% 58% 42% 75% 75% 67%   65% <===
S&P 500 Win Rate 58% 75% 42% 67% 75% 50%   61%  
Max Drawdowns [4]
MCHP Max Drawdown -47% -4% -35% -2% -37% -38%   -27%  
NVDA Max Drawdown -16% -11% -62% -2% -4% -30%   -21%  
S&P 500 Max Drawdown -31% -1% -25% -1% -2% -15%   -12% <===

[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year