Tearsheet

Microchip Technology (MCHP)


Market Price (12/23/2025): $66.32 | Market Cap: $35.8 Bil
Sector: Information Technology | Industry: Semiconductors

Microchip Technology (MCHP)


Market Price (12/23/2025): $66.32
Market Cap: $35.8 Bil
Sector: Information Technology
Industry: Semiconductors

Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.


0 Attractive cash flow generation
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 20%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 18%
Weak multi-year price returns
2Y Excs Rtn is -69%, 3Y Excs Rtn is -79%
Expensive valuation multiples
P/EBITPrice/EBIT or Price/(Operating Income) ratio is 755x
1 Attractive yield
Dividend Yield is 2.1%
  Weak revenue growth
Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is -23%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -15%, Rev Chg QQuarterly Revenue Change % is -2.0%
2 Megatrend and thematic drivers
Megatrends include Artificial Intelligence, and Automation & Robotics. Themes include Edge AI, Industrial Robotics, Show more.
  Yield minus risk free rate is negative
ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.7%
3   Key risks
MCHP key risks include [1] high inventory levels and margin compression driven by a prolonged downturn in its key automotive and industrial segments.
0 Attractive cash flow generation
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 20%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 18%
1 Attractive yield
Dividend Yield is 2.1%
2 Megatrend and thematic drivers
Megatrends include Artificial Intelligence, and Automation & Robotics. Themes include Edge AI, Industrial Robotics, Show more.
3 Weak multi-year price returns
2Y Excs Rtn is -69%, 3Y Excs Rtn is -79%
4 Expensive valuation multiples
P/EBITPrice/EBIT or Price/(Operating Income) ratio is 755x
5 Weak revenue growth
Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is -23%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -15%, Rev Chg QQuarterly Revenue Change % is -2.0%
6 Yield minus risk free rate is negative
ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.7%
7 Key risks
MCHP key risks include [1] high inventory levels and margin compression driven by a prolonged downturn in its key automotive and industrial segments.

Valuation, Metrics & Events

MCHP Stock


Why The Stock Moved


Qualitative Assessment

AI Analysis | Feedback

Here are five key points explaining the movement of Microchip Technology (MCHP) stock during the approximate period from August 31, 2025, to December 23, 2025: 1. Positive Analyst Rating Upgrades and Price Target Revisions.

Microchip Technology received favorable attention from analysts, notably an upgrade from Cantor Fitzgerald on December 16, 2025, raising its rating from "neutral" to "overweight" with an increased price target of $85.00, suggesting a potential upside of over 26%. Other firms like Needham & Company LLC and Rosenblatt Securities also maintained or reiterated "buy" ratings with optimistic price targets in early December 2025. These analyst actions likely bolstered investor confidence and contributed to upward stock momentum, as evidenced by a significant daily stock jump of over 12% on December 3, 2025.

2. Stronger-Than-Expected Fiscal Q2 2026 Earnings.

On November 6, 2025, Microchip Technology announced its earnings results for the quarter, reporting earnings per share (EPS) of $0.35, surpassing analysts' consensus estimates of $0.33. The company also reported revenues of $1.14 billion, slightly exceeding the analyst estimate of $1.13 billion for the quarter. Beating earnings and revenue expectations typically signals healthy company performance and often leads to positive stock price reactions.

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Stock Movement Drivers

Fundamental Drivers

The 2.2% change in MCHP stock from 9/22/2025 to 12/22/2025 was primarily driven by a 2.9% change in the company's P/S Multiple.
922202512222025Change
Stock Price ($)64.8266.242.20%
Change Contribution ByLTMLTM
Total Revenues ($ Mil)4235.804212.40-0.55%
P/S Multiple8.258.492.92%
Shares Outstanding (Mil)539.20540.00-0.15%
Cumulative Contribution2.20%

LTM = Last Twelve Months as of date shown

Market Drivers

9/22/2025 to 12/22/2025
ReturnCorrelation
MCHP2.2% 
Market (SPY)2.7%57.1%
Sector (XLK)2.7%54.8%

Fundamental Drivers

The -1.9% change in MCHP stock from 6/23/2025 to 12/22/2025 was primarily driven by a -4.3% change in the company's Total Revenues ($ Mil).
623202512222025Change
Stock Price ($)67.5066.24-1.87%
Change Contribution ByLTMLTM
Total Revenues ($ Mil)4401.604212.40-4.30%
P/S Multiple8.268.492.83%
Shares Outstanding (Mil)538.50540.00-0.28%
Cumulative Contribution-1.87%

LTM = Last Twelve Months as of date shown

Market Drivers

6/23/2025 to 12/22/2025
ReturnCorrelation
MCHP-1.9% 
Market (SPY)14.4%43.1%
Sector (XLK)19.7%41.3%

Fundamental Drivers

The 23.1% change in MCHP stock from 12/22/2024 to 12/22/2025 was primarily driven by a 61.6% change in the company's P/S Multiple.
1222202412222025Change
Stock Price ($)53.8166.2423.10%
Change Contribution ByLTMLTM
Total Revenues ($ Mil)5496.604212.40-23.36%
P/S Multiple5.258.4961.61%
Shares Outstanding (Mil)536.70540.00-0.61%
Cumulative Contribution23.09%

LTM = Last Twelve Months as of date shown

Market Drivers

12/22/2024 to 12/22/2025
ReturnCorrelation
MCHP23.1% 
Market (SPY)16.9%72.1%
Sector (XLK)23.8%69.5%

Fundamental Drivers

The 1.9% change in MCHP stock from 12/23/2022 to 12/22/2025 was primarily driven by a 80.9% change in the company's P/S Multiple.
1223202212222025Change
Stock Price ($)65.0066.241.90%
Change Contribution ByLTMLTM
Total Revenues ($ Mil)7638.504212.40-44.85%
P/S Multiple4.698.4980.93%
Shares Outstanding (Mil)551.50540.002.09%
Cumulative Contribution1.86%

LTM = Last Twelve Months as of date shown

Market Drivers

12/23/2023 to 12/22/2025
ReturnCorrelation
MCHP-22.5% 
Market (SPY)47.7%68.3%
Sector (XLK)52.9%67.0%

Return vs. Risk


Price Returns Compared

 202020212022202320242025Total [1]
Returns
MCHP Return34%27%-18%31%-35%17%39%
Peers Return30%33%-24%31%-2%48%148%
S&P 500 Return16%27%-19%24%23%17%113%

Monthly Win Rates [3]
MCHP Win Rate58%50%42%67%25%33% 
Peers Win Rate62%62%37%60%43%53% 
S&P 500 Win Rate58%75%42%67%75%73% 

Max Drawdowns [4]
MCHP Max Drawdown-47%-4%-35%-2%-37%-38% 
Peers Max Drawdown-37%-3%-34%-8%-13%-27% 
S&P 500 Max Drawdown-31%-1%-25%-1%-2%-15% 


[1] Cumulative total returns since the beginning of 2020
[2] Peers: MU, TXN, ADI, NXPI, DIOD. See MCHP Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/22/2025 (YTD)

How Low Can It Go

Unique KeyEventMCHPS&P 500
2022 Inflation Shock2022 Inflation Shock  
2022 Inflation Shock% Loss% Loss-37.2%-25.4%
2022 Inflation Shock% Gain to Breakeven% Gain to Breakeven59.2%34.1%
2022 Inflation ShockTime to BreakevenTime to Breakeven360 days464 days
2020 Covid Pandemic2020 Covid Pandemic  
2020 Covid Pandemic% Loss% Loss-49.9%-33.9%
2020 Covid Pandemic% Gain to Breakeven% Gain to Breakeven99.4%51.3%
2020 Covid PandemicTime to BreakevenTime to Breakeven169 days148 days
2018 Correction2018 Correction  
2018 Correction% Loss% Loss-40.7%-19.8%
2018 Correction% Gain to Breakeven% Gain to Breakeven68.5%24.7%
2018 CorrectionTime to BreakevenTime to Breakeven422 days120 days
2008 Global Financial Crisis2008 Global Financial Crisis  
2008 Global Financial Crisis% Loss% Loss-60.6%-56.8%
2008 Global Financial Crisis% Gain to Breakeven% Gain to Breakeven153.5%131.3%
2008 Global Financial CrisisTime to BreakevenTime to Breakeven1,745 days1,480 days

Compare to MU, TXN, ADI, NXPI, DIOD

In The Past

Microchip Technology's stock fell -37.2% during the 2022 Inflation Shock from a high on 12/27/2021. A -37.2% loss requires a 59.2% gain to breakeven.

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About Microchip Technology (MCHP)

Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded microprocessors markets; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications. It also provides development tools that enable system designers to program microcontroller products for specific applications; field-programmable gate array (FPGA) products; and analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products. In addition, the company offers memory products consisting of serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and Smartbits one time programmable NVM technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, and aerospace products. Microchip Technology Incorporated was incorporated in 1989 and is headquartered in Chandler, Arizona.

AI Analysis | Feedback

Here are 1-2 brief analogies for Microchip Technology (MCHP):

  • Like **Texas Instruments (TI)** for microcontrollers and embedded systems.
  • A highly diversified **Texas Instruments (TI)** that provides the 'brains' (microcontrollers) and 'senses' (analog chips) for countless electronic devices.

AI Analysis | Feedback

  • Microcontrollers (MCUs): Tiny, specialized computers embedded in countless electronic devices to control their specific functions.
  • Microprocessors (MPUs): More powerful programmable logic chips used in complex embedded systems, often running operating systems.
  • Analog & Mixed-Signal Products: Components that manage power, amplify signals, convert data, and handle various real-world electrical functions.
  • Field-Programmable Gate Arrays (FPGAs): Integrated circuits that can be configured by a customer or designer after manufacturing, providing flexible logic.
  • Wireless Connectivity Solutions: Integrated circuits and modules enabling devices to communicate wirelessly via standards like Wi-Fi, Bluetooth, and LoRa.
  • Timing & Synchronization Products: Devices providing precise clock signals and synchronization for various electronic systems and networks.

AI Analysis | Feedback

Microchip Technology (MCHP) primarily operates on a Business-to-Business (B2B) model, selling its semiconductor products to other companies rather than directly to individuals.

Based on their latest public filings, Microchip Technology serves a broad and diverse customer base. No single customer accounted for 10% or more of their net sales in fiscal years 2023, 2022, or 2021. This indicates that MCHP does not have a few concentrated "major customers" in the traditional financial reporting sense.

Instead, Microchip Technology's customer base consists of thousands of Original Equipment Manufacturers (OEMs), distributors, and contract manufacturers worldwide. These customers integrate MCHP's microcontrollers, analog, mixed-signal, and flash-IP solutions into a wide array of electronic products across various industries.

While Microchip Technology does not publicly disclose specific names of its individual major customers due to the fragmented nature of its sales, its components are widely used by companies in the following key markets. Below are examples of prominent companies within these markets that typically utilize semiconductor components like those offered by Microchip, and are therefore representative of their potential customer types:

  • Automotive: Companies manufacturing vehicles or automotive electronics, e.g., Continental AG (XTRA: CON)
  • Industrial: Companies producing industrial automation, smart energy, and medical devices, e.g., Siemens AG (XTRA: SIE)
  • Computing & Consumer: Manufacturers of personal computers, servers, networking equipment, and consumer electronics, e.g., Apple Inc. (NASDAQ: AAPL), Dell Technologies Inc. (NYSE: DELL), Cisco Systems, Inc. (NASDAQ: CSCO)

AI Analysis | Feedback

  • Taiwan Semiconductor Manufacturing Company Limited (TSM)
  • United Microelectronics Corporation (UMC)

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Steve Sanghi, Chair of the Board, CEO and President

Steve Sanghi was appointed Chief Executive Officer and President of Microchip Technology in November 2024, and also serves as Chair of the Board. He previously held the CEO role from October 1991 to March 2021. Prior to joining Microchip in February 1990, Mr. Sanghi started his career at Intel Corporation, where he rose to become General Manager of their programmable memory products division. He then served as Vice President of Operations at Waferscale Integration, a startup company. Companies he was previously involved with that were acquired include Waferscale Integration (acquired by STMicroelectronics NV in 2000) and Adflex Solutions, Inc. (acquired by Innovex, Inc. in 1999). Mr. Sanghi has also served on the boards of several other companies, including Mellanox Technologies Ltd., Hittite Microwave Corp., Xyratex Technology Ltd., FlipChip International LLC, Adflex Solutions Inc., Artisoft Inc., and Myomo Inc., and currently serves on the boards of Intel Corp and Impinj Inc.

Eric Bjornholt, Senior Corporate Vice President, Chief Financial Officer

Eric Bjornholt joined Microchip Technology in 1995 and has served as its Chief Financial Officer since 2009, in addition to his role as Senior Vice President. Before his tenure at Microchip, Mr. Bjornholt gained experience working for KPMG LLP.

Richard J. Simoncic, Chief Operating Officer

Richard J. Simoncic became Chief Operating Officer of Microchip Technology in April 2024, having joined the company as a new college graduate in 1989. He is recognized for founding Microchip's internal analog business in 1998, which he grew to achieve over $2 billion in annual revenue.

Michael A. Finley, Senior Corporate Vice President, Operations

Michael A. Finley joined Microchip Technology in 1990 and holds the position of Senior Vice President of Fab Operations. Prior to joining Microchip, he spent 10 years working in fab operations at Intel Corporation.

Joseph R. Krawczyk, Senior Corporate Vice President, Worldwide Client Engagement

Joseph R. Krawczyk has been with Microchip Technology since 1995, currently serving as Senior Vice President of Worldwide Client Engagement. His career at Microchip includes various leadership roles such as U.S. Southeast sales manager, ASEAN regional sales manager, and Vice President of Asia Pacific Client Engagement. Before Microchip, Mr. Krawczyk spent 14 years at Texas Instruments in engineering, marketing, and management capacities.

AI Analysis | Feedback

The key risks to Microchip Technology (MCHP) are primarily driven by the inherent characteristics of the semiconductor industry and global economic and political dynamics.

  1. Cyclical Nature of the Semiconductor Industry and Inventory Fluctuations: Microchip Technology is significantly exposed to the cyclical nature of the semiconductor industry, which leads to substantial fluctuations in demand and revenue. The company has recently faced challenges such as revenue declines, margin compression, and high inventory levels, indicating a market in correction. Prolonged downturns, especially in its key automotive and industrial segments, could critically erode revenue and pressure operating margins.
  2. Geopolitical Risks and Supply Chain Disruptions: The global nature of the semiconductor supply chain makes Microchip Technology highly vulnerable to geopolitical tensions, trade disputes (particularly between the U.S. and China), and political instability. These factors can disrupt the flow of critical components, equipment, and raw materials (like rare earth metals predominantly sourced from China), impacting production and market access. Such disruptions increase capital costs for companies like Microchip and necessitate a balance between reshoring incentives and operational efficiency.
  3. Intensifying Competition and Rapid Technological Change: Microchip Technology operates in a highly competitive and fast-evolving semiconductor market. It faces intense competition from both established players with greater resources and emerging companies that are constantly developing new and improved products. This competitive pressure, coupled with rapid technological advancements, demands continuous innovation and substantial research and development (R&D) investments to maintain technological leadership, prevent product obsolescence, and avoid price erosion.

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RISC-V Adoption: The rapid rise and industry backing of RISC-V, an open-standard instruction set architecture (ISA), poses a significant emerging threat. Unlike proprietary architectures like ARM (which Microchip licenses for some products) or their own PIC and AVR architectures, RISC-V is free to use, customize, and extend. This could lead to a proliferation of lower-cost, highly optimized custom processors from competitors and customers alike. As the RISC-V ecosystem matures with robust development tools, software libraries, and widespread developer support (backed by major players like Google, Intel, NVIDIA, and Qualcomm), it could divert designs away from Microchip's established microcontroller and embedded processor offerings across key markets like IoT, automotive, and industrial. This shift threatens to commoditize the core ISA layer and erode Microchip's competitive advantage derived from its proprietary architectures and extensive ARM licensing.

Hyperscalers and Large Tech Companies Designing Custom Silicon: Major customers of Microchip, including hyperscale cloud providers and large tech companies (e.g., Amazon, Google, Tesla, Apple, Microsoft), are increasingly designing their own highly specialized integrated circuits for internal use. These custom chips range from advanced CPUs/GPUs/AI accelerators to integrated system-on-chips (SoCs) that incorporate embedded control, power management, and interface functions that Microchip typically provides off-the-shelf. This trend reduces the demand for Microchip's standard products in high-volume, strategic applications within these companies. It could force Microchip to shift its business model from selling complete solutions to potentially supplying intellectual property (IP) or highly niche components, impacting market share, revenue streams, and profit margins in critical growth segments.

AI Analysis | Feedback

The addressable markets for Microchip Technology's main products or services are as follows:

  • Microcontrollers (MCUs): The global microcontroller market size was estimated at USD 36.22 billion in 2024 and is projected to reach USD 105.32 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 12.8% from 2025 to 2033.
  • Analog Semiconductors: The global analog semiconductor market size was valued at USD 101.22 billion in 2024 and is predicted to increase from USD 107.23 billion in 2025 to approximately USD 180.24 billion by 2034, expanding at a CAGR of 5.94% from 2025 to 2034.
  • Mixed-Signal ICs: The global mixed-signal IC market size was valued at USD 127.5 billion in 2024 and is estimated to reach USD 188.7 billion by 2033, exhibiting a CAGR of 4.5% during 2025-2033.
  • Field Programmable Gate Arrays (FPGAs): The global FPGA market was valued at USD 13.63 billion in 2024 and is expected to grow at a CAGR of 10.30% from 2025 to 2034.
  • Power Management ICs (PMICs): The global power management IC market size accounted for USD 40.86 billion in 2024 and is expected to exceed USD 79.11 billion by 2034, growing at a CAGR of 6.83% from 2025 to 2034.
  • Wireless Connectivity: The global wireless connectivity market size was estimated at USD 103.87 billion in 2024 and is predicted to increase from USD 118.32 billion in 2025 to approximately USD 373.00 billion by 2034, expanding at a CAGR of 13.64% from 2025 to 2034.

AI Analysis | Feedback

Microchip Technology (MCHP) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market trends:

  1. Alignment with Megatrends: Microchip is strategically focusing on and aligning its product offerings with significant industry megatrends such as AI/ML, data centers, E-Mobility, the Internet of Things (IoT), sustainability, and networking/connectivity. This strategic alignment is intended to capture sustainable future growth in high-growth areas. The company's expertise in embedded systems, analog and interface technologies, and security solutions positions it well within these markets.
  2. Product Innovation and Expansion into High-Growth Markets: The company consistently invests in research and development to introduce new and improved products. Microchip is actively expanding its presence in critical markets like automotive, industrial, and data centers. Notably, the automotive sector significantly increased its revenue contribution from fiscal 2024 to fiscal 2025. Furthermore, the microcontroller (MCU) business has shown strong sequential growth, particularly from 32-bit MCUs, and Microchip has entered the 64-bit embedded microprocessor market to strengthen its position in AI-enabled edge solutions.
  3. Strategic Acquisitions: Microchip has a history of utilizing carefully planned acquisitions to expand its product offerings, enhance technological capabilities, and diversify revenue streams. The successful integration of these acquired companies has generated synergies and cost savings, which further supports the company's long-term growth foundation.
  4. Strong Design-in Activity and Total System Solution (TSS) Approach: The company boasts a robust design-in pipeline across its various end markets, megatrends, and key customers, which is anticipated to fuel above-market long-term growth. Microchip's comprehensive product portfolio, known as the Total System Solution (TSS), offers a streamlined approach for design engineers, facilitating quicker market entry and ensuring product longevity.
  5. Recovery from Inventory Correction and Increased Demand: After navigating a significant inventory correction within the semiconductor industry, Microchip is experiencing a recovery driven by inventory adjustments. Management expects this above-seasonal growth to continue, with strong bookings and extending product lead times indicating tightening supply and increasing demand.

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Share Repurchases

  • Microchip Technology's Board of Directors authorized a new program on November 8, 2021, to purchase up to $4.0 billion of its common stock. This replaced a previous program to repurchase up to 30 million shares.
  • From fiscal year 2019 through the first quarter of fiscal year 2026, the company allocated approximately $2.4 billion to share repurchases.
  • These repurchases are expected to be funded through available cash flow from operations, after capital expenditures and dividend payments.

Outbound Investments

  • Microchip Technology has pursued strategic acquisitions to expand its market presence and technological capabilities.
  • In April 2024, Microchip acquired Neuronix AI, an AI-based computer vision provider, for an undisclosed amount.
  • Other recent acquisitions include IconicRF in December 2021 and LegUp Computing and Tekron in October 2020, all for undisclosed amounts.

Capital Expenditures

  • Capital expenditures averaged $272 million annually from fiscal years ending March 2021 to 2025. The peak was $486.2 million in March 2023, while the low was $92.6 million in March 2021.
  • For fiscal year 2025, capital expenditures are expected to be approximately $135 million.
  • Microchip anticipates capital expenditures for fiscal year 2026 to be at or below $100 million, reflecting a pause in most factory expansion actions and reduced planned investments due to a slowing macroeconomic environment.

Better Bets than Microchip Technology (MCHP)

Trade Ideas

Select ideas related to MCHP. For more, see Trefis Trade Ideas.

Unique KeyDateTickerCompanyCategoryTrade Strategy6M Fwd Rtn12M Fwd Rtn12M Max DD
ENPH_11302025_Dip_Buyer_High_CFO_Margins_ExInd_DE11302025ENPHEnphase EnergyDip BuyDB | CFO/Rev | Low D/EDip Buy with High Cash Flow Margins
Buying dips for companies with significant cash flows from operations and reasonable debt / market cap
16.1%16.1%-0.9%
PD_11262025_Dip_Buyer_High_FCF_Yield_ExInd_DE_RevG11262025PDPagerDutyDip BuyDB | FCF Yield | Low D/EDip Buy with High Free Cash Flow Yield
Buying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap
12.0%12.0%0.0%
CRM_11212025_Dip_Buyer_FCFYield11212025CRMSalesforceDip BuyDB | FCFY OPMDip Buy with High FCF Yield and High Margin
Buying dips for companies with high FCF yield and meaningfully high operating margin
16.7%16.7%-0.1%
HUBS_11212025_Dip_Buyer_High_CFO_Margins_ExInd_DE11212025HUBSHubSpotDip BuyDB | CFO/Rev | Low D/EDip Buy with High Cash Flow Margins
Buying dips for companies with significant cash flows from operations and reasonable debt / market cap
12.8%12.8%0.0%
FIVN_11212025_Dip_Buyer_High_FCF_Yield_ExInd_DE_RevG11212025FIVNFive9Dip BuyDB | FCF Yield | Low D/EDip Buy with High Free Cash Flow Yield
Buying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap
7.8%7.8%0.0%
MCHP_10312022_Monopoly_xInd_xCD_Getting_Cheaper10312022MCHPMicrochip TechnologyMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
23.2%17.7%-3.7%
MCHP_4302022_Monopoly_xInd_xCD_Getting_Cheaper04302022MCHPMicrochip TechnologyMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
-2.6%13.9%-13.5%
MCHP_3312020_Monopoly_xInd_xCD_Getting_Cheaper03312020MCHPMicrochip TechnologyMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
52.7%131.9%-7.4%
MCHP_3312019_Monopoly_xInd_xCD_Getting_Cheaper03312019MCHPMicrochip TechnologyMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
11.0%-15.5%-31.7%
MCHP_9302018_Monopoly_xInd_xCD_Getting_Cheaper09302018MCHPMicrochip TechnologyMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
6.1%19.8%-22.3%

Recent Active Movers

More From Trefis

Peer Comparisons for Microchip Technology

Peers to compare with:

Financials

MCHPMUTXNADINXPIDIODMedian
NameMicrochi.Micron T.Texas In.Analog D.NXP Semi.Diodes  
Mkt Price66.24276.59178.82275.82228.9450.57203.88
Mkt Cap35.8311.2162.5135.457.72.396.6
Rev LTM4,21242,31217,26611,02012,0451,43011,532
Op Inc LTM15513,7716,0123,0023,001333,002
FCF LTM7544,6522,0804,2791,7701871,925
FCF 3Y Avg1,807671,7323,6522,2551131,770
CFO LTM84122,6926,8974,8122,3202593,566
CFO 3Y Avg2,04711,6866,5604,4943,1002273,797

Growth & Margins

MCHPMUTXNADINXPIDIODMedian
NameMicrochi.Micron T.Texas In.Analog D.NXP Semi.Diodes  
Rev Chg LTM-23.4%45.4%9.9%16.9%-6.8%10.4%10.2%
Rev Chg 3Y Avg-14.9%28.3%-4.6%-1.4%-2.3%-8.8%-3.4%
Rev Chg Q-2.0%56.7%14.2%25.9%-2.4%12.0%13.1%
QoQ Delta Rev Chg LTM-0.6%13.2%3.5%6.1%-0.6%3.0%3.3%
Op Mgn LTM3.7%32.5%34.8%27.2%24.9%2.3%26.1%
Op Mgn 3Y Avg21.0%3.1%38.0%27.2%27.2%8.2%24.1%
QoQ Delta Op Mgn LTM-1.2%6.3%-0.1%1.9%-0.7%-0.7%-0.4%
CFO/Rev LTM20.0%53.6%39.9%43.7%19.3%18.1%30.0%
CFO/Rev 3Y Avg30.4%33.9%38.6%41.2%24.3%14.3%32.1%
FCF/Rev LTM17.9%11.0%12.0%38.8%14.7%13.1%13.9%
FCF/Rev 3Y Avg26.9%-6.0%10.2%33.6%17.7%7.1%13.9%

Valuation

MCHPMUTXNADINXPIDIODMedian
NameMicrochi.Micron T.Texas In.Analog D.NXP Semi.Diodes  
Mkt Cap35.8311.2162.5135.457.72.396.6
P/S8.57.49.412.34.81.67.9
P/EBIT754.622.226.144.718.928.027.1
P/E-193.226.132.259.728.036.530.1
P/CFO42.513.723.628.124.99.024.2
Total Yield1.5%4.0%6.1%3.1%5.4%2.7%3.5%
Dividend Yield2.1%0.2%3.0%1.4%1.8%0.0%1.6%
FCF Yield 3Y Avg4.4%-1.2%1.1%3.5%4.0%3.9%3.7%
D/E0.20.00.10.10.20.00.1
Net D/E0.10.00.10.00.1-0.10.0

Returns

MCHPMUTXNADINXPIDIODMedian
NameMicrochi.Micron T.Texas In.Analog D.NXP Semi.Diodes  
1M Rtn30.1%33.4%12.2%19.1%20.2%13.0%19.7%
3M Rtn2.2%68.1%0.4%11.9%1.9%-8.0%2.0%
6M Rtn-1.9%126.9%-9.8%20.3%10.1%-2.2%4.1%
12M Rtn23.1%208.2%-1.2%32.4%10.9%-17.9%17.0%
3Y Rtn1.9%460.0%19.1%77.3%53.6%-34.2%36.4%
1M Excs Rtn29.9%32.2%11.4%17.7%19.7%14.2%18.7%
3M Excs Rtn-0.0%63.0%-4.2%8.8%-1.4%-11.2%-0.7%
6M Excs Rtn-17.3%103.7%-24.6%5.4%-6.7%-16.7%-11.7%
12M Excs Rtn4.6%150.2%-17.3%17.8%-6.2%-36.3%-0.8%
3Y Excs Rtn-78.6%363.7%-61.4%-1.6%-29.9%-114.9%-45.6%

Financials

Segment Financials

Revenue by Segment
$ Mil20252024202320222021
Semiconductor products7,5318,2786,6995,3365,177
Technology licensing10316112210397
Total7,6348,4396,8215,4385,274


Price Behavior

Price Behavior
Market Price$66.24 
Market Cap ($ Bil)35.8 
First Trading Date03/19/1993 
Distance from 52W High-10.6% 
   50 Days200 Days
DMA Price$60.47$59.89
DMA Trendupdown
Distance from DMA9.5%10.6%
 3M1YR
Volatility46.6%59.1%
Downside Capture235.02167.22
Upside Capture216.80162.80
Correlation (SPY)56.7%71.8%
MCHP Betas & Captures as of 11/30/2025

 1M2M3M6M1Y3Y
Beta1.462.051.861.602.121.94
Up Beta0.871.972.181.722.512.14
Down Beta0.252.272.772.832.502.06
Up Capture42%106%54%66%143%414%
Bmk +ve Days12253873141426
Stock +ve Days7192859118368
Down Capture244%240%189%134%132%111%
Bmk -ve Days7162452107323
Stock -ve Days12223466130378

[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
 Comparison of MCHP With Other Asset Classes (Last 1Y)
 MCHPSector ETFEquityGoldCommoditiesReal EstateBitcoin
Annualized Return17.2%21.7%14.7%67.3%6.8%-0.5%-16.6%
Annualized Volatility58.9%27.8%19.7%19.3%15.2%17.6%35.4%
Sharpe Ratio0.480.690.572.540.23-0.18-0.25
Correlation With Other Assets 69.5%71.8%5.7%33.2%48.0%35.8%

ETFs used for asset classes: Sector ETF = XLK, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
 Comparison of MCHP With Other Asset Classes (Last 5Y)
 MCHPSector ETFEquityGoldCommoditiesReal EstateBitcoin
Annualized Return0.7%19.4%15.0%18.9%11.8%5.1%35.8%
Annualized Volatility43.6%24.7%17.1%15.5%18.7%18.9%48.9%
Sharpe Ratio0.160.710.710.980.510.180.63
Correlation With Other Assets 72.7%71.0%11.6%18.5%45.8%28.6%

ETFs used for asset classes: Sector ETF = XLK, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
 Comparison of MCHP With Other Asset Classes (Last 10Y)
 MCHPSector ETFEquityGoldCommoditiesReal EstateBitcoin
Annualized Return13.7%22.4%14.9%14.9%6.7%5.5%69.9%
Annualized Volatility41.0%24.2%18.0%14.8%17.6%20.8%55.8%
Sharpe Ratio0.450.850.710.840.300.230.90
Correlation With Other Assets 73.6%71.4%6.6%24.2%47.9%21.4%

ETFs used for asset classes: Sector ETF = XLK, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD
Smart multi-asset allocation framework can stack odds in your favor. Learn How

Short Interest

Short Interest: As Of Date11282025
Short Interest: Shares Quantity26,500,007
Short Interest: % Change Since 1115202510.2%
Average Daily Volume8,895,418
Days-to-Cover Short Interest2.98
Basic Shares Quantity540,000,000
Short % of Basic Shares4.9%

Earnings Returns History

Expand for More
 Forward Returns
Earnings Date1D Returns5D Returns21D Returns
11/6/2025-5.2%-7.6%13.7%
8/7/2025-6.6%-0.3%-0.7%
5/8/202512.6%23.7%39.6%
2/6/2025-2.3%2.2%1.4%
11/5/2024-1.8%-10.4%-21.9%
8/1/2024-10.6%-8.4%-2.1%
5/6/2024-1.8%-1.3%1.0%
2/1/2024-1.6%-1.5%2.0%
...
SUMMARY STATS   
# Positive131315
# Negative11119
Median Positive4.9%2.5%7.2%
Median Negative-2.3%-3.8%-5.4%
Max Positive12.6%24.3%39.6%
Max Negative-10.6%-10.4%-21.9%

SEC Filings

Expand for More
Report DateFiling DateFiling
93020251106202510-Q 9/30/2025
6302025807202510-Q 6/30/2025
3312025523202510-K 3/31/2025
12312024206202510-Q 12/31/2024
93020241105202410-Q 9/30/2024
6302024801202410-Q 6/30/2024
3312024523202410-K 3/31/2024
12312023201202410-Q 12/31/2023
93020231102202310-Q 9/30/2023
6302023803202310-Q 6/30/2023
3312023525202310-K 3/31/2023
12312022202202310-Q 12/31/2022
93020221103202210-Q 9/30/2022
6302022802202210-Q 6/30/2022
3312022520202210-K 3/31/2022
12312021203202210-Q 12/31/2021