As MCHP Falls 6.6% in a Day, NVDA’s Story Stands Out
NVIDIA (NVDA) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Microchip Technology (MCHP), suggesting you may be better off investing in NVDA
- NVDA’s quarterly revenue growth was 69.2%, vs. MCHP’s -26.8%.
- In addition, its Last 12 Months revenue 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%.
MCHP develops and sells semiconductor products and microcontrollers for embedded control in automotive, industrial, communications, lighting, power supplies, and motor control applications worldwide. NVDA provides graphics, compute, and networking solutions for gaming, visualization, datacenters, and automotive markets, with a strategic collaboration with Kroger Co.
Valuation & Performance Overview
| MCHP | NVDA | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 88.7 | 51.8 | 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 | -6.8% | 928.3% | 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
But do these numbers tell the full story? Read Buy or Sell NVDA Stock to see if NVIDIA’s edge holds up under the hood or if Microchip Technology still has cards to play (see Buy or Sell MCHP Stock).
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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% | 17% | 40% | ||
| NVDA Return | 122% | 125% | -50% | 239% | 171% | 35% | 2866% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 8% | 93% | ||
| Monthly Win Rates [3] | |||||||||
| MCHP Win Rate | 58% | 50% | 42% | 67% | 25% | 43% | 47% | ||
| NVDA Win Rate | 75% | 58% | 42% | 75% | 75% | 71% | 66% | <=== | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | ||
| 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
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read NVDA Dip Buyer Analyses and MCHP Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.