Which Stock Will Rally: NVIDIA or Microchip Technology?
Even as Microchip Technology fell -5.2% during the past Day, its peer NVIDIA may be a better choice. Consistently evaluating alternatives is core to sound investment approach. NVIDIA (NVDA) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Microchip Technology (MCHP) stock, suggesting you may be better off investing in NVDA
- NVDA’s quarterly revenue growth was 55.6%, vs. MCHP’s -2.0%.
- In addition, its Last 12 Months revenue growth came in at 71.6%, ahead of MCHP’s -23.4%.
- NVDA leads on profitability over both periods – LTM margin of 58.1% and 3-year average of 51.0%.
A single stock can be risky, but there is a huge value to a broader, diversified approach. Should you buy one stock you like or build a portfolio designed to win across cycles? Our numbers show that the Trefis High Quality Portfolio has turned stock-picking uncertainty into market-beating consistency. This portfolio is incorporated in the asset allocation strategy of Empirical Asset Management — a Boston area wealth manager and Trefis partner — whose asset allocation framework yielded positive returns during the 2008-09 period when the S&P lost more than 40%.
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 | 195.8 | 47.8 | NVDA |
| Revenue Growth | |||
| Last Quarter | -2.0% | 55.6% | NVDA |
| Last 12 Months | -23.4% | 71.6% | NVDA |
| Last 3 Year Average | -14.9% | 92.0% | NVDA |
| Operating Margins | |||
| Last 12 Months | 3.7% | 58.1% | NVDA |
| Last 3 Year Average | 21.0% | 51.0% | NVDA |
| Momentum | |||
| Last 3 Year Return | -8.0% | 1217.2% | 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).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| MCHP Return | 34% | 27% | -18% | 31% | -35% | 6% | 26% | ||
| NVDA Return | 122% | 125% | -50% | 239% | 171% | 40% | 3111% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 108% | ||
| Monthly Win Rates [3] | |||||||||
| MCHP Win Rate | 58% | 50% | 42% | 67% | 25% | 30% | 45% | ||
| NVDA Win Rate | 75% | 58% | 42% | 75% | 75% | 70% | 66% | <=== | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | ||
| 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 up to 11/7/2025 (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.
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.