Company Overview

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions 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 and microprocessor 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 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.

  • Name

    Microchip Technology Incorporated

  • CEO

    Stephen Sanghi

  • Website

    www.microchip.com

  • Sector

    Semiconductors and Semiconductor Equipment

  • Year Founded

    1989

Company Statistics

Profile

  • Market Cap

  • EV

  • Shares Out

  • Revenue

  • Employees

Margins

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  • EBITDA

  • Operating

  • Pre-Tax

  • Net

  • FCF

Returns (5Yr Avg)

  • ROA

  • ROTA

  • ROE

  • ROCE

  • ROIC

Valuation (TTM)

  • P/E

  • P/B

  • EV/Sales

  • EV/EBITDA

  • P/FCF

  • EV/Gross Profit

Valuation (NTM)

  • Price Target

  • P/E

  • PEG

  • EV/Sales

  • EV/EBITDA

  • P/FCF

Financial Health

  • Cash

  • Net Debt

  • Debt/Equity

  • EBIT/Interest

Growth (CAGR)

  • Rev 3Yr

  • Rev 5Yr

  • Rev 10Yr

  • Dil EPS 3Yr

  • Dil EPS 5Yr

  • Dil EPS 10Yr

  • Rev Fwd 2Yr

  • EBITDA Fwd 2Yr

  • EPS Fwd 2Yr

  • EPS LT Growth Est

Dividends

  • Yield

  • Payout

  • DPS

  • DPS Growth 3Yr

  • DPS Growth 5Yr

  • DPS Growth 10Yr

  • DPS Growth Fwd 2Yr

Bulls Say

  • Microchip sells to tens of thousands of end customers, so it is not overly dependent on sales to any one client or market segment.

  • Microchip is well-positioned to take advantage of increasing processing power and rising chip content in a host of devices, such as automotive and industrial equipment.

  • Microchip has typically done a good job of bracing itself during downturns, including pay cuts and shutdowns, to maintain healthy profitability.

Bears Say

  • The Chinese government is striving to build out an ecosystem of chipmakers, and it’s likely that some Chinese upstarts will emerge as competitors to Microchip in the years ahead.

  • Microchip is the market share leader in 8-bit MCUs but trails a couple of other firms in 16- and 32-bit MCUs, as well as analog semis.

  • Microchip has done an exceptional job of integrating M&A targets in recent years but has leveraged up the balance sheet to do so.

Source: Morningstar Analysis - Nov 07, 2025

What's happening

Nov 6, 2025 - Dec 6, 2025

Microchip Technology Inc. Surges with Strong Financial Updates and Strategic Innovations

  • Microchip Technology Inc. raised its guidance for the upcoming quarter, indicating improved inventory management and demand in key sectors.
  • The company introduced innovative power monitors aimed at enhancing energy efficiency in portable devices, contributing to a positive market outlook.
  • Despite earlier bearish sentiment due to mixed earnings results, MCHP's stock rebounded significantly following favorable analyst ratings.

Over the past month, Microchip Technology Inc. (MCHP) demonstrated strong stock performance by rising 8.2%. This increase notably outperformed the S&P 500's return of 1.2%, reflecting a relative overperformance of 7% against this benchmark index. Key drivers behind MCHP's success included positive financial updates and strategic initiatives that enhanced investor confidence.

On December 3, MCHP raised its guidance for net sales in the upcoming quarter to the upper end of previous estimates, signaling better conditions in inventory management and increased demand across industrial and automotive sectors. The company reported robust bookings activity leading to an adjusted earnings per share (EPS) forecast that surpassed analyst expectations. Additionally, MCHP launched new power monitors designed to improve energy efficiency in portable devices.

The momentum continued into early December as significant price increases followed these announcements; on December 4 alone, MCHP experienced a rise of approximately 12% after already climbing by 6% the day prior. Analysts responded positively; Needham maintained a "Buy" rating while raising their price target for MCHP to $75 based on this favorable trajectory.

Despite some bearish sentiment earlier in November when analysts lowered their price targets due to mixed Q2 FY2026 earnings results—where revenue slightly exceeded expectations but reflected year-over-year declines—MCHP managed to position itself favorably within the semiconductor industry amidst broader market fluctuations. Its commitment to innovation through partnerships like licensing Ceva’s NeuPro technology highlights its focus on enhancing product offerings across various sectors including AI applications.

Microchip Technology Inc outperformed the Information Technology (XLK) sector by an impressive margin of 58.6%.

NasdaqGS:MCHP