Microchip Technology Incorporated
- Open
- 71.70
- Day high
- 73.29
- Day low
- 70.85
- Prev close
- 72.76
- Volume
- 5.6M
- Mkt cap
- $39.7B
- P/E (TTM)
- 101.3
- EPS (TTM)
- $0.72
- P/B
- 6.2
- P/S
- 7.8
- Yield
- 2.49%
- Per share
- $1.82
- ▼Insiders net selling -$864K over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions accumulating (13F)
Microchip Technology Incorporated (MCHP) is a Technology company listed on NASDAQ. The stock is up 13% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4). Drillr has 2 published research articles covering MCHP.
Microchip Technology Incorporated (MCHP) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MCHP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $0.70 | $0.76 | +8.6% | $1.5B | +1.8% |
| May 7, 2026 | $0.51 | $0.57 | +12.9% | $1.3B | +3.8% |
| Feb 5, 2026 | $0.43 | $0.44 | +2.7% | $1.2B | +0.2% |
| Nov 6, 2025 | $0.33 | $0.35 | +5.9% | $1.1B | +0.7% |
| Aug 7, 2025 | $0.24 | $0.27 | +13.0% | $1.1B | +1.7% |
| May 8, 2025 | $0.10 | $0.11 | +5.1% | $971M | +0.8% |
| Feb 6, 2025 | $0.28 | $0.20 | -27.9% | $1.0B | -1.9% |
| Aug 1, 2024 | $0.52 | $0.53 | +1.7% | $1.2B | -0.0% |
| Feb 1, 2024 | $1.04 | $1.08 | +3.8% | $1.8B | -0.4% |
| Nov 2, 2023 | $1.62 | $1.62 | +0.0% | $2.3B | -0.5% |
| Aug 3, 2023 | $1.64 | $1.64 | +0.0% | $2.3B | -0.1% |
| May 4, 2023 | $1.62 | $1.64 | +1.2% | $2.2B | +0.3% |
MCHP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Sep 2, 2026 | Krawczyk Joseph R IIofficer: SR. CORP VP, WW CLIENT ENGMT | Grant | 41 | $60.70 |
| Sep 2, 2026 | Bunker Mathew Bofficer: SR CORPORATE VP, OPERATIONS | Grant | 53 | $60.70 |
| Sep 2, 2026 | Duvenhage Stephanusofficer: Sr. Corp VP, Analog Bus Unit | Grant | 123 | $60.70 |
| Aug 26, 2026 | Bjornholt James Ericofficer: SENIOR CORPORATE VP AND CFO | Sell | 4,112 | $75.32 |
| Aug 26, 2026 | Bjornholt James Ericofficer: SENIOR CORPORATE VP AND CFO | Tax | 837 | $80.26 |
| Aug 19, 2026 | Bunker Mathew Bofficer: SR CORPORATE VP, OPERATIONS | Option | 870 | $80.26 |
| Aug 19, 2026 | LITTLE MITCHELL Rdirector | Grant | 2,557 | — |
| Aug 19, 2026 | Simoncic Richard Jofficer: CHIEF OPERATING OFFICER | Tax | 114 | $80.26 |
| Aug 19, 2026 | Krawczyk Joseph R IIofficer: SR. CORP VP, WW CLIENT ENGMT | Tax | 325 | $80.26 |
| Aug 19, 2026 | Simoncic Richard Jofficer: CHIEF OPERATING OFFICER | Tax | 518 | $80.26 |
| Aug 19, 2026 | Bunker Mathew Bofficer: SR CORPORATE VP, OPERATIONS | Tax | 243 | $80.26 |
| Aug 19, 2026 | Simoncic Richard Jofficer: CHIEF OPERATING OFFICER | Option | 269 | $80.26 |
| Aug 19, 2026 | Bjornholt James Ericofficer: SENIOR CORPORATE VP AND CFO | Tax | 581 | $80.26 |
| Aug 19, 2026 | Krawczyk Joseph R IIofficer: SR. CORP VP, WW CLIENT ENGMT | Tax | 146 | $80.26 |
| Aug 19, 2026 | Krawczyk Joseph R IIofficer: SR. CORP VP, WW CLIENT ENGMT | Option | 340 | $80.26 |
Source: MCHP SEC Form 4 filings, latest Sep 2, 2026. For informational purposes only — not investment advice.
See the full MCHP insider & 13F page →MCHP research & analysis
[MCHP] Microchip Thesis 2026: Industrial Inventory Reset Tests Microcontroller Cycle Recovery
Microchip Technology Inc. FY2025 revenue ~$4.4-4.6B (-30 to -25%) with adj. EPS ~$1.85-2.10 reflecting continued severe post-2023 industrial inventory destock (selected ~$2-3B revenue impact peak FY2024-2025; selected ~50% peak-to-trough revenue decline) + selected automotive cycle pressure + selected post-2018 Microsemi $8.4B acquisition synergies + selected operational excellence under continued CEO Steve Sanghi (returned as CEO November 2024 succeeded Ganesh Moorthy who unexpectedly departed). Leading global microcontroller (MCU) + analog + mixed-signal semiconductor firm; founded 1989 by Steve Sanghi + selected co-founders in Chandler Arizona (originally as microcontroller/EEPROM semiconductor firm; spin-off from General Instrument; IPO 1993 ~$60M raised; ~36+ year heritage); headquartered in Chandler Arizona; ~21,000+ employees globally with ~$4.4-4.6B revenue; fiscal year ends ~March. Severe industrial inventory destock: revenue declined from selected ~$8.4B FY2023 peak to ~$4.4-4.6B FY2025 (selected ~$3-4B peak-to-trough decline; ~50% peak-to-trough decline; one of most severe industrial semiconductor downturns in cycle); selected post-pandemic industrial inventory pull-forward unwinding; selected automotive cycle weakness; selected expected post-2025 cycle bottom + selected continued recovery. End-market mix: Industrial ~40% (selected factory automation + selected IoT + selected medical) + Automotive ~25% (selected EV + ADAS + selected powertrain) + Computing/Datacenter ~15% (selected post-Microsemi enterprise + datacenter) + Consumer ~10% + Aerospace/Defense ~7% (selected post-Microsemi) + Communications ~3%. Product mix: Microcontrollers ~50% + Analog ~20% + FPGA + selected ~15% (post-Microsemi) + Memory + selected ~10% + Other ~5%. Geographic mix: Asia-Pacific ~50% + Americas ~30% + EMEA ~20%. CEO Steve Sanghi returned to CEO role November 1, 2024 (succeeded Ganesh Moorthy CEO 2021-November 2024 who unexpectedly departed; Moorthy had originally succeeded Sanghi 2021); Sanghi originally CEO 1991-2021 (~30-year tenure as founder + CEO); ex-Intel + ex-Microchip co-founder/CEO 1991-2021 + ~40+ year semiconductor executive career; Indian-American; Punjab Engineering College + MS engineering Ohio State. Capital return: dividend $1.82-1.84/share annual (~22 consecutive year increases approaching Dividend Aristocrat 25; selected ~3-4% yield in current weak environment) + buybacks $0-0.5B (selected modest post-2024 weakness); investment-grade Baa1/BBB+ credit rating; net debt $5-6B (selected post-Microsemi deleveraging). FY2026 thesis: industrial cycle recovery + Microsemi synergies + Sanghi turnaround + capital return. Risks: industrial cycle severity, Sanghi succession (~73 years old), Microsemi tail risk, customer concentration, tariff exposure.
Can Texas Instruments' $5.2B Guidance Lift Analog Peers Trading at 2023 Trough Multiples?
Texas Instruments' Q2 guidance of $5.2B (11% above consensus) confirms industrial demand recovery, but Analog Devices and ON Semiconductor trade at 18-19x forward—400-500bp below TXN—despite identical end-market exposure. Long ADI and ON over 90 days targets 5-8% outperformance as Q2 results validate the turn.
TXNADION
Microchip Technology Incorporated company profile
Overview
Microchip Technology Incorporated (NASDAQ:MCHP) is a leading semiconductor company founded in 1989 and headquartered in Chandler, Arizona. The company went public in 1993 and has established itself as a major player in the embedded control solutions market. Microchip designs, manufactures, and sells microcontrollers, analog semiconductors, and field-programmable gate arrays (FPGAs) that serve as the "brains" of electronic devices across industries ranging from automotive to aerospace. The company has grown through strategic acquisitions and organic innovation, building a comprehensive portfolio of embedded control technologies that enable smart, connected, and secure electronic systems.
Business
Microchip Technology operates in the semiconductor industry, specifically focusing on embedded control solutions - the specialized computer chips that control the functions of electronic devices. The company's products can be thought of as the "brains" that make everyday devices smart and responsive, from the microcontroller in a car's engine management system to the chips that control industrial machinery. The company operates through three main business segments: 1. Mixed-Signal Microcontrollers (approximately 56% of revenue): These are specialized computer processors designed for specific control tasks. Microchip offers 8-bit, 16-bit, and 32-bit microcontrollers that serve as the central processing units for embedded systems. These chips are programmed to control everything from simple appliances to complex automotive systems. The company also produces embedded microprocessors for more demanding applications requiring higher performance. 2. Analog and Interface Products (approximately 26-28% of revenue): This segment includes power management chips, signal processing components, and interface products that help different parts of electronic systems communicate with each other. These products handle tasks like converting power to the right voltage levels, managing heat, and enabling connectivity through USB, Ethernet, and wireless protocols. 3. Field-Programmable Gate Arrays (FPGAs) (approximately 15-17% of revenue): FPGAs are highly flexible semiconductor devices that can be programmed and reprogrammed to perform specific functions. Unlike fixed-function chips, FPGAs can be customized by customers for their particular applications, making them valuable for specialized or low-volume applications in aerospace, defense, and industrial markets. The company also provides development tools, software, and engineering services to help customers design and implement their electronic systems, as well as manufacturing services including wafer fabrication, assembly, and testing.
Revenue model
Microchip generates revenue primarily through product sales to original equipment manufacturers (OEMs), distributors, and contract manufacturers. The company's business model is built on several key revenue streams: Product Sales constitute the vast majority of revenue, with customers purchasing microcontrollers, analog chips, and FPGAs for integration into their electronic products. The company benefits from design-in cycles, where once a customer selects Microchip's chip for a product design, that chip typically remains in the product for its entire lifecycle, often spanning several years. This creates recurring revenue streams as customers place repeat orders for production. Development Tools and Software provide additional revenue through sales of programming tools, compilers, and development boards that customers need to work with Microchip's chips. The company also offers engineering services and manufacturing services including wafer foundry, assembly, and testing for other companies. Licensing Revenue comes from licensing the company's SuperFlash embedded flash memory technology to foundries and other semiconductor manufacturers. Factors that increase margins include: higher factory utilization rates (the company targets 85% incremental margins when utilization improves), successful new product introductions with higher value propositions, and the sticky nature of design-in relationships that reduce pricing pressure. The company's focus on specialized, trailing-edge technologies in niche applications also supports margin stability. Factors that decrease margins include: semiconductor industry downturns that reduce demand and factory utilization, inventory corrections that force production cuts, competitive pricing pressure in commodity segments, and macroeconomic weakness in key end markets like automotive and industrial applications. The company's margins are also sensitive to the geographic mix of sales, with some regions showing higher profitability than others.
Competitive moat
Microchip's competitive moat is moderately strong but not insurmountable, built primarily on customer switching costs and specialized expertise rather than technological barriers. The company's primary moat comes from design-in cycles - once engineers design a Microchip product into their system, switching to a competitor requires significant time, cost, and risk. This creates multi-year revenue visibility for each design win, as customers typically continue purchasing the same chip throughout a product's lifecycle. The company's comprehensive ecosystem of development tools, software, and technical support creates additional switching costs. Engineers invest considerable time learning Microchip's development environment, making them reluctant to switch to competitors. The company's focus on total system solutions rather than individual components also increases customer dependence. However, this moat has limitations. The semiconductor industry is highly competitive with well-funded rivals like Texas Instruments, STMicroelectronics, and Infineon offering similar products. Technological differentiation is limited since Microchip focuses on mature, trailing-edge technologies rather than cutting-edge innovation. New competitors, particularly from Asia, continue to enter the market with cost-competitive offerings. The company faces potential disruption from several sources: the industry's gradual shift toward more integrated system-on-chip solutions that could reduce demand for discrete components; the rise of RISC-V open-source processor architectures that could commoditize microcontroller designs; and the increasing capability of customers' internal design teams, which could reduce dependence on Microchip's development tools and support services. Additionally, major customers developing their own chips (like automotive OEMs) could reduce the addressable market for third-party semiconductors.
Risks & safety
Microchip's margin of safety appears moderate to weak given current financial metrics and market conditions. • Liquidity and Solvency: Current ratio of 2.25 provides adequate short-term liquidity. However, debt-to-equity ratio of 1.12 indicates significant leverage. Free cash flow of $253 million in recent quarter shows positive cash generation, but this is down substantially from historical levels of $2.6+ billion annually. • Valuation Metrics: EV/EBITDA of 44x appears extremely elevated, suggesting significant overvaluation. Price-to-book ratio of 5.1x is high for a cyclical semiconductor company. The company recently reported negative net income despite positive EBITDA, indicating operational stress. • Other Considerations: The company is experiencing a significant cyclical downturn with revenues down 42% year-over-year. Management has implemented cost-cutting measures including facility closures and workforce reductions. Inventory levels remain elevated at 251 days despite reduction efforts. The company maintains its dividend commitment, but this could strain cash flow if the downturn persists.
Recent development
Over the past few years, Microchip has undergone significant strategic evolution driven by both market opportunities and cyclical challenges. The company has shifted its strategic focus from 5G infrastructure to artificial intelligence applications, recognizing AI as a more promising growth driver. This pivot includes developing AI-enhanced development tools and targeting AI edge computing applications. Product Portfolio Expansion has been a major theme, with the company entering the 64-bit embedded microprocessor market to expand its total addressable market from $3-4 billion to $6 billion. The company has also strengthened its FPGA offerings, with this segment showing strong growth exceeding 22% annually and generating over $679 million in revenue. Strategic Acquisitions have enhanced capabilities in key growth areas, including the acquisition of VSI for automotive networking solutions and Neuronix AI Labs to bolster AI edge computing capabilities. These acquisitions support the company's evolution toward more comprehensive system solutions. In response to the current industry downturn, management has implemented a comprehensive nine-point recovery plan including closing the Tempe fabrication facility, reducing inventory from 266 days to a target of 130-150 days, reorganizing business units, and modifying channel strategies to incentivize new product designs. The company has also completed a global workforce reduction of approximately 10% while maintaining its commitment to returning 100% of adjusted free cash flow to shareholders through dividends and share repurchases. Technology Innovation continues with new product introductions including RISC-V processors with AI capabilities, expanded Wi-Fi portfolios, and space-certified FPGA solutions for aerospace applications. The company has also developed AI-powered development tools to improve customer productivity and ease of design-in.
MCHP company profile · for informational purposes only — not investment advice.
Track MCHP with Drillr
SEC filings, earnings calls, insider activity, alt-data signals — all queryable through Drillr's AI terminal and MCP API.
Try Drillr for free