Zacks Investment Research·21h ago
Microchip Rises 17% YTD: Should You Buy, Sell or Hold the Stock?MCHP gains 17% YTD as demand, inventory normalization and data-center growth improve, but supply, debt and valuation risks remain.
Microchip Technology is executing a powerful cyclical recovery, with revenue surging 38% year-over-year to $1.485B in 2027Q1 and gross margin expanding from 51.6% to 63.2% since the 2025Q4 trough, demonstrating significant operating leverage. The company's fre...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 38% year-over-year in 2027Q1, with gross margin expanding to 63.2% and operating margin reaching 22.7%, a dramatic turnaround from the -10.3% operating margin in 2025Q4.
Microchip Technology is a leading provider of microcontroller solutions, which are essential components in various embedded systems and applications.
The company's fab-lite model allows for cost efficiency and flexibility in semiconductor manufacturing, contributing to strong free cash flow.
Microchip generates robust free cash flow, supporting its financial stability and potential for shareholder returns.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 6, 2026 | $0.76+8.6% vs $0.70 | $1.5B+1.8% vs $1.5B |
Q2 2026 May 7, 2026 | $0.57+12.9% vs $0.51 | $1.3B+3.8% vs $1.3B |
Q1 2026 Feb 5, 2026 | $0.44+2.7% vs $0.43 | $1.2B+0.2% vs $1.2B |
Q4 2025 Nov 6, 2025 | $0.35+5.9% vs $0.33 | $1.1B+0.7% vs $1.1B |
MCHP gains 17% YTD as demand, inventory normalization and data-center growth improve, but supply, debt and valuation risks remain.
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CHANDLER, Ariz., Sept. 21, 2026 (GLOBE NEWSWIRE) -- Microchip Technology Incorporated (Nasdaq: MCHP), a broadline supplier of semiconductors committed to making innovative design easier through total system solutions, today announced that it has completed its acquisition of Hailo, a provider of accelerated edge AI processors, vision processors, robotics processors and AI software technologies.
Microchip Technology expands its edge-AI push as AnalogAI adopts SST's memBrain SAGE IP for ultra-low-power processors in robots, drones and vehicles.
Benchmark MCHP against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Microchip Technology Incorporated (MCHP)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $75.82 | $41.17B | 291.62 | 7.08% | 4.29% | 2.99% | 2.37% | |
| $271.41 | $247.86B | 49.80 | 13.05% | 31.11% | 35.77% | — | |
| $390.37 | $190.14B | 85.61 | 16.89% | 29.79% | 12.26% | — | |
| $237.57 | $59.91B | 29.88 | -2.74% | 22.56% | 27.1% | — | |
| $73.60 | $28.64B | 253.79 | -15.35% | 10.17% | 8.35% | — | |
| $89.96 | $13.54B | 29.21 | -2.18% | 7.23% | 5.04% | — |
Microchip Technology Incorporated (MCHP) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Microchip Technology Incorporated (MCHP) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 6, 2026·SEC
Jul 24, 2026·SEC
Jun 1, 2026·SEC
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Microchip Technology Incorporated (MCHP) stock FAQ — growth, dividends, profitability & financials explained
Microchip Technology Incorporated (MCHP) reported $5.12B in revenue for fiscal year 2026. This represents a 1432% increase from $334.3M in 1997.
Microchip Technology Incorporated (MCHP) grew revenue by 7.1% over the past year. This is steady growth.
Yes, Microchip Technology Incorporated (MCHP) is profitable, generating $450.6M in net income for fiscal year 2026 (4.3% net margin).
Yes, Microchip Technology Incorporated (MCHP) pays a dividend with a yield of 2.37%. This makes it attractive for income-focused investors.
Microchip Technology Incorporated (MCHP) has a return on equity (ROE) of 3.0%. This is below average, suggesting room for improvement.
Microchip Technology Incorporated (MCHP) generated $1.11B in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
