Microchip beat its own forecast, yet the stock still got hammered. The CEO says AI buyers swept through supplier factories and shoved everyone else aside, and one fix could take six months.

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.
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 11/7/2026, 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) |
|---|---|---|
Q4 2026Latest Nov 5, 2026 | $0.97+3.6% vs $0.94 | $1.6B+0.8% vs $1.6B |
Q3 2026 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 |
Microchip beat its own forecast, yet the stock still got hammered. The CEO says AI buyers swept through supplier factories and shoved everyone else aside, and one fix could take six months.

Microchip's Q2 fiscal 2027 earnings beat estimates as revenues surge 42.2%, fueled by industrial and data center demand recovery and expanding margins.

Microchip's Q2 earnings beat estimates as industrial and data center demand surged, but supply constraints and rising costs threaten near-term growth.

On one of the worst days for AI stocks in years, a veteran chip executive said out loud what many investors fear. Here's who has the most to lose if he's right.
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 |
|---|---|---|---|---|---|---|---|
| $58.35 | $31.68B | 224.42 | 7.08% | 4.29% | 2.99% | 3.08% | |
| $277.36 | $253.3B | 50.89 | 13.05% | 34.25% | 40.51% | 1.97% | |
| $363.56 | $177.09B | 79.73 | 16.89% | 29.79% | 12.26% | 1.07% | |
| $248.29 | $62.61B | 31.23 | -2.74% | 23.5% | 28.23% | 1.62% | |
| $63.31 | $24.64B | 218.31 | -15.35% | 10.82% | 9.24% | — | |
| $82.19 | $12.37B | 26.69 | -2.18% | 7.23% | 5.04% | 3.39% |
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 over the trailing twelve months. Revenue was $4.71B in fiscal year 2026. That is 1310% more than the $334.3M of fiscal year 1997.
Microchip Technology Incorporated (MCHP) grew revenue by 7.1% in fiscal year 2026, compared with the prior fiscal year.
Yes. Microchip Technology Incorporated (MCHP) earned $450.6M in net income over the trailing twelve months (a 8.8% net margin).
Yes. Microchip Technology Incorporated (MCHP) pays a dividend that yields 3.08% at the current price, a moderate yield.
Microchip Technology Incorporated (MCHP) had a return on equity (ROE) of 3.0% in fiscal year 2026. That is below the market's typical 10-15%.
Microchip Technology Incorporated (MCHP) generated $1.11B in free cash flow over the trailing twelve months.