Microchip Technology Incorporated
- Open
- 89.05
- Day high
- 92.01
- Day low
- 88.02
- Prev close
- 89.06
- Volume
- 14.3M
- Mkt cap
- $49.3B
- P/E (TTM)
- 343.1
- EPS (TTM)
- $0.27
- P/B
- 7.7
- P/S
- 10.5
- Yield
- 2.00%
- Per share
- $1.82
- ▼Insiders net selling -$51.7M over the last 3 months (0 open-market buys, 12 sales)
- 🏛Institutions mixed (13F)
Microchip Technology Incorporated (MCHP) is a Technology company listed on NASDAQ. The stock is up 27% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 12 sales (SEC Form 4). Drillr has 1 published research article covering MCHP.
Microchip Technology Incorporated (MCHP) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 11 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 |
|---|---|---|---|---|---|
| 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% |
| Feb 2, 2023 | $1.55 | $1.56 | +0.6% | $2.2B | +0.6% |
MCHP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 8, 2026 | Simoncic Richard Jofficer: CHIEF OPERATING OFFICER | Sell | 5,000 | $97.52 |
| May 29, 2026 | CHAPMAN MATTHEW Wdirector | Sell | 3,000 | $97.52 |
| May 26, 2026 | Simoncic Richard Jofficer: CHIEF OPERATING OFFICER | Sell | 5,000 | $93.44 |
| May 26, 2026 | Bjornholt James Ericofficer: SENIOR VP AND CFO | Sell | 3,333 | $90.64 |
| May 26, 2026 | Bjornholt James Ericofficer: SENIOR VP AND CFO | Sell | 334 | $93.11 |
| May 21, 2026 | CHAPMAN MATTHEW Wdirector | Sell | 10,000 | $95.48 |
| May 19, 2026 | Bjornholt James Ericofficer: SENIOR VP AND CFO | Option | 1,355 | $93.85 |
| May 19, 2026 | Simoncic Richard Jofficer: CHIEF OPERATING OFFICER | Tax | 335 | $93.85 |
| May 19, 2026 | Simoncic Richard Jofficer: CHIEF OPERATING OFFICER | Tax | 463 | $93.85 |
| May 19, 2026 | Bjornholt James Ericofficer: SENIOR VP AND CFO | Tax | 725 | $93.85 |
| May 19, 2026 | Simoncic Richard Jofficer: CHIEF OPERATING OFFICER | Option | 1,690 | $93.85 |
| May 19, 2026 | Bjornholt James Ericofficer: SENIOR VP AND CFO | Tax | 581 | $93.85 |
| May 19, 2026 | Bunker Mathew Bofficer: SENIOR VP, OPERATIONS | Option | 353 | $93.85 |
| May 19, 2026 | Sanghi Stevedirector, officer: President, CEO and Chair of Bd | Option | 6,356 | $93.85 |
| May 19, 2026 | Bunker Mathew Bofficer: SENIOR VP, OPERATIONS | Option | 870 | $93.85 |
Source: MCHP SEC Form 4 filings, latest Jun 8, 2026. For informational purposes only — not investment advice.
See the full MCHP insider & 13F page →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.
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