Microchip Technology Incorporated (MCHP) Stock

Microchip Technology Incorporated (MCHP) is a Technology stock trading at $71.49 (as of 2026-09-15), with a market capitalization of $38.82B and a trailing P/E of 81.1. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Microchip Technology develops, manufactures, and sells embedded control solutions, including general-purpose microcontrollers and embedded microprocessors, along with specialized microcontrollers for markets such as automotive and industrial. It also provides development tools, FPGA products, and analog, interface, mixed-signal, timing, and memory components for customers that design connected systems.

Understand Microchip Technology Incorporated: how it makes money

Microchip designs, makes, and sells embedded microcontrollers and processors for automotive, industrial, data-center, and consumer applications, monetizing them through chip sales and developer tools. The revenue mix is roughly half mixed-signal MCUs and half analog and other product lines, with Asia and the Americas as the top two markets.

Each microcontroller is designed into a customer's end product; once in, it generates revenue for the life of that product (often five to ten years), so growth is driven by design-win velocity and time-to-volume rather than by quarterly pricing power.

Business quality (Solid): Solid. A 63% gross margin on embedded IP signals a real switching-cost moat, and the 23% operating margin is respectable for a chip maker that manufactures through foundries. The design-in model makes revenue durable but inherently lags new wins.

Valuation: At 128× earnings, MCHP trades 230% above the Semiconductors average (39×).

Bull case

  • Data-center breakout is real: Data-center sales grew 97.8% year over year in the June quarter, turning what was a rounding error into the fastest-growing end market in the portfolio and validating the shift toward higher-mix compute applications.
  • Aero and defense tailwind: Management describes aerospace and defense demand as a multiyear buildup, meaning program content is being pulled forward ahead of production ramps, which should sustain revenue even if industrial demand normalizes.
  • Halo extends edge-AI moat: The Halo acquisition advances Microchip's edge-AI roadmaps by approximately five years, buying the company a proprietary software and compute advantage that incumbent MCU rivals would need to match from scratch.

Bear case

  • Supply constraints are widening: Foundry, substrate, subcontractor, and test constraints are now spreading across product lines, meaning the company cannot simply shift wafer capacity to its highest-margin parts when demand spikes hit.
  • Design wins lag revenue: Fourteen data-center design wins have not yet shipped any products, so the 97.8% growth figure, while exciting, is still small in absolute terms and the real revenue inflection depends on customer volume-production timelines outside Microchip's control.
  • Valuation prices in perfection: The stock trades at a P/E of 127.8x versus a 39x industry average, a 230% premium (receipt: valuation). Even with strong 38% revenue growth, that multiple leaves little room for any supply or timing miss without multiple compression.
Valuation — source: SEC EDGAR (first-party)
Price$71.49
Market Cap$38.82B
P/E Ratio81.1
EV / EBITDA29.6
Price / Book6.02
Price / Sales7.58
Dividend Yield2.5%
FCF Yield2.9%
DCF Value (model)$26.56
DCF Upside vs Price-62.8%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$4.71B
Net Margin4.9%
Return on Equity7.4%
Debt / Equity0.83
Current Ratio1.92
Revenue Growth (YoY)38.0%
EPS Growth (YoY)-511.1%
FCF Growth (YoY)93.1%
Financial Health — source: SEC EDGAR
Altman Z-Score3.95 (safe)
Piotroski F-Score6/9 (moderate)
Valuation vs Sector & Industry
Stock P/E81.1
Sector P/E (Technology)30.8
Industry P/E (Electronic Equipment)36.7
vs Sector163.2%
vs Industry120.9%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($5.80B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorTechnology
IndustryElectronic Equipment
CEOStephen Sanghi
Employees22,300
CountryUS
IPO Date1993-03-19

Microchip Technology Incorporated earnings call transcripts

  • MCHP Q1 FY27 earnings call transcript (reported 2026-08-06) · analysis
  • MCHP Q4 FY26 earnings call transcript (reported 2026-05-07) · analysis
  • MCHP Q3 FY26 earnings call transcript (reported 2026-02-05) · analysis

All MCHP earnings calls

Related Companies (Electronic Equipment; 8 comparable electronics makers)

  • MACOM Technology Solutions Holdings, Inc. (MTSI)
  • Skyworks Solutions, Inc. (SWKS)
  • ON Semiconductor Corporation (ON)
  • Qorvo, Inc. (QRVO)
  • Amkor Technology, Inc. (AMKR)
  • Analog Devices, Inc. (ADI)
  • GlobalFoundries Inc. (GFS)
  • Texas Instruments Incorporated (TXN)
MCHP earnings history · MCHP institutional & insider holders · MCHP KPIs & operating metrics · MCHP financials · MCHP filings, presentations & press releases · MCHP investor presentations & press releases · MCHP SEC filings · MCHP peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-15.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.