Microchip Technology Incorporated (MCHP) Stock

Microchip Technology Incorporated (MCHP) is a Technology stock trading at $74.26 (as of 2026-08-24), with a market capitalization of $40.32B and a trailing P/E of 127.8. 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 Technology develops, manufactures, and sells smart, connected, secure embedded control solutions, including microcontrollers and embedded microprocessors, plus development tools that help designers program these devices.

Microchip's profit model is driven by sales of its embedded control products (microcontrollers and embedded microprocessors) and related development tools, captured in its reported "Microchip Revenue" line.

Business quality (Mixed): Strong business description and operating KPI candidates are provided, but no clean, official segment breakdown is included in the supplied facts, so segment-level analysis cannot be reliably constructed.

Valuation: At 453× earnings, MCHP trades 784% above the Semiconductors average (51×). Note: one-time items can distort reported P/E.

Bull case

Broad embedded portfolio across many end uses: Microchip sells specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.
Healthy profitability in the provided financial snapshot: For 2025-12-31, gross margin is 59.6% and operating margin is 12.8%.
Development tools support the product design workflow: Microchip also provides development tools for system designers to program microcontroller and embedded designs, which can reinforce adoption of its embedded solutions.

Bear case

End-market sensitivity across multiple application areas: Because Microchip sells into a wide set of applications such as automotive, industrial, communications, and power-related uses, demand weakness in any of these end markets could reduce orders.
Results may be volatile around the revenue lines investors track: The most prominent operating KPI in the provided facts is "Microchip Revenue," alongside "GAAP Revenue"; changes in how revenue develops can materially affect the story investors focus on.

Valuation — source: SEC EDGAR (first-party)
Price	$74.26
Market Cap	$40.32B
P/E Ratio	127.8
EV / EBITDA	44.8
Price / Book	6.25
Price / Sales	8.25
FCF Yield	4.2%
DCF Value (model)	$26.56
DCF Upside vs Price	-64.2%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$4.71B
Net Margin	4.9%
Revenue Growth (YoY)	7.1%
EPS Growth (YoY)	-2300.0%
FCF Growth (YoY)	12.8%

Financial Health — source: SEC EDGAR
Altman Z-Score	4.07 (safe)
Piotroski F-Score	6/9 (moderate)

Valuation vs Sector & Industry
Stock P/E	127.8
Sector P/E (Technology)	33.9
Industry P/E (Electronic Equipment)	38.8
vs Sector	276.8%
vs Industry	229.6%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($4.68B)
Institutional Holders Tracked	10
Congressional Trades (recent)	10

Company
Sector	Technology
Industry	Electronic Equipment
CEO	Stephen Sanghi
Employees	22,300
Country	US
IPO Date	1993-03-19

Related Companies (Electronic Equipment; 8 comparable electronics makers)

Data as of 2026-08-24.

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