MCHP
Microchip Technology Incorporated

Microchip Technology IncorporatedMCHP

Technology · Semiconductors
75.82USD
+1.39%
Sep 23, 2026
MCHP overview ready
Embedded-Control Semiconductor Supplier Driving Automotive and Industrial Restocking
Microchip is a broad embedded-control semiconductor supplier whose MCU, MPU, analog, power-management, timing, connectivity, security and FPGA products are designed into automotive, industrial, communications and other long-lived equipment.
Narrative not measured
Industrial and Automotive Semiconductor RecoveryEmbedded Control Semiconductor Restocking and Utilization RecoveryComponent supplier
No clear price read
Longer-term context reads early trend, with a near-term setup of base repair.
Demanding valuation
The price embeds expectations that run ahead of what comparable businesses command.
Fundamentals under pressure
Ev / ebitda is weak.
Primary risk
Cyclicality in semiconductor demand impacting revenue stability.
Market Sep 22Filing Jun 30Price action Sep 22Research Aug 11

Conviction Level

NarrativeHeatThemeHeat7.6PriceAction5.4Valuation2.2CompanyPosition7.3
Price
Loading price history…

Price Action

No clear price read
Longer-term context reads early trend, with a near-term setup of base repair.
EntryConstructive

Structure is constructive on both timeframes without excessive extension — a reasonable entry location.

Key Financials

Market Cap
$41.2B
Avg Volume (60D)
9.6M
60 sessions
Revenue Growth YoY
+7.1%
FY2026 vs FY2025
Gross Margin
+60.2%
Trailing twelve months
Operating Margin
+15.5%
Trailing twelve months
Free Cash Flow Yield
+2.7%
Distance from 200DMA
-2.4%
Next Earnings
2026-11-05
P/E
86.1x
EV / EBITDA
31.5x
EV / Sales
9.0x
Market metrics as of Sep 22, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

One of the two valuation perspectives says expensive; peers is the dissenting view.
Microchip Technology Incorporated has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command.

What changed

  • NVDA, a AI Semiconductors and Advanced Packaging peer of MCHP, had a material event
    Dated 2026-08-28.
    2026-08-28

Company Research

Thesis
Microchip is a broad embedded-control semiconductor supplier whose MCU, MPU, analog, power-management, timing, connectivity, security and FPGA products are designed into automotive, industrial, communications and other long-lived equipment.
Opportunity
Moderate opportunity
A recovery in automotive and industrial electronics demand after a prolonged inventory correction, driving replenishment of microcontrollers, analog, connectivity and other embedded-control semiconductors and lifting fab utilization.
Key risk
Cyclicality in semiconductor demand impacting revenue stability.

Narrative & Theme

Industrial and Automotive Semiconductor Recovery
Part of Embedded Control Semiconductor Restocking and Utilization Recovery, with strong fit.
MCHP has a direct, economically meaningful exposure to the embedded semiconductor recovery rather than merely a generic technology adjacency.
Narrative HeatNeutral6.1 / 10
This reading is no longer current (last measured 2026-09-04). It is kept until the next scheduled measurement replaces it.
Theme HeatHeating up7.6 / 10
This is the company’s own research reading. The canonical heat measurement for this story has not run.

Business & Markets

Technology · Semiconductors
What they do

Microchip Technology Incorporated designs, manufactures, and sells embedded control semiconductor solutions globally, operating through Semiconductor Products and Technology Licensing segments.

How it earns

The company generates revenue primarily through transactional sales of semiconductor products and licensing fees.

Products & services
8-bit, 16-bit, 32-bit, and 64-bit mixed-signal microcontrollers
32-bit and 64-bit embedded mixed-signal microprocessors
Specialized mixed-signal microcontrollers for automotive, industrial, computing, communications, and other applications
Customers & end markets
Automotive manufacturers and suppliers
Industrial equipment makers
Computing and communications companies
Market position

Microchip is a leading provider in embedded control semiconductors with a broad product portfolio serving multiple end markets.

Demand drivers
Medium cyclicality

Semiconductor demand is influenced by broader technology cycles and end-market capital expenditures.