Microchip Technology Inc MCHP

What the company does

Microchip Technology Inc is a large-cap company in the Technology sector (Semiconductors), with a market value of $40.2B, based in the USA.

It employs about 17,900 people and has been listed since Mar 19, 1993.

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. It operates in two segments, Semiconductor Products and Technology Licensing. The company offers general-purpose 8-bit, 16-bit, 32-bit, and 64-bit mixed-signal microcontrollers; 32-bit and 64-bit embedded mixed-signal microprocessors; and specialized mixed-signal microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interface, security, wired connectivity, and wireless connectivity applications.

Cheap or expensive? relatively expensive

Its price-to-earnings (P/E) is 108.9 versus 38.7 for the median of the Technology sector in our universe (65 companies) — relatively expensive.

Revenue is growing 38% a year — the market is paying ahead for that growth. If it slows, the high multiple becomes the risk.

On analysts' next-year forecasts the multiple drops to 20.5 — they expect higher earnings.

The average analyst price target is 106.52, 44% above the current price (their view, not ours).

The stock sits at 47% of its one-year range (0% = the low, 100% = the high).

The risks

• • The stock is more volatile than average (beta 1.8) — big daily moves both ways.
• • Quarterly report in 11 days (2026-11-05) — a day the stock can move a lot.

Strengths

• ✅ Profitable — 16 of every 100 dollars of revenue stays as profit.
• ✅ Generates free cash flow — profit becomes cash in the bank.
• ✅ Most analysts rate it buy (20 vs 0).
• ✅ Revenue is growing 38% a year.
• ✅ Pays a dividend (2.4% a year).

What changed this week

Over the past week the stock rose 0.3% (for comparison: S&P 500 -0.4%, sector ETF XLK -0.1%).

This week's news

• Microchip Adds the LX-820 Quartz Oscillator to its L-Series Timing Portfolio Developed for Low Earth Orbit Applications finance.yahoo.com · 2026-10-22
  What the article says

  Microchip Technology Inc. The company's L-Series timing devices are designed to scale between COTS and traditional space-grade solutions, offering shorter lead times at competitive price points CHANDLER, Ariz., Oct. 22, 2026 (GLOBE NEWSWIRE) -- Microchip Technology (Nasdaq: MCHP) today announces the expansion of its… source ↗

• Microchip Tech (MCHP) Upgraded to Buy: Here's What You Should Know finance.yahoo.com · 2026-10-19
  What the article says

  Microchip Technology (MCHP) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing… source ↗

• Wall Street Analysts See a 49% Upside in Microchip Tech (MCHP): Can the Stock Really Move This High? finance.yahoo.com · 2026-10-19
  What the article says

  Microchip Technology (MCHP) closed the last trading session at $73.85, gaining 0.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $110.04 indicates a 49% upside potential. The average… source ↗

• 1 Nasdaq 100 Stock to Own for Decades and 2 We Avoid finance.yahoo.com · 2026-10-19
  What the article says

  1 Nasdaq 100 Stock to Own for Decades and 2 We Avoid The Nasdaq 100 (^NDX) is known for housing some of the most innovative and fastest-growing companies in the market. But not every stock in the index is a winner - some are struggling with slowing growth, increasing competition, or unsustainable valuations. With… source ↗

• Microchip Technology (MCHP) Tests Its Valuation As The AUTOSAR Push Builds finance.yahoo.com · 2026-10-19
  What the article says

  Microchip Technology (MCHP) has been busy on the partnership front, with a fresh collaboration alongside Elektrobit focused on AUTOSAR-based automotive software. The move sharpens attention on how this semiconductor stock ties into software-heavy vehicles. Recent headlines around Microchip Technology, from the AUTOSAR… source ↗

• How New Product Launches Will Impact Microchip Stock finance.yahoo.com · 2026-10-19
  What the article says

  In early October 2026, Microchip Technology announced new data center connectivity and storage products, a radiation tolerant power converter for space applications, expanded capacitive touch controllers, and collaborations with Navitas and Elektrobit targeting AI rack power and AUTOSAR-based automotive software. The… source ↗

What changed since last week

• New risk flag: earnings report coming up.