Microchip Technology, Inc.

Microchip Technology, Inc.

MCHP

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Market Cap$51.31B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Microchip Technology, Inc.Microchip Technology, Inc.253.51.92%3%12.10.8

Earnings Call Q3 2026

February 5, 2026 - AI Summary

Strong Financial Performance: Microchip Technology reported net sales of $1.186 billion for December 2025, an increase of 4% sequentially and 15.6% year-over-year. This surpassed their guidance expectations, indicating a healthy growth trajectory driven primarily by networking, data center, and licensing business units. Non-GAAP earnings per diluted share were $0.44, surpassing guidance by $0.04.
Guidance for March 2026: The company expects net sales to be approximately $1.26 billion (plus or minus $20 million), representing a sequential growth of 6.2% and an increase of 29.8% from the previous year. Non-GAAP gross margin is projected to range between 60.5% and 61.5%, indicating continued operational efficiency despite ongoing financial challenges.
Inventory and Utilization Challenges: The company reported a decrease in inventory balance to $1.058 billion but noted charges of $51.7 million related to capacity underutilization and significant inventory reserve charges. Although inventory normalization is expected, factory utilization rates remain low, which could present ongoing operating margin headwinds until utilization improves.

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$102.10

Target Price by Analysts

5.7% upsideMicrochip Technology Target Price DetailsTarget Price
$12.54

Current Fair Value

87% downside

Overvalued by 87% based on the discounted cash flow analysis.

Share Statistics

Market cap$51.31 Billion
Enterprise Value$57.13 Billion
Dividend Yield$1.82 (1.92%)
Earnings per Share$0.27
Beta1.74
Outstanding Shares541,500,000

Return

Return on Equity2.62%ROE
Return on Assets1.41%
Return on Invested Capital3.80%

Valuation & Multiples

P/E Ratio253.48P/E Ratio
PEG-132.04PEG
Price to Sales12.07Price to Sales
Price to Book Ratio6.9Price to Book Ratio
Enterprise Value to Revenue12.12
Enterprise Value to EBIT113.59
Enterprise Value to Net Income282
Total Debt to Enterprise0.11
Debt to Equity0.79Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 14, 2026
EPS Estimate
$0.50
Average shareholder expectation
Revenue Estimate
$1.26 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 6, 2026
EPS Estimate
$0.66
Average shareholder expectation
Revenue Estimate
$1.46 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.3752▼ 12.22%
Total Calls21,662,321▲ 38.01%
Total Puts8,128,076▲ 4.11%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %94.07%▼ 1.68%
Total Invested$32.74B▼ 0.54%
Investors Holding1,222▲ 36.00%

ESG Score

No data

About Microchip Technology, Inc.

CEO: Steve Sanghi

Relevant Senate Committees

Finance

Controls taxation and trade policy, directly influencing corporate profitability, R&D tax credits, and the cost of international supply chains for a global semiconductor manufacturer.

Appropriations

Directly allocates federal discretionary spending, determining funding for defense, scientific research, and other programs that can translate into contracts or R&D opportunities for MCHP.

Judiciary

Oversees intellectual property laws (crucial for semiconductor innovation) and antitrust enforcement, significantly shaping the competitive landscape and M&A activity within the tech sector.

Armed Services

Authorizes defense spending (NDAA) and oversees the Department of Defense, directly impacting revenue streams and R&D funding for defense contractors, a key market for MCHP's secure solutions.

Commerce, Science, and Transportation

Has broad jurisdiction over interstate commerce, technology policy, and sectors like telecommunications and aerospace which are key markets for MCHP's products and services.

Foreign Relations

Guides foreign policy, including sanctions and trade agreements, which critically impact MCHP's global supply chain, export controls, and international market access for semiconductor products.