Microchip (MCHP) Stock Analysis

November 11, 2026

This is a peer-relative look at Microchip (MCHP): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Semiconductors & Semiconductor Equipment peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Microchip (MCHP)
Profile Item	MCHP
Name	Microchip Technology Inc.
Country/Region	United States
GICS Sector	Information Technology
GICS Industry Group	Semiconductors & Semiconductor Equipment
GICS Industry	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Semiconductors
Market Capitalization	31.76 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	March 19, 1993
Security Type	Common Stock

Price Performance

Cumulative Growth

MCHP

GSPC

Microchip (MCHP) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Microchip (MCHP) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Microchip (MCHP) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Microchip (MCHP) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: MCHP	Industry group median
Total Return (1Y)	11.53%	35.06%
Total Return (3Y, Annualized)	-3.63%	22.14%
Total Return (5Y, Annualized)	-3.83%	7.43%

Risk Profile

Drawdown History

MCHP

GSPC

Microchip (MCHP) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Microchip (MCHP) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Microchip (MCHP) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: MCHP	Industry group median
Volatility (1Y, Annualized)	52.96%	73.97%
Beta (5Y)	1.91	1.84
Max Drawdown (5Y)	-63.77%	-64.62%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. MCHP is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Microchip (MCHP) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: MCHP	Industry group median
Sharpe Ratio (1Y)	0.14	0.42
Sortino Ratio (1Y)	0.21	0.61

Profitability

ROE (TTM)

Microchip (MCHP) posts ROE of 12.57%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

MCHP

Semiconductors & Semiconductor Equipment industry group

12.57%

Group distribution

Max: 52.82%
Q3: 22.26%
MCHP: 12.57%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

Largest peers

NVDA: 117.21%
SKHY: 92.54%
MU: 88.26%
AVGO: 44.25%
TSM: 41.86%
MCHP: 12.57%
AMD: 11.96%

Where Microchip (MCHP) stands on ROE within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Microchip (MCHP) keeps 14.96% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

MCHP

Semiconductors & Semiconductor Equipment industry group

14.96%

Group distribution

Max: 63.80%
Q3: 28.36%
MCHP: 14.96%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

Largest peers

SKHY: 70.27%
MU: 63.80%
NVDA: 63.66%
TSM: 51.12%
AVGO: 42.94%
AMD: 16.77%
MCHP: 14.96%

Where Microchip (MCHP) stands on net margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Microchip (MCHP) turns 29.13% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

MCHP

Semiconductors & Semiconductor Equipment industry group

29.13%

Group distribution

Max: 58.66%
Q3: 30.23%
MCHP: 29.13%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

Largest peers

MU: 80.68%
SKHY: 79.66%
NVDA: 66.24%
TSM: 58.66%
AVGO: 54.31%
MCHP: 29.13%
AMD: 21.17%

Where Microchip (MCHP) stands on operating margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Microchip (MCHP) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: MCHP	Industry group median
ROE (TTM)	12.57%	10.58%
ROA (TTM)	5.19%	4.85%
Net Margin (TTM)	14.96%	11.44%
Operating Margin (TTM)	29.13%	15.91%
Gross Margin (TTM)	62.70%	49.36%

Growth

Revenue Growth

Microchip (MCHP) grew revenue 7.08%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Microchip (MCHP): Revenue Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

EPS Growth

No usable EPS growth is available for Microchip (MCHP) this period, so the earnings-momentum read is skipped.

Microchip (MCHP): EPS Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

Growth Metrics

Microchip (MCHP) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: MCHP	Industry group median
Revenue Growth (YoY)	7.08%	9.64%
Revenue Growth (3Y CAGR)	-17.65%	0.00%
EPS Growth (YoY)	--	4.90%
EPS Growth (3Y CAGR)	-62.03%	-7.71%

Financial Strength

Current Ratio (MRQ)

Microchip (MCHP) has current ratio of 2.24, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

MCHP

Semiconductors & Semiconductor Equipment industry group

2.24

Group distribution

Max: 10.33
Q3: 5.62
Median: 3.33
Q1: 2.35
MCHP: 2.24
Min: 1.03

Largest peers

SKHY: 26.88
NVDA: 4.59
MU: 3.31
AMD: 2.73
TSM: 2.51
AVGO: 2.50
MCHP: 2.24

Where Microchip (MCHP) stands on current ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Microchip (MCHP) has debt-to-equity ratio of 0.84, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

MCHP

Semiconductors & Semiconductor Equipment industry group

0.84

Group distribution

Max: 1.46
MCHP: 0.84
Q3: 0.65
Median: 0.27
Q1: 0.04
Min: 0.00

Largest peers

MCHP: 0.84
AVGO: 0.60
NVDA: 0.17
AMD: 0.13
TSM: 0.12
SKHY: 0.05
MU: 0.04

Where Microchip (MCHP) stands on debt-to-equity ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Microchip (MCHP) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: MCHP	Industry group median
Current Ratio (MRQ)	2.24	3.33
Debt / Equity (MRQ)	0.84	0.27
Net Debt / EBITDA	2.73	-0.36

Dividends

Dividend Yield (TTM)

Microchip (MCHP) has dividend yield of 2.81%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

MCHP

Semiconductors & Semiconductor Equipment industry group

2.81%

Group distribution

MCHP: 2.81%
Max: 1.37%
Q3: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

SKHY: 2,118.64%
MCHP: 2.81%
TSM: 1.70%
AVGO: 0.89%
NVDA: 0.15%
MU: 0.09%
AMD: 0.00%

Where Microchip (MCHP) stands on dividend yield within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Microchip (MCHP) has payout ratio of 136.84%, meaning dividends exceeded current-period earnings. The gap would need to be covered by cash, retained earnings, financing, or other sources, so earnings alone do not support the payout.

MCHP

Semiconductors & Semiconductor Equipment industry group

136.84%

Group distribution

MCHP: 136.84%
Max: 49.64%
Q3: 21.71%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

MCHP: 136.84%
AVGO: 32.44%
TSM: 24.46%
NVDA: 3.54%
MU: 0.71%
SKHY: 0.00%
AMD: 0.00%

Where Microchip (MCHP) stands on payout ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Microchip (MCHP) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: MCHP	Industry group median
Dividend Yield (TTM)	2.81%	0.00%
Dividend Payout Ratio (TTM)	136.84%	0.00%

Valuation

P/E Ratio (TTM)

Microchip (MCHP) trades at P/E ratio of 43.87, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

MCHP

Semiconductors & Semiconductor Equipment industry group

43.87

Group distribution

Max: 110.34
Q3: 66.81
MCHP: 43.87
Median: 37.02
Q1: 23.96
Min: 8.12

Largest peers

AMD: 95.95
MCHP: 43.87
AVGO: 37.51
TSM: 24.33
NVDA: 23.60
MU: 9.28
SKHY: 8.12

Where Microchip (MCHP) stands on P/E ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Microchip (MCHP) trades at 5.67 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

MCHP

Semiconductors & Semiconductor Equipment industry group

5.67

Group distribution

Max: 21.42
Q3: 12.27
Median: 5.76
MCHP: 5.67
Q1: 2.73
Min: 0.00

Largest peers

AMD: 16.21
AVGO: 15.73
NVDA: 14.88
MU: 5.86
MCHP: 5.67
TSM: 0.39
SKHY: 0.00

Where Microchip (MCHP) stands on P/S ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Microchip (MCHP) trades at 4.78 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

MCHP

Semiconductors & Semiconductor Equipment industry group

4.78

Group distribution

Max: 14.06
Q3: 7.44
MCHP: 4.78
Median: 4.29
Q1: 2.30
Min: 0.20

Largest peers

TSM: 71.65
NVDA: 19.68
AVGO: 14.06
AMD: 10.77
MU: 5.64
MCHP: 4.78
SKHY: 3.95

Where Microchip (MCHP) stands on P/B ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Microchip (MCHP) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: MCHP	Industry group median
P/E Ratio (TTM)	43.87	37.02
P/S Ratio (TTM)	5.67	5.76
P/B Ratio (MRQ)	4.78	4.29
Free Cash Flow Yield (TTM)	4.85%	1.46%