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Upturn AI Summary - About
Microchip Technology Inc(MCHP)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for MCHP
10/23/2026: MCHP (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Microchip Technology is a specialized semiconductor company known for its diverse portfolio of microcontrollers, analog, and mixed-signal chips that power embedded systems. The company holds a strong position in automotive and industrial markets, benefiting from a high-reliability, long-lifecycle product strategy. A primary growth opportunity lies in integrating edge AI and expanding into advanced automotive electrification. However, investors face risks from cyclical demand fluctuations, intense pricing competition, and the complexity of managing an extensive product catalog. The stock may suit value-oriented and dividend-seeking investors, but should be monitored for inventory cycle normalization and successful execution of strategic technology shifts.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | While the company has long-term growth potential, current cyclical headwinds make growth less predictable. |
| Momentum investor | Weak fit | The stock is currently sensitive to cyclical trends and lacks a strong positive upturn signal. |
| Value investor | Strong fit | The company often trades at valuations that provide an attractive entry point for long-term investors given its cash flow generation. |
| Dividend investor | Strong fit | Microchip has a history of growing its dividend, making it attractive for income-focused portfolios. |
| Low-risk investor | Mixed fit | The semiconductor sector is inherently volatile, which may challenge risk-averse investors. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock experiences significant fluctuations based on semiconductor industry cycles. |
| Valuation risk | Medium | Market expectations for a cyclical recovery can create valuation premiums or discounts. |
| Competition risk (Semiconductor peers) | High | Intense pricing pressure from larger players like Texas Instruments can impact margins. |
| Business quality | Strong | The company maintains high-margin products and a sticky customer base. |
| Dividend income | Strong | Management has prioritized consistent dividend returns even during market downturns. |
| Execution risk | Medium | Successfully integrating future acquisitions is critical to sustaining long-term growth. |
Price Behavior
Steady Uptrend
The stock demonstrates consistent and steady upward price momentum.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -18.54% | Avg. Invested days 30 | Today’s Advisory WEAK BUY |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/23/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 40.21B USD | Price to earnings Ratio 108.9 | 1Y Target Price 106.52 |
Price to earnings Ratio 108.9 | 1Y Target Price 106.52 | ||
Volume (30-day avg) 9.5M shares | Beta 1.76 | 52 Weeks Range 47.28 - 104.75 | Updated Date 10/25/2026 |
52 Weeks Range 47.28 - 104.75 | Updated Date 10/25/2026 | ||
Dividends yield (FY) 2.44% | Basic EPS (TTM) 0.68 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Microcontrollers | 8-bit, 16-bit, and 32-bit MCUs for embedded control. | This is the company's primary profit driver and market-leading segment. |
| Analog and Mixed-Signal | Power management, sensors, and interface chips. | These products are essential for modernizing industrial and automotive systems. |
| Geography | Global sales, with strong exposure to Asia, the Americas, and Europe. | Geographic diversity helps protect against region-specific economic downturns. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Valuation
Trailing PE 108.9 | Forward PE 20.53 | Enterprise Value 46.30B | Price to Sales(TTM) 7.85 |
Enterprise Value 46.30B | Price to Sales(TTM) 7.85 | ||
Enterprise Value to Revenue 9.04 | Enterprise Value to EBITDA 31.71 | Shares Outstanding 543.01M | Shares Floating 532.75M |
Shares Outstanding 543.01M | Shares Floating 532.75M | ||
Percent Insiders 1.79 | Percent Institutions 102.8 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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