Microchip Technology Incorporated (MCHP)
Microchip Technology designs and manufactures the tiny, essential computer chips that act as the 'brains' for everything from cars to household appliances.
Is Microchip Technology Incorporated a good stock for a UK beginner?
The honest version: Microchip Technology designs and manufactures the tiny, essential computer chips that act as the 'brains' for everything from cars to household appliances.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Widespread adoption of their chips in new AI and IoT applications.
Obsolescence of current chip designs due to rapid industry shifts.
What does Microchip Technology Incorporated do?
Microchip Technology makes the microcontrollers and semiconductors that help electronic devices function, essentially acting as the invisible engine behind modern gadgets. Selling these components to a massive range of industries, including automotive, industrial, and consumer electronics, is what generates the profits. Inventory management is worth watching, because the chip industry is notoriously sensitive to swings in global demand.
On our factor screen it looks strongest on growth and income, and weakest on momentum.
- ✓Pays a dividend - about 2.5% a year
- ✓Growing - revenue up about 35% over the year
- !High P/E of 338 - big growth is already priced in
- Growth screens high (88/100)
- Strong gross margins indicate a healthy core business
- Essential role in the global supply chain
- Consistent dividend payments to shareholders
- High beta indicates significant share price volatility
- Heavy reliance on cyclical industries like automotive
- Geopolitical tensions affecting global chip supply chains
What do Microchip Technology Incorporated's numbers mean?
How much money does Microchip Technology Incorporated make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Microchip Technology Incorporated pay a dividend?
Yes - Microchip Technology Incorporated currently pays a dividend of about 2.5% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Microchip Technology Incorporated report earnings, and how did recent quarters go?
Microchip Technology Incorporated is next scheduled to report on about 2026-08-06 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-05-07 | $0.50 | $0.57 | Beat +13% |
| 2026-02-05 | $0.43 | $0.44 | Beat +3% |
| 2025-11-06 | $0.33 | $0.35 | Beat +5% |
| 2025-08-07 | $0.24 | $0.27 | Beat +13% |
| 2025-05-08 | $0.10 | $0.11 | Beat +5% |
| 2025-02-06 | $0.28 | $0.20 | Missed -28% |
Across the last 6 quarters here, Microchip Technology Incorporated came in ahead of what analysts expected 5 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Hewlett Packard EnterpriseWhat are the scenarios for Microchip Technology Incorporated?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Microchip Technology Incorporated?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Strong gross margins indicate a healthy core business
- Essential role in the global supply chain
- Consistent dividend payments to shareholders
- High current P/E ratio suggests a high valuation
- Low net margin compared to gross margin indicates high operating costs
- Low return on equity suggests inefficient use of shareholder capital
- High beta indicates significant share price volatility
- Heavy reliance on cyclical industries like automotive
- Geopolitical tensions affecting global chip supply chains
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained drop in gross margins below 40%
- A significant loss of market share to competitors
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.