Microchip Technology MCHP
Microchip Technology is a US manufacturer of microcontrollers, analog semiconductors, and connectivity solutions for industrial, automotive, aerospace, and consumer applications. Microchip Technology shows exceptional revenue growth of 38% and a gross margin of 60.19%, but its net debt/EBITDA of 3.40 and P/E of 115.72 make it vulnerable to rising rates, and its payout of 267.65% compromises dividend sustainability.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Microchip Technology is a US manufacturer of microcontrollers, analog semiconductors, and connectivity solutions for industrial, automotive, aerospace, and consumer applications. Microchip Technology shows exceptional revenue growth of 38% and a gross margin of 60.19%, but its net debt/EBITDA of 3.40 and P/E of 115.72 make it vulnerable to rising rates, and its payout of 267.65% compromises dividend sustainability.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.4 |
| Quality / Moat | 6.4 |
| Valuation | 5.0 |
| Growth | 8.9 |
| Dividend | 2.7 |
| Momentum | 3.8 |
| Risk & Context | 2.4 |
OVERALL SCORE: 5.4/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and geopolitical tensions pressuring the tech sector affect MCHP due to its high P/E (115.72) and net debt/EBITDA of 3.40, which makes financing more expensive and reduces the present value of future cash flows.
News considered in the analysis
- MCHP Expands 48V Power Portfolio: Can It Outpace TXN & ADI? — Expansión de la cartera de productos de 48V, relevante para centros de datos y aplicaciones industriales, pero sin cifras concretas de impacto en ingresos.
- Microchip Technology (MCHP) Stock Is Up, What You Need To Know — Titular genérico sin información nueva sobre fundamentales.
- Stock Market News for Sep 28, 2026 — Resumen de mercado sin información específica sobre MCHP.
- Update: Dow Snaps 3-Day Losing Streak as Oil Retreats; Wall Street Logs Weekly Gains — Noticia de mercado general, sin impacto directo en MCHP.
- What Does NVIDIA Offer That Texas Instruments Does Not? — Comparativa genérica entre competidores, sin información nueva sobre MCHP.
Verdict: Hold; the demanding valuation and high leverage limit attractiveness despite strong growth.
Main risk: Leverage of 3.40x EBITDA combined with a P/E of 115.72 exposes MCHP to a severe correction if rates keep rising or the semiconductor cycle cools.
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