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: There's no rating here and nothing for sale. In its favour: Strong gross margins indicate a healthy core business. Worth weighing: High current P/E ratio suggests a high valuation. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.
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.
How much has Microchip Technology Incorporated actually fallen?
Over the last 2 years of daily prices, Microchip Technology Incorporated fell as much as −58% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.
Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.
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.
What do the numbers say about Microchip Technology Incorporated's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
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: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. suggests a high valuation
- Low net margin: How much of each £1 of sales becomes profit after all costs. Higher = more profitable per sale. compared to gross margin: The share of each £1 of sales left after the direct cost of making the product, before other running costs. Higher usually means more pricing power. indicates high operating costs
- Low return on equity: How much profit the company makes for each £1 shareholders have put in. Higher usually means a more efficient business. suggests inefficient use of shareholder capital
- High beta indicates significant share price volatility
- Heavy reliance on cyclical: A business whose sales and profits rise and fall with the wider economy - booming in good times, sinking in downturns. Miners, carmakers and banks are classic examples. 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 2026-08-02 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.