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Upturn AI SWOT - About
MCHP 
Microchip Technology Inc (MCHP)
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Upturn Advisory Summary
03/25/2025: MCHP (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -43.66% | Avg. Invested days 28 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/25/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 26.08B USD | Price to earnings Ratio 85.09 | 1Y Target Price 65.61 |
Price to earnings Ratio 85.09 | 1Y Target Price 65.61 | ||
Volume (30-day avg) 11025591 | Beta 1.52 | 52 Weeks Range 47.21 - 98.59 | Updated Date 04/1/2025 |
52 Weeks Range 47.21 - 98.59 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 3.76% | Basic EPS (TTM) 0.57 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 6.49% | Operating Margin (TTM) 3.35% |
Management Effectiveness
Return on Assets (TTM) 2.52% | Return on Equity (TTM) 4.71% |
Valuation
Trailing PE 85.09 | Forward PE 33.11 | Enterprise Value 32282219996 | Price to Sales(TTM) 5.48 |
Enterprise Value 32282219996 | Price to Sales(TTM) 5.48 | ||
Enterprise Value to Revenue 6.79 | Enterprise Value to EBITDA 22.65 | Shares Outstanding 537819008 | Shares Floating 526024599 |
Shares Outstanding 537819008 | Shares Floating 526024599 | ||
Percent Insiders 2.1 | Percent Institutions 99.64 |
Analyst Ratings
Rating 4.16 | Target Price 64.5 | Buy 4 | Strong Buy 13 |
Buy 4 | Strong Buy 13 | ||
Hold 7 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Microchip Technology Inc
Company Overview
History and Background
Microchip Technology Inc. was founded in 1989 as a spin-off from General Instrument's Microelectronics Division. It focused on developing and manufacturing embedded control solutions, initially specializing in PIC microcontrollers. Over time, it expanded its product portfolio through organic growth and acquisitions, becoming a leading provider of microcontrollers, mixed-signal, analog, and FPGA solutions.
Core Business Areas
- Microcontrollers: Microchip offers a wide range of PIC microcontrollers used in various embedded applications, known for their low power consumption and ease of use.
- Analog: The Analog segment provides a portfolio of high-performance analog and mixed-signal integrated circuits for applications in industrial, automotive, and consumer markets.
- FPGA: Field Programmable Gate Arrays (FPGAs) are reconfigurable integrated circuits, offering flexibility for diverse applications, acquired through the Microsemi acquisition.
- Memory Products: Offers a range of memory solutions, including serial EEPROMs and SRAMs, for embedded systems.
Leadership and Structure
Ganesh Moorthy is the President and CEO. The company has a functional organizational structure with dedicated teams for engineering, sales, marketing, and operations. The board of directors provides oversight and strategic guidance.
Top Products and Market Share
Key Offerings
- Description: PIC microcontrollers are used in various embedded applications. Microchip is a key player. Competitors include STMicroelectronics, Renesas and NXP.
- Product Name 1: PIC Microcontrollers: Microcontrollers account for a large portion of Microchip's revenue. While specific market share data fluctuates, Microchip is a significant player in the 8-bit, 16-bit, and 32-bit microcontroller markets. Competitors include STMicroelectronics, Renesas, and NXP Semiconductors.
- Description: Microchip provides Analog ICs for applications in various markets. Key competitors include Texas Instruments, Analog Devices, and Maxim Integrated.
- Product Name 2: Analog ICs: Microchip provides analog and mixed-signal ICs for industrial, automotive, and consumer applications. While specific market share data is difficult to pinpoint, Microchip's position in the analog IC market is strong. Key competitors include Texas Instruments, Analog Devices, and Maxim Integrated.
- Description: Microchip provides FPGA Solutions for various applications. Competitors include Xilinx (AMD) and Intel (Altera).
- Product Name 3: FPGA Solutions: FPGAs provide programmable logic for diverse applications. Market share data is volatile, but it has a significant presence. Competitors include Xilinx (AMD) and Intel (Altera).
Market Dynamics
Industry Overview
The semiconductor industry is cyclical and driven by demand in various end markets, including automotive, industrial, consumer electronics, and communications. It is characterized by intense competition, rapid technological advancements, and increasing globalization.
Positioning
Microchip Technology Inc. is positioned as a leading provider of embedded control solutions. Its competitive advantages include a broad product portfolio, strong customer relationships, and a focus on low-power and cost-effective solutions.
Total Addressable Market (TAM)
The TAM for the semiconductor market is expected to be in the hundreds of billions of dollars. Microchip is positioned to capture a significant portion of this TAM by focusing on embedded control, analog, and FPGA solutions.
Upturn SWOT Analysis
Strengths
- Broad Product Portfolio
- Strong Customer Relationships
- Focus on Low-Power and Cost-Effective Solutions
- Extensive Distribution Network
- Strong Focus on Customer Support
Weaknesses
- Exposure to Cyclical Semiconductor Industry
- Reliance on Third-Party Manufacturing
- Intense Competition
- Integration Risks Associated with Acquisitions
Opportunities
- Growth in IoT and Connected Devices
- Increasing Demand for Automotive Electronics
- Expansion into Emerging Markets
- Growing Adoption of FPGAs in Various Applications
Threats
- Economic Downturns
- Geopolitical Instability
- Supply Chain Disruptions
- Rapid Technological Changes
- Increased Competition
Competitors and Market Share
Key Competitors
- TXN
- ADI
- STM
Competitive Landscape
Microchip Technology Inc. competes with various companies in the semiconductor industry. It leverages its broad product portfolio and strong customer relationships to maintain a competitive edge. However, competitors like Texas Instruments and Analog Devices have larger market capitalization and revenue.
Major Acquisitions
Atmel
- Year: 2016
- Acquisition Price (USD millions): 3560
- Strategic Rationale: The acquisition of Atmel expanded Microchip's microcontroller portfolio and strengthened its position in the embedded market.
Microsemi
- Year: 2018
- Acquisition Price (USD millions): 8350
- Strategic Rationale: The acquisition of Microsemi broadened Microchip's product offerings to include high-performance analog and mixed-signal solutions, as well as FPGAs.
Growth Trajectory and Initiatives
Historical Growth: Microchip Technology Inc. has experienced growth through organic initiatives and acquisitions.
Future Projections: Future growth projections are based on analyst estimates. Check the latest analyst reports for accurate values.
Recent Initiatives: Recent initiatives include product launches, strategic acquisitions, and investments in research and development.
Summary
Microchip Technology Inc. is a strong player in the embedded control market, with a diverse product portfolio and a history of successful acquisitions. Its focus on low-power solutions and strong customer relationships are key strengths. However, the company faces challenges related to industry cyclicality and intense competition, requiring ongoing innovation and strategic investments to maintain its growth trajectory.
Similar Companies
ADI
Analog Devices Inc
ADI
Analog Devices Inc
NXP
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NXP
Nuveen Select Tax-Free Income Portfolio
STM
STMicroelectronics NV ADR
STM
STMicroelectronics NV ADR
TXN
Texas Instruments Incorporated
TXN
Texas Instruments Incorporated
Sources and Disclaimers
Data Sources:
- Company Website
- SEC Filings
- Analyst Reports
- Industry Publications
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Market data and analyst estimates are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Microchip Technology Inc
Exchange NASDAQ | Headquaters Chandler, AZ, United States | ||
IPO Launch date 1993-03-19 | CEO, President & Chair of the Board Mr. Stephen Sanghi | ||
Sector Technology | Industry Semiconductors | Full time employees 22300 | Website https://www.microchip.com |
Full time employees 22300 | Website https://www.microchip.com | ||
Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications. It also provides analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes, and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program microcontroller, FPGA, and microprocessor products for specific applications. In addition, the company offers serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, and aerospace products. The company was incorporated in 1989 and is headquartered in Chandler, Arizona.
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