How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Microchip Technology (MCHP) ten years ago? It may not have been easy to hold on to MCHP for all that time, but if you did, how much would your investment be worth today?
Microchip Technology's Business In-Depth
With that in mind, let's take a look at Microchip Technology's main business drivers.
Microchip Technology Inc. develops and manufactures microcontrollers, memory and analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks.
Chandler, AZ-based Microchip reported total revenues of $4.4 billion in the fiscal 2025.
Beginning in calendar year 2021, the company reports FPGA revenues combined with its licensing, memory and other or LMO segment revenues under a new revenue category referred to as “other.” The company now has three major product lines:
Mixed-signal Microcontrollers (49.2% of fiscal 2025 revenues): This product portfolio comprises 8-bit, 16-bit and 32-bit PIC microcontrollers and 16-bit dsPIC digital signal controllers. Microchip's expanding product portfolio, driven by new microcontrollers’ rollouts, aids it in expanding its customer base and sustaining its leading position in the market.
Analog (27%): These products consist of several families with approximately 800 power management, linear, mixed-signal, thermal management, RF Linear drivers, safety and security, and interface products. The line of mixed-signal products primarily includes data converters that convert data from analog to digital or vice versa.
Other (23.8%): The product line now comprises revenues from FPGA and LMO segments. LMO segment constitutes a combination of license fees and royalties related to SuperFlash technology, and fees for engineering services. Microchip licenses its SuperFlash technology to foundries, integrated device manufacturers and design partners across the world.
The FPGA product line was primarily acquired as part of the Microsemi acquisition.
In the fiscal 2025, Americas, Europe and Asia contributed 29.2%, 21.6% and 49.2%, respectively to net sales. Distributors contributed approximately 45% to net sales in the fiscal 2025.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Microchip Technology, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in July 2015 would be worth $3,324.86, or a gain of 232.49%, as of July 14, 2025, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 201.44% and gold's return of 179.16% over the same time frame.
Analysts are forecasting more upside for MCHP too.
Microchip is suffering from a broad-based weakness across multiple product lines, including microcontrollers, analog, and FPGAs, leading to a sequential decline in net sales. The company continues to navigate a significant inventory correction post-COVID super-cycle, with inventory days rising to 251, above its target of 130-150 days. It is dealing with broad-based weakness across multiple business segments, including microcontrollers, analog, and FPGA products. A decline in customer demand, low bookings, and reduced backlog is a concern. However, the company is benefiting from strong design wins, particularly in the industrial, aerospace, and automotive sectors, with innovative product developments like the 64-bit RISC-V processors and advanced Wi-Fi solutions. Shares have outperformed the industry year to date.
The stock has jumped 13.43% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2025; the consensus estimate has moved up as well.
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Microchip Technology Incorporated (MCHP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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