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 develops, manufactures, and sell smart, connected and secure embedded control solutions. The company focuses on general purpose and specialized 8-bit, 16-bit, and 32-bit mixed-signal microcontroller, microprocessors, analog, FPGA, and memory products. Microchip now offers 64-bit mixed-signal microprocessors expanding its footprint beyond the 32-bit architecture.
The company’s product portfolio supports artificial intelligence (AI)/machine learning (ML), data centers, edge computing and Internet of Things (IoT), E-mobility, networking and connectivity. Automotive, aerospace and defense, communications, consumer appliances, data centers and computing, and industrial are key end-markets powered by Microchip’s products.
Chandler, AZ-based Microchip reported total revenues of $4.4 billion in the fiscal 2025. The company reports under three major product lines:
Mixed-signal Microcontrollers (49.2% of fiscal 2025 revenues): This product portfolio comprises 8-bit, 16-bit and 32-bit mixed-signal microcontroller and 32-bit embedded mixed-signal microprocessor markets. The company also offer specialized mixed-signal microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity and wireless connectivity applications.
Analog (27%): These segment offers power management, linear, mixed-signal, high voltage, thermal management, discrete diodes and MOSFETS, RF, drivers, safety, security, timing, USB, ethernet, wireless and other interface products.
Other (23.8%): The product line now comprises revenues from FPGA, license fees and royalties related to SuperFlash technology, and fees for engineering services, memory products, timing systems, manufacturing services), legacy application specific integrated circuits, and products for aerospace applications.
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
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Microchip Technology ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2016 would be worth $3,720.11, or a gain of 272.01%, as of January 29, 2026, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 268.55% and gold's return of 362.43% over the same time frame.
Looking ahead, analysts are expecting more upside for MCHP.
Microchip benefits from growing AI investments. The company's Gen 4 and Gen 5 data center products are witnessing strong sales growth. Its new products are expected to gain traction with the launch of the industry's first 3-nanometer-based PCIe Gen 6 switch that powers modern AI infrastructure. These switches offer double bandwidth, lower latency, advanced security and high-density AI connectivity for next-generation cloud and data center performance. The success of the restructuring plan also bodes well for MCHP's prospects. Microchip now expects net sales to be about $1.185 billion for the third quarter of fiscal 2026. The revised net sales guidance reflects a broad-based recovery in most of Microchip's end markets, driven by improving inventory conditions at distributors as well as direct customers.
Over the past four weeks, shares have rallied 25.99%, and there have been 9 higher earnings estimate revisions in the past two months for fiscal 2025 compared to none lower. 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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