Reading the tape
NASDAQ: MCHP
Microchip Technology Incorporated
Technology · Semiconductors
Market Cap
$50.84B
52w High
$94.56
52w Low
$46.68
P/E
-524.41
Volume
8.03M
Outstanding Shares
541.14M
Price vs Fundamentals
Why The Stock Is Moving
Momentum disconnected from fundamentalsModerate confidence
Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.
1Y Price: 104.33%Revenue (TTM): -8.08%FCF (TTM): -15.5%P/FCF: 100th pct
What changed
The stock rose 104.33% over the last year. Revenue declined 8.08% over the trailing twelve months. Operating margin moved from 13.67% to 4.09%. Free cash flow declined 15.5% over the trailing twelve months.
What the market seems to be pricing
The stock is rising despite deteriorating fundamentals and now sits at the 100th percentile of its historical P/FCF range. This is a momentum-driven move — the market may be front-running a recovery that has not yet appeared in reported numbers.
What would invalidate this read
Operating margin (currently 4.09%) would need to stabilize or improve to justify the move. Revenue is declining 8.08% — a trend reversal in the next report would be the key signal to watch. This read is wrong if the next period shows operating metrics turning the corner. At that point the price would be anticipating real improvement rather than running ahead of it.
Company profile
Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia.
CEOStephen Sanghi
SectorTechnology
IndustrySemiconductors
Employees22,300
IPO dateMar 19, 1993
Valuation
Forward P/E—
EV/EBITDA29.71
Enterprise value$30.91B
Stock splits
Oct 13, 2021↑ Forward
Every 1 shares became 2
May 9, 2002↑ Forward
Every 2 shares became 3
Sep 27, 2000↑ Forward
Every 2 shares became 3
Feb 8, 2000↑ Forward
Every 2 shares became 3
Jan 7, 1997↑ Forward
Every 2 shares became 3
Nov 9, 1994↑ Forward
Every 2 shares became 3
Apr 5, 1994↑ Forward
Every 2 shares became 3
Sep 14, 1993↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth15.59%
Gross margin51.57%▼14.32%vs FY2024
Operating margin4.09%▼80.01%vs FY2024
ROE-0.01%▼100.02%vs FY2024
Analyst consensus
RatingBuy
Target price$87.00▼7.40%
32
Buy
14
Hold
0
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
May 7, 2026
Q2 FY26 · EPS est $0.50 · Revenue est $1.26B
View
Dividends
$1.82/shareQuarterlyDividend Achiever · 22yrStretchedMCHP pays a dividend with a 1.94% dividend yield, 22 consecutive years of growth, growing at 19.49% annually, covered 0.8× by free cash flow.
Dividend Yield
1.94%
Annual Div / Share
$1.82
5yr CAGR
+19.49%
Doubles every ~3.9yr
Payout Ratio
—
Stretched
Dividend Growth Rate
3yr CAGR
+12.95%
5yr CAGR
+19.49%
10yr CAGR
+9.77%
Dividend Safety
2/10Stretched
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2025$1.82+0.2%
2024$1.82+8.0%
2023$1.68+33.2%
2022$1.26+38.8%
2021$0.91+21.8%
2020$0.75+2.0%
2019$0.73+0.5%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$19/yr
$2/mo
In 5 yrs
$34/yr+76%
$3/mo
In 10 yrs
$60/yr+211%
$5/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$19/yr $2/mo | $34/yr+76% $3/mo | $60/yr+211% $5/mo |
Long-range projections use a capped 12% annual growth assumption.
Yield-on-cost grows from 1.94% → 6.02% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
MCHP has raised its dividend for 22 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Strong dividend growth rate
The 5-year CAGR of 19.49% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
Dividend exceeds free cash flow
Free cash flow covers only 0.79× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.