Why does MCHP lag the market?
Up 18% over three years while the S&P 500 rose 89%; up 28% in the past year.
- Its profit per share fell by more than half,
MCHP's Quality Score fell 4 points on Fri, Oct 30, to 7. Closed below its falling 200-day average. 1 more reason, for Pro members.
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Up 18% over three years while the S&P 500 rose 89%; up 28% in the past year.
| The company | A $478M profit |
| Latest filing | 10-Q, Aug 6 |
ReportReports Thursday, after the close. Every 3 months, a company tells everyone how much it sold and earned. It fell after 3 of its last 4 reports, +0.9% on average. Past reports ›
“Nvidia Weighs Credit Backstop for Nscale Data Center as AI Chip Stocks Slide”
MCHP closed −4.7% that day.
After its last 4 reports it closed +0.9% on average, higher 1 of 4 times.
Averagefor quality, not price, 3 of 14 chart checks firingWhat the Quality Score means
MCHP is #24 of 84 by Quality Score.
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Net income over four quarters: MCHP $478M, TXN $6.05B, ADI $4.14B, MXL -$104M.
Reports Thu Nov 5, after the close (in 3 days). Confirmed.
What an earnings report is: every 3 months, a company tells everyone how much it sold and earned. We read the figures, the outlook, and how the stock moved after.
The figures are not read from the release yet.
MCHP's results filing gives no sales by line in a table we read.
| Measure | Figure |
|---|---|
| Net sales | 7% to 9% |
“Improving factory utilization and operational leverage are expected to support further progress toward our long-term margin objectives.”
From its results filing (SEC filing · Aug 6)
Sales fell 2.8% a year over 5 years, fiscal 2021 to 2026.
Pays $1.82 a share a year.
| Reported | Gap | Reaction | 5 sessions |
|---|---|---|---|
| Aug 6, 2026 | +9.4% | +13.9% | +4.5% |
| May 7, 2026 | +3.4% | -2.5% | -4.5% |
| Feb 5, 2026 | -4.7% | -2.6% | +1.1% |
Sales grew in four of the last seven years, to $4.7B in 2026. It turned a profit in 2026 after a loss in 2025.
Its dividends come to 89% of its free cash flow.
| Dividend | $1.82 a share a year |
| Paid out | About $988M a year |
| Free cash flow | $1.1B |
4 insiders sold $4.3M across 8 filings in the last 6 months. No open-market buys on record. The newest:
12 trades disclosed in the last six months. The newest:
Officers and directors with a Form 4 in the last 12 months.
In ETFs: MCHP is 2.4% of SOXX, 1.0% of SMH, and 0.2% of XLK, the most of the 24 funds Breakaway covers, by their holdings as filed for Jun 30, 2026.
Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.
“The semiconductor industry is intensely competitive and has historically been characterized by price erosion and rapid technological change.”
MCHP scores 7 today, which Breakaway calls Average. It is #24 of 84 in Semiconductors by Quality Score, with 3 of 14 chart checks firing. Up 18% over three years while the S&P 500 rose 89%; up 28% in the past year. Breakaway does not say whether to buy any stock: the score does not know your situation, and it is not a recommendation to buy or sell anything. Please do your own research.
MCHP scores 7 today, which Breakaway calls Average (6 to 10). That is #24 of 84 in Semiconductors by Quality Score. The score adds up the chart checks, the trend, the company's filed sales, its profits, the news, insider trades, and Congress trades. The section above lists the lines behind MCHP's 7.
4 insiders sold $4.3M across 8 filings in the last 6 months. No open-market buys on record. The newest is James Eric Bjornholt, Senior Corporate VP and CFO, who sold $67K on Aug 17. Every filing, with the scored weight, for Pro members.
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