Monolithic Power Systems vs Microchip Technology
This page offers a detailed comparison of Monolithic Power Systems and Microchip Technology. Explore their distinct business models, analyse their financial performance, and understand their positions within the current market context. This neutral review aims to provide clarity on each company's profile. Educational content, not financial advice.
This page offers a detailed comparison of Monolithic Power Systems and Microchip Technology. Explore their distinct business models, analyse their financial performance, and understand their positions...
Why It's Moving
MPWR Shares Surge on Earnings Beat, Dividend Hike, and Analyst Upgrades
- Q4 earnings of $4.73 per share topped expectations by 1.30%, with revenue also beating forecasts, underscoring robust demand in power management chips.
- Board hiked the quarterly dividend 28% to $2.00 per share, payable April 2026, signaling strong cash flow conviction and shareholder rewards.
- Needham and Stifel raised price targets to $1,300 with Buy ratings, highlighting sustained growth potential despite recent price momentum.
MCHP Stock Warning: Why Analysts See -2% Downside Risk
- Q3 net sales hit $1.19 billion, surpassing expectations and driving gross margins to 60.5% from 52% a year ago, underscoring the success of the company's nine-point recovery plan.
- Management lifted Q4 outlook to $1.26 billion midpoint, fueled by robust bookings, inventory normalization, and momentum in automotive and connectivity end-markets.
- While Needham hiked its target to $84 with a Buy rating, GuruFocus' GF Value estimate of $57.45 implies -2% downside risk from current levels, highlighting valuation tensions.
MPWR Shares Surge on Earnings Beat, Dividend Hike, and Analyst Upgrades
- Q4 earnings of $4.73 per share topped expectations by 1.30%, with revenue also beating forecasts, underscoring robust demand in power management chips.
- Board hiked the quarterly dividend 28% to $2.00 per share, payable April 2026, signaling strong cash flow conviction and shareholder rewards.
- Needham and Stifel raised price targets to $1,300 with Buy ratings, highlighting sustained growth potential despite recent price momentum.
MCHP Stock Warning: Why Analysts See -2% Downside Risk
- Q3 net sales hit $1.19 billion, surpassing expectations and driving gross margins to 60.5% from 52% a year ago, underscoring the success of the company's nine-point recovery plan.
- Management lifted Q4 outlook to $1.26 billion midpoint, fueled by robust bookings, inventory normalization, and momentum in automotive and connectivity end-markets.
- While Needham hiked its target to $84 with a Buy rating, GuruFocus' GF Value estimate of $57.45 implies -2% downside risk from current levels, highlighting valuation tensions.
Investment Analysis
Pros
- Monolithic Power Systems achieved robust revenue growth of 21% in 2024 alongside EPS surging 318% year-over-year.
- Company maintains high profitability with 26% EBIT margins and superior return on equity at 26%.
- Strong positioning in AI data centres and automotive sectors drives projected revenue to $3.9 billion by 2028.
Considerations
- High beta of 1.46 exposes stock to elevated market volatility.
- Short ordering cycles and potential inventory corrections pose execution risks amid AI hype.
- Analysts forecast significant EPS decline of 50.7% in 2025 following exceptional prior growth.
Pros
- Microchip Technology exhibits resilient profitability with consistent margins in microcontroller market.
- Diversified portfolio across industrial, automotive and consumer segments mitigates sector-specific risks.
- Strong balance sheet supports ongoing share buybacks and quarterly dividend payments to shareholders.
Considerations
- Exposure to cyclical semiconductor demand heightens vulnerability to economic downturns.
- Intense competition from larger peers like Texas Instruments pressures market share and pricing.
- Ongoing inventory adjustments in distribution channels risk near-term revenue volatility.
Related Market Insights
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August 14, 2025
Related Market Insights
The PC Market's Surprising Comeback: Why Hardware Suppliers Are Thriving
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Monolithic Power Systems (MPWR) Next Earnings Date
Monolithic Power Systems (MPWR) is scheduled to report its next earnings on Thursday, February 5, 2026, after market close. This release will cover the Q4 and full year 2025 results, with a conference call at 2:00 PM PT. Analysts project EPS of $4.73 and revenue around $742 million for the quarter. As of February 2, this remains the confirmed date per company announcements.
Microchip Technology (MCHP) Next Earnings Date
Microchip Technology (MCHP) is scheduled to report its next earnings on Thursday, February 5, 2026, with a conference call at 5:00 PM ET. This release will cover results for Q3 FY2026, following the prior Q2 FY2026 report on November 6, 2025. Investors should monitor the company's investor relations page for any updates to this schedule.
Monolithic Power Systems (MPWR) Next Earnings Date
Monolithic Power Systems (MPWR) is scheduled to report its next earnings on Thursday, February 5, 2026, after market close. This release will cover the Q4 and full year 2025 results, with a conference call at 2:00 PM PT. Analysts project EPS of $4.73 and revenue around $742 million for the quarter. As of February 2, this remains the confirmed date per company announcements.
Microchip Technology (MCHP) Next Earnings Date
Microchip Technology (MCHP) is scheduled to report its next earnings on Thursday, February 5, 2026, with a conference call at 5:00 PM ET. This release will cover results for Q3 FY2026, following the prior Q2 FY2026 report on November 6, 2025. Investors should monitor the company's investor relations page for any updates to this schedule.
Which Baskets Do They Appear In?
Powering The PC Resurgence
Lenovo's recent announcement of a 108% profit increase highlights a resilient and growing PC market. This theme invests in the key hardware and semiconductor suppliers poised to benefit from sustained demand for personal computers and AI infrastructure.
Published: August 14, 2025
Explore BasketWhich Baskets Do They Appear In?
Powering The PC Resurgence
Lenovo's recent announcement of a 108% profit increase highlights a resilient and growing PC market. This theme invests in the key hardware and semiconductor suppliers poised to benefit from sustained demand for personal computers and AI infrastructure.
Published: August 14, 2025
Explore BasketBuy MPWR or MCHP in Nemo
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