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...

Comparison Snapshot

Key Financial Metrics

MPWR

Metric

MCHP

$49.56B

Market Cap

$39.54B

13.25%

Potential Profit

0.37%

Buy

Analyst Rating

Buy

Why It's Moving

MPWR Surges on AI Buzz from CES 2026 as Institutions Pile In Ahead of Earnings.

AI enthusiasm at CES drove a 5.8% stock pop, reinforcing MPWR's role in powering next-gen hardware amid softer economic data.
Vest Financial boosted its stake 52% with 16,892 shares, while Allstate initiated a new position—highlighting institutional bets on growth.
Quarterly dividend of $1.56 per share confirmed for January payout, underscoring steady capital returns alongside AI and automotive demand.

Sentiment:

🐃Bullish

Microchip Technology surges on upbeat Q3 guidance and wave of analyst upgrades.

Q3 sales guidance boosted to $1.185B from $1.109B-$1.149B, driven by inventory corrections, robust bookings, and customer designs moving to production.
Earnings estimates climbed sharply: current quarter consensus up 9.61% to $0.41/share (+105% YoY), full-year up 5.39% to $1.51/share (+15.3% YoY), with six upward revisions and zero downward.
Analysts upbeat—Piper Sandler lifted target to $85 (Overweight), Citigroup to $92 (Buy), B of A to $78 (Neutral)—reflecting confidence in recovery plan and 2026 growth.

Sentiment:

🐃Bullish

MPWR Surges on AI Buzz from CES 2026 as Institutions Pile In Ahead of Earnings.

AI enthusiasm at CES drove a 5.8% stock pop, reinforcing MPWR's role in powering next-gen hardware amid softer economic data.
Vest Financial boosted its stake 52% with 16,892 shares, while Allstate initiated a new position—highlighting institutional bets on growth.
Quarterly dividend of $1.56 per share confirmed for January payout, underscoring steady capital returns alongside AI and automotive demand.

Sentiment:

🐃Bullish

Microchip Technology surges on upbeat Q3 guidance and wave of analyst upgrades.

Q3 sales guidance boosted to $1.185B from $1.109B-$1.149B, driven by inventory corrections, robust bookings, and customer designs moving to production.
Earnings estimates climbed sharply: current quarter consensus up 9.61% to $0.41/share (+105% YoY), full-year up 5.39% to $1.51/share (+15.3% YoY), with six upward revisions and zero downward.
Analysts upbeat—Piper Sandler lifted target to $85 (Overweight), Citigroup to $92 (Buy), B of A to $78 (Neutral)—reflecting confidence in recovery plan and 2026 growth.

Sentiment:

🐃Bullish

Investment Analysis

Monolithic Power Systems

MPWR

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.

Microchip Technology

MCHP

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.

About The Companies

Monolithic Power Systems (MPWR)

Monolithic Power Systems (MPWR) designs analogue and mixed-signal power-management integrated circuits used across data centres, communications, consumer electronics, industrial equipment and automotive applications. The company is known for high-efficiency, compact power solutions that can command premium margins and recurring design wins. With a market capitalisation near $49.3bn, investors often watch its revenue growth, gross margins and cadence of new product launches as indicators of competitive strength. Key opportunities include rising power density in computing and EV adoption, while risks include semiconductor cyclicality, customer concentration and intensifying competition from larger analogue players. Financial performance can vary with end-market demand and supply conditions. This summary is educational only and not investment advice; investors should assess their own goals, diversify appropriately and consider professional advice where needed.

Microchip Technology (MCHP)

Microchip Technology Inc. (MCHP) is a US-listed semiconductor company known for microcontrollers, analogue and mixed-signal integrated circuits, memory and timing products. It serves diverse end markets including automotive, industrial, consumer and computing, which can provide both growth opportunities and exposure to cyclical demand. Investors often watch Microchip for its broad product portfolio, manufacturing scale and free cash flow generation, which can support reinvestment and dividends, though margins can be affected by pricing and commodity swings. Supply-chain dynamics and rapid technological change are important considerations: staying competitive requires ongoing R&D and occasional capital investment. The company's market capitalisation places it among mid-large peers in the sector, but valuation should be considered relative to growth prospects and peer metrics. This summary is for educational purposes only and not personalised financial advice. Values can rise and fall, and past performance is not a guarantee of future results; suitability depends on individual circumstances.

Monolithic Power Systems (MPWR) Next Earnings Date

Monolithic Power Systems (MPWR) is scheduled to report its next earnings on February 5, 2026, covering the fourth quarter and full year of 2025. This date is confirmed by the company's investor relations announcement and aligns with analyst consensus estimates. The earnings call is set for 2 PM PT following the market close release.

Microchip Technology (MCHP) Next Earnings Date

Microchip Technology (MCHP) is estimated to report its next earnings on Thursday, February 5, 2026, covering the third fiscal quarter of 2026 (ending December 2025). This date aligns with the company's historical pattern of early February releases for Q3 results, though it remains unconfirmed by the company. Investors should monitor official announcements for any updates.

Monolithic Power Systems (MPWR) Next Earnings Date

Monolithic Power Systems (MPWR) is scheduled to report its next earnings on February 5, 2026, covering the fourth quarter and full year of 2025. This date is confirmed by the company's investor relations announcement and aligns with analyst consensus estimates. The earnings call is set for 2 PM PT following the market close release.

Microchip Technology (MCHP) Next Earnings Date

Microchip Technology (MCHP) is estimated to report its next earnings on Thursday, February 5, 2026, covering the third fiscal quarter of 2026 (ending December 2025). This date aligns with the company's historical pattern of early February releases for Q3 results, though it remains unconfirmed by the company. Investors should monitor official announcements for any updates.

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

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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 Basket

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Monolithic Power Systems vs Microchip Technology

Comparison Snapshot

Why It's Moving

MPWR Surges on AI Buzz from CES 2026 as Institutions Pile In Ahead of Earnings.

Microchip Technology surges on upbeat Q3 guidance and wave of analyst upgrades.

MPWR Surges on AI Buzz from CES 2026 as Institutions Pile In Ahead of Earnings.

Microchip Technology surges on upbeat Q3 guidance and wave of analyst upgrades.