Microchip Technology vs Hewlett Packard Enterprise

This page compares Microchip Technology and Hewlett Packard Enterprise, examining business models, financial performance, and market context in a clear, accessible way. Educational content, not financial advice.

This page compares Microchip Technology and Hewlett Packard Enterprise, examining business models, financial performance, and market context in a clear, accessible way. Educational content, not financ...

About The Companies

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.

Hewlett Packard Enterprise (HPE)

Hewlett Packard Enterprise (HPE) is an enterprise technology company focused on servers, storage, networking, edge computing and hybrid cloud software and services. Investors should know HPE is transitioning revenue toward recurring software and as-a-service offerings while still deriving substantial sales from hardware and integrated solutions for large businesses and public-sector customers. This mix can offer more predictable income over time but depends on successful execution and customer adoption. HPE faces competition from large cloud providers and other hardware vendors, and its results remain sensitive to corporate IT spending cycles and macroeconomic conditions. With a market capitalisation of about $30.70bn, HPE may suit investors looking for exposure to enterprise IT transformation, but outcomes can vary and past performance is not indicative of future returns. This is general information only—not personalised advice—and investors should assess risk tolerance and diversify accordingly.

Comparison Snapshot

Key Financial Metrics

MCHP

Metric

HPE

$36.31B

Market Cap

$31.48B

10.54%

Potential Profit

8.22%

Buy

Analyst Rating

Buy

Why It's Moving

Microchip Technology Lifts Q3 Guidance to High End, Fuels Rally on AI Chip Momentum

Raised Q3 FY2026 sales guidance to $1.149B from prior $1.109B–$1.149B range, signaling robust demand recovery via a nine-point execution plan.
Sequential bookings jumped 10% with book-to-bill at 1.06, reflecting improved visibility and customer confidence in Microchip's offerings.
Launched ultra-low-power PAC1711 and PAC1811 digital power monitors tailored for AI/ML, networking, and e-mobility, targeting explosive infrastructure growth.

Sentiment:

🐃Bullish

HPE’s AI-and-networking push lifts profit and guidance despite a revenue miss that keeps traders cautious.

Earnings beat: Adjusted EPS of $0.62 beat Street estimates, signaling improved profitability driven by margin expansion and cost controls, which management said reflect portfolio simplification and structural efficiencies.
Revenue miss but momentum: Q4 revenue came in around $9.67–9.68B versus higher consensus, yet HPE posted record quarterly gross profit and an annualized revenue run‑rate up sharply — evidence that subscription and AI‑related recurring revenue is growing even if product timing weighed on the quarter.
Raised FY26 outlook: HPE lifted its FY26 adjusted EPS range and modestly raised free‑cash‑flow expectations after closing the Juniper acquisition and accelerating networking and AI/cloud businesses, a constructive signal for medium‑term earnings power despite mixed segment trends (Networking strong, Server & Hybrid Cloud softer).

Sentiment:

🌋Volatile

Microchip Technology Lifts Q3 Guidance to High End, Fuels Rally on AI Chip Momentum

Raised Q3 FY2026 sales guidance to $1.149B from prior $1.109B–$1.149B range, signaling robust demand recovery via a nine-point execution plan.
Sequential bookings jumped 10% with book-to-bill at 1.06, reflecting improved visibility and customer confidence in Microchip's offerings.
Launched ultra-low-power PAC1711 and PAC1811 digital power monitors tailored for AI/ML, networking, and e-mobility, targeting explosive infrastructure growth.

Sentiment:

🐃Bullish

HPE’s AI-and-networking push lifts profit and guidance despite a revenue miss that keeps traders cautious.

Earnings beat: Adjusted EPS of $0.62 beat Street estimates, signaling improved profitability driven by margin expansion and cost controls, which management said reflect portfolio simplification and structural efficiencies.
Revenue miss but momentum: Q4 revenue came in around $9.67–9.68B versus higher consensus, yet HPE posted record quarterly gross profit and an annualized revenue run‑rate up sharply — evidence that subscription and AI‑related recurring revenue is growing even if product timing weighed on the quarter.
Raised FY26 outlook: HPE lifted its FY26 adjusted EPS range and modestly raised free‑cash‑flow expectations after closing the Juniper acquisition and accelerating networking and AI/cloud businesses, a constructive signal for medium‑term earnings power despite mixed segment trends (Networking strong, Server & Hybrid Cloud softer).

Sentiment:

🌋Volatile

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

Investment Analysis