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 Surges on Wells Fargo Upgrade as Chip Sector Rebounds with AI Momentum.
- Wells Fargo lifted its rating from Equal-Weight to Overweight and raised the price target from $1100 to $1125, highlighting easier comps that could spotlight robust growth.
- Recent confirmation of a $1.56 per share quarterly dividend payable in January 2026 signals management's confidence in aligning capital returns with AI and auto-driven expansion.
- Broader AI hype and CES rally bolster MPWR's narrative, though short ordering cycles pose volatility risks as the company gears up for Q4 results on February 5.
Microchip Tech Signals Stronger Recovery with Raised Q3 Guidance and Fresh Product Launches
- Net sales guidance hiked well above original $1.109B-$1.149B range, driven by strong December bookings and improved March backlog for sustained demand.
- Substantial internal inventory reductions and March factory ramps to lower under-utilization charges and write-offs, boosting margins.
- New January launches like 600V gate drivers and PolarFire FPGA video solutions target high-growth power, vision, and defense sectors.
MPWR Surges on Wells Fargo Upgrade as Chip Sector Rebounds with AI Momentum.
- Wells Fargo lifted its rating from Equal-Weight to Overweight and raised the price target from $1100 to $1125, highlighting easier comps that could spotlight robust growth.
- Recent confirmation of a $1.56 per share quarterly dividend payable in January 2026 signals management's confidence in aligning capital returns with AI and auto-driven expansion.
- Broader AI hype and CES rally bolster MPWR's narrative, though short ordering cycles pose volatility risks as the company gears up for Q4 results on February 5.
Microchip Tech Signals Stronger Recovery with Raised Q3 Guidance and Fresh Product Launches
- Net sales guidance hiked well above original $1.109B-$1.149B range, driven by strong December bookings and improved March backlog for sustained demand.
- Substantial internal inventory reductions and March factory ramps to lower under-utilization charges and write-offs, boosting margins.
- New January launches like 600V gate drivers and PolarFire FPGA video solutions target high-growth power, vision, and defense sectors.
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
The PC Market's Surprising Comeback: Why Hardware Suppliers Are Thriving
The PC market is surging, driven by AI-powered devices. Discover how hardware suppliers like Super Micro, Intel, and Dell are thriving. Invest in this tech recovery with Nemo.
Aimee Silverwood | Financial Analyst
August 14, 2025
Related Market Insights
The PC Market's Surprising Comeback: Why Hardware Suppliers Are Thriving
The PC market is surging, driven by AI-powered devices. Discover how hardware suppliers like Super Micro, Intel, and Dell are thriving. Invest in this tech recovery with Nemo.
Aimee Silverwood | Financial Analyst
August 14, 2025
Monolithic Power Systems (MPWR) Next Earnings Date
Monolithic Power Systems (MPWR) is scheduled to report its next earnings on February 5, 2026, after market close. This release will cover the fourth quarter and full year 2025, including results for the fiscal quarter ending December 2025. A conference call is set for 2:00 PM PT to discuss the outcomes.
Microchip Technology (MCHP) Next Earnings Date
Microchip Technology (MCHP) is scheduled to report its next earnings on February 5, 2026. This release will cover the Q3 FY26 financial results, with a conference call webcast at 5:00 PM Eastern Time. The date aligns with the company's IR calendar and consensus estimates from multiple financial platforms.
Monolithic Power Systems (MPWR) Next Earnings Date
Monolithic Power Systems (MPWR) is scheduled to report its next earnings on February 5, 2026, after market close. This release will cover the fourth quarter and full year 2025, including results for the fiscal quarter ending December 2025. A conference call is set for 2:00 PM PT to discuss the outcomes.
Microchip Technology (MCHP) Next Earnings Date
Microchip Technology (MCHP) is scheduled to report its next earnings on February 5, 2026. This release will cover the Q3 FY26 financial results, with a conference call webcast at 5:00 PM Eastern Time. The date aligns with the company's IR calendar and consensus estimates from multiple financial platforms.
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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