AVGO vs MCHP Stock Comparison: AI Score, Valuation, Performance and Upside
Broadcom and Microchip Technology are both semiconductor companies, but Broadcom is a large, diversified company combining custom AI networking chips with enterprise infrastructure software following its VMware acquisition, while Microchip Technology is a more focused specialist in embedded microcontrollers and analog chips serving industrial, automotive, and consumer electronics markets.
Broadcom offers diversified exposure to AI networking demand and enterprise software following its acquisition strategy, while Microchip Technology offers more focused exposure to embedded microcontroller and analog chip demand across industrial and automotive markets. Consider whether you prefer Broadcom's AI-and-software diversification or Microchip's focused embedded chip specialization.
MCHP holds the edge across 3 of 5 key metrics in this comparison. MCHP leads on both 1-year return (+13.88%) and forward P/E quality (15.98x vs 18.67x for AVGO), a relatively favorable combination of momentum and valuation. AVGO leads on both revenue growth (85.50%) and operating margin (54.31%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies similar upside for both: +46.92% for AVGO and +48.96% for MCHP.
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want exposure to custom AI accelerator ASIC demand from major cloud hyperscaler customers
- Value Broadcom's diversified revenue combining semiconductors with high-margin infrastructure software
- Believe Broadcom's disciplined acquisition strategy will continue expanding its technology portfolio
- Are comfortable with customer concentration risk in exchange for AI infrastructure growth exposure
- Want focused exposure to embedded microcontroller and analog chip demand across industrial and automotive markets
- Value Microchip's broad, diversified customer base reducing single-market dependency
- Prefer a more focused, less complex semiconductor business over a diversified conglomerate
- Are comfortable with industrial and automotive end-market cyclicality in exchange for diversified design-in revenue
| Metric | AVGO | MCHP |
|---|---|---|
| AI scorei | 76.3 | 53.6 |
| AI ranki | #17 | #272 |
| Latest closei | $344.33 | $74.26 |
| 1M returni | +1.49% | +3.87% |
| 3M returni | -8.04% | -9.08% |
| 6M returni | -13.59% | -3.40% |
| 1Y returni | -1.99% | +13.88% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AVGO | MCHP |
|---|---|---|
| 1Y ago | $9.72K (-2.8%) started 2025-10-16 | $11.36K (+13.6%) started 2025-10-16 |
| 5Y ago | $80.01K (+700.1%) started 2021-10-18 | $11.57K (+15.7%) started 2021-10-18 |
| 10Y ago | $349.75K (+3397.5%) started 2016-10-17 | $34.43K (+244.3%) started 2016-10-17 |
Hypothetical — past performance does not guarantee future results.
| Metric | AVGO | MCHP |
|---|---|---|
| Market capi | $1.73T | $39.6B |
| Trailing P/Ei | 46.05 | 107.25 |
| Forward P/Ei | 18.67 | 15.98 |
| Price/Salesi | N/A | 8.00 |
| EV/Revenuei | 19.79 | 8.73 |
| Analyst targeti | $531.85 | $108.64 |
| Target upsidei | +46.92% | +48.96% |
| Metric | AVGO | MCHP |
|---|---|---|
| Revenue growthi | 85.50% | 38.00% |
| Earnings growthi | 215.30% | -81.60% |
| EPS growthi | +215.30% | -81.60% |
| FCF margini | +34.34% | +26.64% |
| Operating margini | 54.31% | 23.96% |
| Profit margini | 42.94% | 9.34% |
| ROIC proxyi | 44.25% | 7.19% |
| Return on equityi | 44.25% | 7.19% |
| Dividend yieldi | 0.72% | 2.50% |
| Payout ratioi | 32.44% | 267.65% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 1.46 | 1.74 |
| Debt/equityi | 59.60 | 83.69 |
| Current ratioi | 2.50 | 1.92 |
| Quick ratioi | 2.15 | 0.96 |
Over the past year, AVGO and MCHP have moved weakly in the same direction (correlation of 0.38), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | AVGO | MCHP |
|---|---|---|---|
| 1Y | Growthi | -2.77% | +13.63% |
| CAGRi | -2.78% | +13.66% | |
| Volatilityi | 45.41% | 49.72% | |
| Sharpe ratioi | 0.07 | 0.41 | |
| Sortino ratioi | 0.09 | 0.66 | |
| Max drawdowni | 29.55% | 32.38% | |
| Current drawdowni | 28.50% | 27.85% | |
| Avg drawdowni | 15.61% | 13.43% | |
| Ulcer Indexi | 17.94% | 16.69% | |
| Max daily dropi | 12.59% | 9.20% | |
| Max wkly dropi | 22.35% | 16.06% | |
| 5Y | Growthi | +638.77% | +7.76% |
| CAGRi | +49.24% | +1.51% | |
| Volatilityi | 44.47% | 45.84% | |
| Sharpe ratioi | 1.02 | 0.16 | |
| Sortino ratioi | 1.60 | 0.24 | |
| Max drawdowni | 41.15% | 63.77% | |
| Current drawdowni | 28.50% | 27.85% | |
| Avg drawdowni | 10.96% | 20.59% | |
| Ulcer Indexi | 14.23% | 24.53% | |
| Max daily dropi | 17.40% | 16.80% | |
| Max wkly dropi | 22.35% | 27.13% | |
| 10Y | Growthi | +2526.27% | +193.49% |
| CAGRi | +38.67% | +11.37% | |
| Volatilityi | 39.96% | 42.83% | |
| Sharpe ratioi | 0.91 | 0.36 | |
| Sortino ratioi | 1.36 | 0.53 | |
| Max drawdowni | 48.30% | 63.77% | |
| Current drawdowni | 28.50% | 27.85% | |
| Avg drawdowni | 8.81% | 14.99% | |
| Ulcer Indexi | 12.13% | 19.68% | |
| Max daily dropi | 19.91% | 20.29% | |
| Max wkly dropi | 31.75% | 29.72% |
| Category | AVGO | MCHP |
|---|---|---|
| Company | Broadcom Inc. | Microchip Technology Incorporated |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| Core business | A diversified semiconductor and infrastructure software company, providing networking chips, custom AI accelerator ASICs, and enterprise software following its VMware acquisition, serving cloud, networking, and enterprise customers. | A semiconductor company specializing in embedded microcontrollers, analog, and mixed-signal chips used across a broad range of industrial, automotive, and consumer electronics applications. |
| Investor focus | Custom AI ASIC revenue growth, networking chip demand from cloud hyperscalers, VMware software integration and margin contribution, and capital return. | Microcontroller and analog chip demand across industrial and automotive end markets, inventory correction cycles, and margin recovery trends. |
- Strong position in custom AI accelerator ASICs designed for major cloud hyperscaler customers building their own AI chips
- Diversified revenue combining semiconductors with high-margin infrastructure software following the VMware acquisition
- Track record of successful, disciplined acquisitions that expand its technology and software portfolio
- Broad, diversified customer base across industrial, automotive, and consumer electronics reduces single-market dependency
- Long product life cycles in embedded microcontrollers provide durable, recurring design-in revenue
- More focused, less complex business model than Broadcom's diversified semiconductor and software conglomerate
- Customer concentration risk in both semiconductor and software segments among a relatively small number of large customers
- Integration execution risk from large acquisitions like VMware, and future acquisition-driven growth strategy
- Semiconductor segment remains exposed to cyclicality in networking and broader chip demand
- Smaller scale and less diversification into high-growth AI infrastructure than Broadcom's networking and ASIC business
- Industrial and automotive end markets can be cyclical, with periods of inventory correction affecting near-term results
- Does not have exposure to the enterprise software revenue diversification that Broadcom gained through VMware
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