MCHP vs ADI Stock Comparison: AI Score, Valuation, Performance and Upside
Microchip Technology and Analog Devices both serve industrial and automotive semiconductor markets with complementary product lines — Microchip's microcontrollers vs ADI's analog/mixed-signal ICs. Both suffered from similar industrial inventory corrections. ADI is generally regarded as the higher-quality analog franchise; Microchip is the MCU volume leader with a more aggressive dividend track record. Both are recovery plays on industrial semiconductor demand normalization.
MCHP vs ADI is the MCU and embedded control market leader with aggressive dividend growth through semiconductor cycles (Microchip) versus the premier analog signal chain semiconductor company with precision converters, amplifiers, and 5G infrastructure exposure (Analog Devices) — embedded microcontroller volume vs high-precision analog signal chain quality.
ADI holds the edge across 3 of 5 key metrics in this comparison. ADI has delivered stronger 1-year price return (+48.57% vs +9.88%), though MCHP has the better forward P/E setup (15.98x vs 23.17x for ADI). ADI leads on both revenue growth (39.60%) and operating margin (39.50%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for MCHP (+48.96%) than for ADI (+24.27%).
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.
- prefer microcontroller market leadership with deep embedded software ecosystems creating industrial design-in stickiness across motor control, appliances, and IoT
- value Microchip's dividend growth track record as an income-generating semiconductor holding through cyclical downturns
- want aerospace and defense semiconductor exposure via Microsemi acquisition for higher-margin, defense-program-driven revenue
- are comfortable with industrial inventory correction duration, acquisition-driven debt levels, and MCU market competition from Renesas and STMicro
- prefer the premier analog signal chain semiconductor brand — ADI's precision converters are designed into high-reliability test, measurement, and industrial equipment with decades-long product lifecycles
- value 5G infrastructure analog front-end exposure as a structural growth driver beyond industrial cycle recovery
- want the highest-quality analog semiconductor franchise with Maxim integration expanding power and automotive analog breadth
- are comfortable with industrial analog inventory correction timelines, 5G carrier capex cycle dependence, and premium valuation for analog quality
| Metric | MCHP | ADI |
|---|---|---|
| AI scorei | 54.0 | 65.0 |
| AI ranki | #315 | #81 |
| Latest closei | $70.82 | $362.65 |
| 1M returni | -9.43% | -3.71% |
| 6M returni | +11.90% | +16.82% |
| 1Y returni | +9.88% | +48.57% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | MCHP | ADI |
|---|---|---|
| 1Y ago | $10.77K (+7.7%) started 2025-09-17 | $14.72K (+47.2%) started 2025-09-17 |
| 5Y ago | $10.41K (+4.1%) started 2021-09-20 | $24.3K (+143.0%) started 2021-09-20 |
| 10Y ago | $31.81K (+218.1%) started 2016-09-19 | $81.69K (+716.9%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | MCHP | ADI |
|---|---|---|
| Market capi | $39.6B | $183.54B |
| Trailing P/Ei | 107.25 | 45.04 |
| Forward P/Ei | 15.98 | 23.17 |
| Price/Salesi | 8.00 | 11.23 |
| EV/Revenuei | 8.73 | 13.71 |
| Analyst targeti | $108.64 | $470.72 |
| Target upsidei | +48.96% | +24.27% |
| Metric | MCHP | ADI |
|---|---|---|
| Revenue growthi | 38.00% | 39.60% |
| Earnings growthi | -81.60% | 163.50% |
| EPS growthi | -81.60% | +163.50% |
| FCF margini | +26.64% | +29.88% |
| Operating margini | 23.96% | 39.50% |
| Profit margini | 9.34% | 29.79% |
| ROIC proxyi | 7.19% | 12.23% |
| Return on equityi | 7.19% | 12.23% |
| Dividend yieldi | 2.50% | 1.16% |
| Payout ratioi | 267.65% | 49.64% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 1.74 | 1.21 |
| Debt/equityi | 83.69 | 27.31 |
| Current ratioi | 1.92 | 1.25 |
| Quick ratioi | 0.96 | 0.83 |
Over the past year, MCHP and ADI have moved strongly in the same direction (correlation of 0.80), 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 | MCHP | ADI |
|---|---|---|---|
| 1Y | Growthi | +7.66% | +47.23% |
| CAGRi | +7.67% | +47.31% | |
| Volatilityi | 49.94% | 35.98% | |
| Sharpe ratioi | 0.30 | 1.14 | |
| Sortino ratioi | 0.48 | 1.69 | |
| Max drawdowni | 32.38% | 20.68% | |
| Current drawdowni | 31.19% | 18.59% | |
| Avg drawdowni | 11.48% | 6.62% | |
| Ulcer Indexi | 14.96% | 9.10% | |
| Max daily dropi | 9.20% | 8.58% | |
| Max wkly dropi | 16.06% | 12.05% | |
| 5Y | Growthi | -3.07% | +127.80% |
| CAGRi | -0.62% | +17.93% | |
| Volatilityi | 45.76% | 34.05% | |
| Sharpe ratioi | 0.11 | 0.52 | |
| Sortino ratioi | 0.17 | 0.78 | |
| Max drawdowni | 63.77% | 32.20% | |
| Current drawdowni | 31.19% | 18.59% | |
| Avg drawdowni | 20.39% | 8.64% | |
| Ulcer Indexi | 24.36% | 10.72% | |
| Max daily dropi | 16.80% | 9.37% | |
| Max wkly dropi | 27.13% | 18.34% | |
| 10Y | Growthi | +171.17% | +583.84% |
| CAGRi | +10.50% | +21.21% | |
| Volatilityi | 42.71% | 33.18% | |
| Sharpe ratioi | 0.34 | 0.61 | |
| Sortino ratioi | 0.50 | 0.89 | |
| Max drawdowni | 63.77% | 33.62% | |
| Current drawdowni | 31.19% | 18.59% | |
| Avg drawdowni | 14.81% | 7.21% | |
| Ulcer Indexi | 19.55% | 9.44% | |
| Max daily dropi | 20.29% | 16.61% | |
| Max wkly dropi | 29.72% | 18.34% |
| Category | MCHP | ADI |
|---|---|---|
| Company | Microchip Technology Incorporated | Analog Devices, Inc. |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| Core business | Microchip Technology designs and manufactures microcontrollers (MCUs), microprocessors (MPUs), and analog semiconductors for embedded control applications. Microchip's MCUs are the 'brains' of embedded systems — controlling motors, industrial equipment, appliances, automotive systems, and IoT devices. Microchip serves industrial, automotive, aerospace/defense, and consumer markets. Microchip grew significantly through acquisitions including Microsemi (aerospace/defense analog) and Atmel (AVR microcontrollers). Microchip is known as an aggressive dividend payer. | Analog Devices (ADI) is a leader in analog, mixed-signal, and digital signal processing (DSP) semiconductors for industrial, communications, automotive, and healthcare applications. ADI acquired Maxim Integrated in 2021, significantly expanding its analog portfolio. ADI's converters (ADCs and DACs), amplifiers, and power management ICs are used in test and measurement equipment, factory automation, 5G base stations, and medical devices. ADI is regarded as one of the highest-quality analog semiconductor companies with exceptional engineering talent. |
| Investor focus | Investors track MCU market share vs Renesas and STMicroelectronics, industrial end market demand recovery, and Microchip's dividend growth track record. | Investors track industrial analog demand recovery, 5G infrastructure buildout, ADI's converter and amplifier market share, and Maxim integration synergies. |
- MCU market leadership with deep embedded software ecosystem — Microchip's MPLAB IDE and extensive device driver libraries create stickiness in industrial design-ins
- Aerospace and defense exposure via Microsemi acquisition provides higher-margin, defense-cycle-resistant revenue
- Consistent dividend growth history — Microchip has raised its dividend for 20+ consecutive quarters, appealing to income-focused semiconductor investors
- Premier analog engineering brand — ADI's precision converters and signal chain components are designed into high-reliability, long-lifecycle industrial and measurement applications
- 5G infrastructure exposure through base station analog front-end components — a structural growth driver as 5G networks expand globally
- Maxim acquisition added power management and auto-analog capabilities, strengthening ADI's automotive and IoT product breadth
- MCU inventory correction has been severe — industrial distributors over-ordered during 2021–2022 supply constraints and are still working down excess inventory
- Microchip's acquisition-heavy growth strategy added significant debt that must be managed through semiconductor downturns
- STMicro and Renesas compete aggressively for MCU design-wins in automotive and industrial markets
- Industrial analog inventory correction — like Microchip, ADI faces prolonged industrial end market inventory destocking from 2021–2022 over-ordering
- 5G infrastructure investment cycles depend on carrier spending — telecom capex cycles create lumpy ADI communication revenue
- Analog semiconductor cycles are long — inventory corrections can take 6–8 quarters to fully normalize
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