MCHP vs ADI Stock Comparison: AI Score, Valuation, Performance and Upside
MCHP (Microchip Technology) and ADI (Analog Devices) are both analog/mixed-signal semiconductor leaders with significant industrial exposure — Microchip leads in 8/16/32-bit microcontrollers (PIC, AVR families) plus FPGA/defense from Microsemi, while Analog Devices leads in precision data converters, signal chain components, and analog ICs for industrial, automotive, and 5G applications. Both faced severe industrial inventory corrections in 2023 and serve similar customer bases with complementary products.
MCHP vs ADI is microcontroller ecosystem depth (Microchip's embedded processing with PIC/AVR loyalty plus FPGA/aerospace from Microsemi) versus precision analog excellence (Analog Devices' data converter and signal chain leadership serving industrial and healthcare where performance matters more than cost) — embedded computing versus signal measurement within the same industrial customer base.
ADI holds the edge across 3 of 5 key metrics in this comparison. ADI has delivered stronger 1-year price return (+47.23% vs +7.66%), 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.
- Want microcontroller market exposure with a long dividend growth track record — Microchip has raised its dividend for 30+ consecutive quarters while maintaining the high gross margins typical of microcontroller market leaders
- Value the PIC and AVR microcontroller embedded ecosystem with multi-decade installed bases and significant switching costs that make Microchip designs sticky once qualified in industrial products
- See the Microsemi FPGA and military/aerospace business as diversification into long-lifecycle, non-commodity defense and space applications with strong regulatory barriers to entry
- Want precision analog semiconductor leadership across data converters, amplifiers, and signal chain components specified by name in industrial, healthcare, and defense applications
- Value Analog Devices' diversified end market mix spanning industrial automation, automotive, 5G base stations, and healthcare for relative resilience versus more consumer-concentrated analog competitors
- Prefer ADI's industrial depth with premium pricing in high-performance analog where engineers specify ADI parts for specific performance characteristics, creating strong customer loyalty
| 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 | +7.66% | +47.23% |
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 | $10.69K (+6.9%) started 2025-09-18 | $14.56K (+45.6%) started 2025-09-18 |
| 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 | +6.88% | +45.61% |
| CAGRi | +6.89% | +45.67% | |
| Volatilityi | 49.94% | 35.96% | |
| Sharpe ratioi | 0.29 | 1.10 | |
| Sortino ratioi | 0.46 | 1.64 | |
| Max drawdowni | 32.38% | 20.68% | |
| Current drawdowni | 31.19% | 18.59% | |
| Avg drawdowni | 11.61% | 6.69% | |
| Ulcer Indexi | 15.09% | 9.18% | |
| Max daily dropi | 9.20% | 8.58% | |
| Max wkly dropi | 16.06% | 12.05% | |
| 5Y | Growthi | -3.07% | +127.80% |
| CAGRi | -0.62% | +17.92% | |
| Volatilityi | 45.75% | 34.04% | |
| 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 | 20.40% | 8.65% | |
| 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 | +10.49% | +21.21% | |
| Volatilityi | 42.70% | 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 | 14.82% | 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 is a leading supplier of 8-bit, 16-bit, and 32-bit microcontrollers (PIC and AVR families), digital signal controllers, FPGAs (through Microsemi acquisition), wired and wireless connectivity chips, and development tools. Microchip serves industrial automation, automotive, consumer electronics, aerospace, and IoT applications with embedded processing solutions. | Analog Devices is a global analog, mixed-signal, and digital signal processing (DSP) semiconductor company — providing data converters (ADC/DAC), amplifiers, power management, radio frequency (RF) components, and sensor signal conditioning chips for industrial automation, automotive, healthcare monitoring, 5G communications, and aerospace/defense. |
| Investor focus | Investors track Microchip's revenue across microcontroller, analog, and FPGA segments, inventory correction cycles in industrial and consumer end markets, gross margin (typically 65%+), dividend growth track record (Microchip has raised its dividend for 30+ consecutive quarters), and debt repayment progress after the Microsemi acquisition. | Investors track Analog Devices' industrial revenue (the largest segment), automotive electrification content, 5G infrastructure exposure, gross margins (consistently above 60%), the Maxim Integrated acquisition synergies, and the diversified end market mix that provides relative resilience versus more consumer-exposed semiconductor companies. |
- PIC microcontroller ecosystem dominance — Microchip's PIC and AVR families have multi-decade installed bases with deep embedded software libraries; once engineers design around Microchip MCUs, switching requires significant re-engineering effort
- Long dividend growth streak — Microchip has increased its dividend for 30+ consecutive quarters, appealing to income investors within the semiconductor sector
- FPGA and military/aerospace market from Microsemi — the Microsemi acquisition added FPGAs, timing chips, and radiation-hardened components serving defense and aerospace customers with very long product lifetimes
- Precision analog leadership — Analog Devices' data converters, amplifiers, and signal chain components are specified by name in industrial and healthcare designs where the specific ADI part cannot be easily substituted
- Industrial end market depth — factory automation, process control, healthcare instrumentation, and test/measurement customers value ADI's precision performance over cost, supporting premium pricing and high margins
- 5G infrastructure and defense diversification — ADI's beamforming chips in 5G base station antennas and precision timing in defense systems provide revenue streams with different cyclical patterns than consumer electronics
- Microchip carries significant debt from the $8.4B Microsemi acquisition — debt repayment has been a priority, constraining flexibility for additional capital allocation
- Inventory correction sensitivity — Microchip's industrial and consumer end markets experienced severe inventory corrections in 2023; distributor destocking can create rapid revenue shortfalls
- Competition from STMicroelectronics (STM32), Renesas, and NXP in 32-bit microcontrollers where market share is more contested than Microchip's entrenched 8/16-bit positions
- Industrial semiconductor correction — ADI's heavy industrial exposure made it susceptible to the 2023 inventory correction as factory automation customers worked through excess chip inventory
- Maxim Integrated acquisition integration — the $21B Maxim deal (2021) expanded ADI's power management and automotive portfolio but also added integration complexity and dilutive shares
- Analog semiconductor is not a winner-take-all market — many precision analog applications have second-source requirements, limiting the pricing power in some market segments
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