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ADI vs MCHP
Which Stock Would AI Choose? Analog Devices, Inc. (ADI) vs. Microchip Technology Incorporated (MCHP) Stock Comparison
Key Takeaways
- Analog Devices (ADI) posted record FY2023 revenue of $12.3 B but saw Q4 sales dip 40% YoY, while Microchip (MCHP) reported FY2024 revenue of $7.6 B, down 9.5% YoY.
- Both companies face inventory corrections, yet ADI’s diversified analog‑mix‑digital portfolio offers higher operating margins (≈41% Non‑GAAP) versus Microchip’s 44% Non‑GAAP margin in Q4 2024.
- Microchip’s recent acquisitions (Neuronix AI Labs, VSI) expand AI‑edge and automotive networking, whereas ADI is leveraging its mixed‑signal foundation for automotive and industrial IoT.
- Short‑term sentiment favors ADI’s rebound potential after a steep price decline, while MCHP’s cash‑return program and dividend hikes support income‑focused investors.
- Tickeron’s AI bots currently rank ADI slightly higher on trend consistency, but Microchip’s total‑system‑solution strategy narrows the gap.
Introduction
Analog Devices (ADI) and Microchip Technology (MCHP) are leading semiconductor suppliers whose products power industrial automation, automotive systems, and the growing intelligent‑edge market. Both stocks have experienced sharp revenue swings driven by macro‑level inventory adjustments and a slowdown in end‑customer demand. This comparison is aimed at traders seeking short‑term momentum signals and investors evaluating long‑term growth drivers in the broader semiconductor cycle.
ADI Overview and Recent Performance
Analog Devices, Inc. (ADI) reported fiscal 2023 record revenue of $12.3 billion, driven by double‑digit growth in its Industrial and Automotive segments. However, Q4 2023 sales fell to $2.7 billion—a 40.6% YoY decline—as customers continued to digest excess inventory. The company’s GAAP earnings per share (EPS) narrowed to $0.28, while Non‑GAAP EPS fell to $0.57, reflecting amortization of acquired intangibles from the Maxim acquisition. Gross margins held at 60.3% (Non‑GAAP) and operating margins at 41% (Non‑GAAP), underscoring a resilient cost structure despite lower top‑line volume.
Management highlighted a “return to normalized growth” in the second half of FY2024, citing diversified product lines across analog, digital, and mixed‑signal solutions. ADI also announced continued investment in automotive radar and power‑management ICs, positioning the company to capture secular trends such as electric‑vehicle (EV) electrification and industrial automation. The stock has rebounded from a year‑low in early 2024, gaining roughly 12% over the past eleven months, while analysts note that a further bounce could occur if inventory levels normalize.
MCHP Overview and Recent Performance
Microchip Technology Incorporated (MCHP) posted FY2024 revenue of $7.634 billion, down 9.5% YoY, with Q4 2024 net sales of $1.326 billion (‑40.6% YoY). Non‑GAAP operating margin reached 43.9%, and Non‑GAAP EPS was $0.57. The company returned $629.9 million to shareholders in the March quarter, including a record dividend of $0.452 per share.
Recent quarters have shown a sequential decline in sales, driven by an ongoing inventory correction in industrial and automotive markets, especially in Europe. Nevertheless, Microchip’s Total System Solutions strategy—including AI‑enabled edge products, Silicon‑Carbide power drivers, and high‑speed Ethernet switches—has sustained design‑win momentum. Acquisitions of Neuronix AI Labs and VSI Co. in Q1 FY2025 broadened the portfolio into AI‑edge inference and automotive networking, while a partnership with TSMC’s Japan Advanced Semiconductor Manufacturing (JASM) secures specialized 40 nm capacity for future growth.
Cash flow remains strong; free cash flow for Q4 2024 was $389.9 million, and the company’s balance sheet shows $315 million in cash and short‑term investments. Guidance for Q1 FY2025 projects net sales of $1.22‑$1.26 billion, indicating expectations of a bottom‑of‑the‑cycle in the June quarter and a return to sequential growth in the September quarter.
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Head-to-Head Comparison
- Business Model: ADI focuses on high‑margin analog and mixed‑signal solutions with deep expertise in signal‑chain components. MCHP offers a broader embedded‑control portfolio, including microcontrollers, FPGAs, and power management ICs, emphasizing total‑system integration.
- Growth Drivers: ADI’s automotive radar, industrial IoT, and healthcare sensing are primary secular trends. MCHP’s AI‑edge, automotive networking (ASA Motion Link), and data‑center PCIe/CXL solutions target fast‑growing markets.
- Recent Momentum: ADI showed a stronger price rebound after a steep decline, whereas MCHP’s revenue trajectory remains downward but is supported by aggressive dividend policy and share‑repurchase activity.
- Risk Factors: Both face inventory corrections and macro‑economic headwinds. ADI’s exposure to automotive cycles could amplify volatility; MCHP’s reliance on foundry capacity and European industrial demand adds geopolitical risk.
- Sector Exposure: ADI leans heavily on industrial & automotive (≈55% of sales), while MCHP derives roughly equal revenue from industrial, automotive, and consumer sectors, offering slightly more diversification.
- Market Sentiment: Analyst narratives currently favor ADI’s potential upside post‑inventory correction, whereas MCHP is viewed as a stable cash‑generator with attractive dividend yield.
Tickeron AI Verdict
Based on observable factors—trend consistency, margin stability, and near‑term catalysts—Tickeron’s AI models assign a marginally higher score to Analog Devices (ADI). The AI evaluates ADI’s stronger rebound in price, higher Non‑GAAP operating margin, and clear path to growth via automotive and industrial IoT. However, Microchip (MCHP) remains a close contender due to its robust cash flow, dividend growth, and strategic acquisitions that broaden its addressable market. Investors may therefore consider a blended approach, weighting ADI for upside potential and MCHP for income stability.
Disclaimer
“The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.” Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ADI is a StrongBuy and MCHP is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ADI’s FA Score shows that 1 FA rating(s) are green whileMCHP’s FA Score has 0 green FA rating(s).
- ADI’s FA Score: 1 green, 4 red.
- MCHP’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ADI’s TA Score shows that 5 TA indicator(s) are bullish while MCHP’s TA Score has 4 bullish TA indicator(s).
- ADI’s TA Score: 5 bullish, 3 bearish.
- MCHP’s TA Score: 4 bullish, 4 bearish.
Price Growth
ADI (@Semiconductors) experienced а +4.09% price change this week, while MCHP (@Semiconductors) price change was +7.81% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +4.34%. For the same industry, the average monthly price growth was +5.81%, and the average quarterly price growth was +92.59%.
Reported Earning Dates
ADI is expected to report earnings on Aug 26, 2026.
MCHP is expected to report earnings on Aug 04, 2026.
Industries' Descriptions
@Semiconductors (+4.34% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| ADI | MCHP | ADI / MCHP | |
| Capitalization | 204B | 51.6B | 395% |
| EBITDA | 6.23B | 1.18B | 529% |
| Gain YTD | 54.958 | 51.101 | 108% |
| P/E Ratio | 62.17 | 432.91 | 14% |
| Revenue | 12.7B | 4.71B | 269% |
| Total Cash | 3.44B | 240M | 1,433% |
| Total Debt | 8.69B | 5.54B | 157% |
ADI | MCHP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 15 | 64 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 56 Fair valued | 89 Overvalued | |
PROFIT vs RISK RATING 1..100 | 6 | 69 | |
SMR RATING 1..100 | 73 | 91 | |
PRICE GROWTH RATING 1..100 | 39 | 39 | |
P/E GROWTH RATING 1..100 | 53 | 57 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ADI's Valuation (56) in the Semiconductors industry is somewhat better than the same rating for MCHP (89). This means that ADI’s stock grew somewhat faster than MCHP’s over the last 12 months.
ADI's Profit vs Risk Rating (6) in the Semiconductors industry is somewhat better than the same rating for MCHP (69). This means that ADI’s stock grew somewhat faster than MCHP’s over the last 12 months.
ADI's SMR Rating (73) in the Semiconductors industry is in the same range as MCHP (91). This means that ADI’s stock grew similarly to MCHP’s over the last 12 months.
ADI's Price Growth Rating (39) in the Semiconductors industry is in the same range as MCHP (39). This means that ADI’s stock grew similarly to MCHP’s over the last 12 months.
ADI's P/E Growth Rating (53) in the Semiconductors industry is in the same range as MCHP (57). This means that ADI’s stock grew similarly to MCHP’s over the last 12 months.
| ADI | MCHP | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 65% | 2 days ago 90% |
| Stochastic ODDS (%) | 2 days ago 63% | 2 days ago 71% |
| Momentum ODDS (%) | 2 days ago 63% | 2 days ago 65% |
| MACD ODDS (%) | 2 days ago 63% | 2 days ago 68% |
| TrendWeek ODDS (%) | 2 days ago 63% | 2 days ago 68% |
| TrendMonth ODDS (%) | 2 days ago 60% | 2 days ago 74% |
| Advances ODDS (%) | 2 days ago 62% | 2 days ago 68% |
| Declines ODDS (%) | 9 days ago 54% | 9 days ago 73% |
| BollingerBands ODDS (%) | 2 days ago 64% | 2 days ago 81% |
| Aroon ODDS (%) | 2 days ago 65% | 2 days ago 77% |
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ADI and
Correlation & Price change
A.I.dvisor indicates that over the last year, ADI has been closely correlated with LRCX. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if ADI jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To ADI | 1D Price Change % | ||
|---|---|---|---|---|
| ADI | 100% | +1.37% | ||
| LRCX - ADI | 79% Closely correlated | +1.18% | ||
| KLAC - ADI | 79% Closely correlated | +5.55% | ||
| ENTG - ADI | 78% Closely correlated | +3.86% | ||
| KLIC - ADI | 77% Closely correlated | +1.17% | ||
| MCHP - ADI | 76% Closely correlated | +2.47% | ||
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