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ADI vs MCHP
Which Stock Would AI Choose? Analog Devices (ADI) vs. Microchip Technology (MCHP) Stock Comparison
Key Takeaways
- Both ADI and MCHP have posted strong year-to-date gains exceeding 49% and 55%, respectively, fueled by semiconductor demand in AI and industrial applications.
- ADI boasts a larger market cap of approximately $198 billion compared to MCHP's $53 billion, reflecting its broader scale in analog semiconductors.
- Recent performance shows MCHP surging over 40% in the past month amid earnings anticipation, while ADI has climbed around 25% on AI-driven revenue growth.
- Forward P/E ratios stand at 34x for ADI and 37x for MCHP, indicating premium valuations in the analog and mixed-signal sector.
- Both stocks benefit from industrial and communications end-market strength, but ADI shows superior cash flow generation at 39% of revenue.
Introduction
Analog Devices (ADI) and Microchip Technology (MCHP) are key players in the analog and mixed-signal semiconductor space, powering applications from industrial automation to data centers and automotive systems. This comparison is particularly relevant for traders eyeing semiconductor sector momentum amid AI infrastructure buildouts and industrial recovery. Investors seeking exposure to high-growth end markets, such as communications and embedded controls, may find insights into relative performance, valuation trade-offs, and market positioning valuable in the current environment of robust demand and elevated valuations.
ADI Overview and Recent Performance
Analog Devices (ADI), a leading designer of high-performance analog semiconductors including data converters and power management ICs (integrated circuits), serves diverse markets like industrial, automotive, and communications. In recent market activity, ADI shares have risen approximately 25% over the past month, contributing to year-to-date gains of nearly 50% and over 100% in the past year. This momentum stems from fiscal first-quarter 2026 results showing revenue up 30% year-over-year to $3.16 billion, driven by record data center orders, 38% industrial growth, and 63% communications surge tied to AI infrastructure. Strong free cash flow at 39% of revenue, an 11% dividend hike to $1.10 per share, and upbeat Q2 guidance have bolstered sentiment, though the stock trades at a forward P/E of 34x amid competition in AI signal-chain solutions.
MCHP Overview and Recent Performance
Microchip Technology (MCHP), a provider of microcontroller units (MCUs), analog, and connectivity solutions for embedded systems, targets industrial, automotive, and consumer applications. Recent weeks have seen MCHP shares surge over 40% in the past month and 55% year-to-date, with 1-year returns topping 110%. This reflects improving channel inventory from prior highs, strong Q3 fiscal 2026 net sales of $1.19 billion (up 16% year-over-year), and non-GAAP EPS of $0.44 beating estimates, alongside Q4 guidance for $1.26 billion in sales and EPS around $0.50 (up 355% year-over-year). Positive bookings and mixed-signal microcontroller demand have shifted sentiment, though lingering inventory risks and a forward P/E of 37x highlight valuation pressures in a cyclical recovery.
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Head-to-Head Comparison
ADI and MCHP both focus on analog/mixed-signal chips but differ in business models: ADI's broad high-performance portfolio emphasizes industrial (47% of revenue) and data center exposure, while MCHP leans on MCUs for embedded edge computing. Growth drivers include AI infrastructure for both, but ADI benefits from diversified scale ($12B+ annual revenue) versus MCHP's inventory normalization. Recent momentum favors MCHP short-term (40%+ monthly gain) over ADI's steadier 25%, though ADI leads in cash generation. Risk factors: MCHP faces higher beta (1.74) and channel overhang, while ADI contends with competition; both share sector cyclicality. Sentiment tilts positive on AI catalysts, with ADI at Zacks #2 (Buy) and stronger analyst targets.
Tickeron AI Verdict
Tickeron’s AI currently favors ADI due to its trend consistency, superior free cash flow margins, broader AI/data center positioning, and lower relative volatility amid recent market rallies. While MCHP shows sharper short-term momentum ahead of earnings, ADI's scale and segment leadership suggest higher probability of sustained outperformance in the analog semiconductor recovery.
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 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 Hold and MCHP is a Hold.
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 2 FA rating(s) are green whileMCHP’s FA Score has 1 green FA rating(s).
- ADI’s FA Score: 2 green, 3 red.
- MCHP’s FA Score: 1 green, 4 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 3 TA indicator(s) are bullish while MCHP’s TA Score has 5 bullish TA indicator(s).
- ADI’s TA Score: 3 bullish, 5 bearish.
- MCHP’s TA Score: 5 bullish, 5 bearish.
Price Growth
ADI (@Semiconductors) experienced а +0.23% price change this week, while MCHP (@Semiconductors) price change was -5.29% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +4.47%. For the same industry, the average monthly price growth was +39.39%, and the average quarterly price growth was +81.10%.
Reported Earning Dates
ADI is expected to report earnings on May 20, 2026.
MCHP is expected to report earnings on Aug 04, 2026.
Industries' Descriptions
@Semiconductors (+4.47% 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 | 50.8B | 402% |
| EBITDA | 5.53B | 877M | 630% |
| Gain YTD | 54.424 | 48.152 | 113% |
| P/E Ratio | 76.32 | 426.59 | 18% |
| Revenue | 11.8B | 4.37B | 270% |
| Total Cash | 4.05B | 251M | 1,613% |
| Total Debt | 8.68B | 5.41B | 161% |
ADI | MCHP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 84 | 79 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 67 Overvalued | 92 Overvalued | |
PROFIT vs RISK RATING 1..100 | 8 | 72 | |
SMR RATING 1..100 | 77 | 91 | |
PRICE GROWTH RATING 1..100 | 10 | 11 | |
P/E GROWTH RATING 1..100 | 42 | 53 | |
SEASONALITY SCORE 1..100 | 50 | 90 |
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 (67) in the Semiconductors industry is in the same range as MCHP (92). This means that ADI’s stock grew similarly to MCHP’s over the last 12 months.
ADI's Profit vs Risk Rating (8) in the Semiconductors industry is somewhat better than the same rating for MCHP (72). This means that ADI’s stock grew somewhat faster than MCHP’s over the last 12 months.
ADI's SMR Rating (77) 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 (10) in the Semiconductors industry is in the same range as MCHP (11). This means that ADI’s stock grew similarly to MCHP’s over the last 12 months.
ADI's P/E Growth Rating (42) in the Semiconductors industry is in the same range as MCHP (53). This means that ADI’s stock grew similarly to MCHP’s over the last 12 months.
| ADI | MCHP | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 52% | 3 days ago 64% |
| Stochastic ODDS (%) | 3 days ago 71% | 3 days ago 70% |
| Momentum ODDS (%) | N/A | 3 days ago 78% |
| MACD ODDS (%) | 3 days ago 62% | 3 days ago 70% |
| TrendWeek ODDS (%) | 3 days ago 61% | 3 days ago 75% |
| TrendMonth ODDS (%) | 3 days ago 60% | 3 days ago 66% |
| Advances ODDS (%) | 7 days ago 61% | 12 days ago 65% |
| Declines ODDS (%) | 3 days ago 55% | 5 days ago 73% |
| BollingerBands ODDS (%) | 3 days ago 51% | 3 days ago 76% |
| Aroon ODDS (%) | 3 days ago 56% | 3 days ago 60% |
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MCHP and
Correlation & Price change
A.I.dvisor indicates that over the last year, MCHP has been closely correlated with MCHPP. These tickers have moved in lockstep 96% of the time. This A.I.-generated data suggests there is a high statistical probability that if MCHP jumps, then MCHPP could also see price increases.
| Ticker / NAME | Correlation To MCHP | 1D Price Change % | ||
|---|---|---|---|---|
| MCHP | 100% | -3.29% | ||
| MCHPP - MCHP | 96% Closely correlated | -2.99% | ||
| KLIC - MCHP | 75% Closely correlated | -1.97% | ||
| ON - MCHP | 75% Closely correlated | -4.44% | ||
| TXN - MCHP | 74% Closely correlated | -1.77% | ||
| ENTG - MCHP | 74% Closely correlated | -4.44% | ||
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