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ADI vs MCHP
Which Stock Would AI Choose? Analog Devices (ADI) vs. Microchip Technology (MCHP) Stock Comparison
Key Takeaways
- ADI is a larger, more diversified analog-semiconductor leader with accelerating data-center exposure, while MCHP is a smaller, microcontroller-heavy turnaround story still rebuilding its footing.
- Analog Devices recently posted its first quarterly revenue above $4 billion, driven by triple-digit growth in data-center power and optical products.
- Microchip is in the earlier stages of a cyclical recovery, with data-center revenue expected to approach $1 billion in calendar 2026 and 14 PCIe Gen6 design wins.
- ADI carries a "Strong Buy" analyst consensus and premium margins; MCHP carries a "Buy" consensus but a higher beta (1.76) and more leverage.
- Both companies benefit from industrial and automotive recovery, but ADI's AI-linked momentum and profitability give it a more stable relative positioning.
Introduction
Analog Devices (ADI) and Microchip Technology (MCHP) are two widely followed names in the semiconductor space, yet they occupy different positions in the current market cycle. ADI is a diversified analog and mixed-signal powerhouse riding strong data-center and AI-related demand, while MCHP is a microcontroller (MCU) specialist executing a recovery plan after a steep cyclical downturn. This stock comparison examines relative performance, growth drivers, and risk profiles to help traders and investors understand how these two companies contrast in market positioning today.
ADI Overview and Recent Performance
Analog Devices bridges the physical and digital worlds with analog, digital, and software technologies serving industrial, automotive, communications, and consumer markets. In recent weeks, ADI has been one of the stronger performers among analog peers, supported by record results. In its most recent fiscal quarter, revenue surpassed $4 billion for the first time, rising roughly 40% year over year, with industrial and data-center demand leading the way. Data center, now more than three-quarters of communications revenue, saw both optical and power product lines grow more than 100% year over year.
Sentiment has been further lifted by the planned acquisition of Empower Semiconductor, which adds vertical power delivery (supplying power directly within a processor package) and strengthens ADI's position in AI-driven compute density. Gross margins near 73% and a "Strong Buy" analyst consensus reflect confidence in the company's profitability and secular tailwinds. Recent price-target increases, including one to $500, underscore the constructive view on ADI's market positioning.
MCHP Overview and Recent Performance
Microchip Technology is a leading provider of smart, connected, and secure embedded control solutions, with mixed-signal MCUs accounting for roughly half of its revenue. After navigating a severe inventory correction, MCHP has shown a broadening recovery in recent quarters. In its most recent earnings report, revenue came in above guidance and grew more than 30% year over year, with industrial, automotive, and aerospace and defense segments all rebounding.
The company's most visible growth catalyst is data center and AI infrastructure, where it now targets roughly $1 billion in calendar-2026 revenue, up about 69% from 2025. Microchip has disclosed 14 PCIe Gen6 design wins and has begun initial Gen6 production shipments. That said, MCHP carries more balance-sheet risk than ADI, with long-term debt above $5 billion, and faces external supply constraints in foundry nodes and assembly-and-test capacity. The stock's higher beta (a measure of volatility relative to the broader market) reflects its more leveraged, earlier-stage recovery profile.
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Head-to-Head Comparison
The core contrast between these two names is scale, momentum, and maturity. ADI operates with materially higher gross margins (around 73%) and a broader, more diversified revenue base, giving it greater earnings stability and stronger AI-linked data-center exposure. MCHP, by contrast, is a higher-beta recovery play whose upside depends on executing its turnaround, ramping PCIe Gen6 products, and deleveraging its balance sheet.
Growth drivers also diverge. ADI's momentum is concentrated in data-center power and optical connectivity, where demand is structurally tied to AI infrastructure buildouts. Microchip's opportunity is more cyclical, hinging on industrial and automotive inventory normalization plus a still-early data-center push where it remains a smaller player after missing much of the Gen5 cycle. On risk, MCHP's elevated debt, external supply constraints, and premium valuation on a forward basis present more execution risk, whereas ADI's primary risks center on the pace and durability of AI-driven spending. Market sentiment favors both names, but with ADI earning a stronger consensus rating and more consistent trend characteristics.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor ADI for its stronger trend consistency, superior profitability, and clearer AI-linked catalysts. The combination of record revenue, expanding data-center content, high margins, and rising analyst targets points to more stable relative positioning. MCHP offers a higher-upside, higher-volatility alternative whose appeal rests on a successful recovery and Gen6 ramp, but its heavier leverage and less-proven momentum suggest greater uncertainty. In probabilistic terms, ADI currently presents the more consistent setup, while MCHP remains a compelling but more speculative turnaround candidate.
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.
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 Hold.
Momentum Indicator for ADI turns positive, indicating new upward trend
ADI saw its Momentum Indicator move above the 0 level on October 26, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 105 similar instances where the indicator turned positive. In 72 of the 105 cases, the stock moved higher in the following days. The odds of a move higher are at 69%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for ADI just turned positive on October 28, 2026. Looking at past instances where ADI's MACD turned positive, the stock continued to rise in 29 of 52 cases over the following month. The odds of a continued upward trend are 56%.
Following a +1.86% 3-day Advance, the price is estimated to grow further. Considering data from situations where ADI advanced for three days, in 203 of 324 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Aroon Indicator entered an Uptrend today. In 129 of 224 cases where ADI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 58%.
Bearish Trend Analysis
The 10-day RSI Indicator for ADI moved out of overbought territory on October 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In 25 of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at 71%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 39 of 66 cases where ADI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 59%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
ADI broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 9 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. ADI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 63 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 69 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 74 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.063) is normal, around the industry mean (6.097). P/E Ratio (49.562) is within average values for comparable stocks, (18.355). Projected Growth (PEG Ratio) (0.591) is also within normal values, averaging (3.803). Dividend Yield (0.010) settles around the average of (0.012) among similar stocks. P/S Ratio (12.804) is also within normal values, averaging (46.468).
MCHP saw its Stochastic Oscillator recovers from the overbought zone
The Stochastic Oscillator for MCHP moved out of overbought territory on November 02, 2026. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 53 similar instances where the indicator exited the overbought zone. In 42 of the 53 cases the stock moved lower. This puts the odds of a downward move at 79%.
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MCHP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
MCHP broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 26, 2026. You may want to consider a long position or call options on MCHP as a result. In 60 of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 62%.
The Moving Average Convergence Divergence (MACD) for MCHP just turned positive on October 27, 2026. Looking at past instances where MCHP's MACD turned positive, the stock continued to rise in 31 of 47 cases over the following month. The odds of a continued upward trend are 66%.
MCHP moved above its 50-day moving average on October 26, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for MCHP crossed bullishly above the 50-day moving average on October 27, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 71%.
Following a +8.27% 3-day Advance, the price is estimated to grow further. Considering data from situations where MCHP advanced for three days, in 194 of 289 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 50 (best 1 - 100 worst), indicating steady price growth. MCHP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 82 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 84 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.557) is normal, around the industry mean (5.894). P/E Ratio (114.559) is within average values for comparable stocks, (16.337). Projected Growth (PEG Ratio) (0.233) is also within normal values, averaging (3.803). Dividend Yield (0.023) settles around the average of (0.012) among similar stocks. P/S Ratio (7.446) is also within normal values, averaging (46.468).
The Tickeron Profit vs. Risk Rating rating for this company is 87 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. MCHP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is 95 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
ADI | MCHP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 28 | 8 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 74 Overvalued | 84 Overvalued | |
PROFIT vs RISK RATING 1..100 | 9 | 87 | |
SMR RATING 1..100 | 63 | 82 | |
PRICE GROWTH RATING 1..100 | 41 | 50 | |
P/E GROWTH RATING 1..100 | 69 | 95 | |
SEASONALITY SCORE 1..100 | n/a | 75 |
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 (74) in the Semiconductors industry is in the same range as MCHP (84). This means that ADI’s stock grew similarly to MCHP’s over the last 12 months.
ADI's Profit vs Risk Rating (9) in the Semiconductors industry is significantly better than the same rating for MCHP (87). This means that ADI’s stock grew significantly faster than MCHP’s over the last 12 months.
ADI's SMR Rating (63) in the Semiconductors industry is in the same range as MCHP (82). This means that ADI’s stock grew similarly to MCHP’s over the last 12 months.
ADI's Price Growth Rating (41) in the Semiconductors industry is in the same range as MCHP (50). This means that ADI’s stock grew similarly to MCHP’s over the last 12 months.
ADI's P/E Growth Rating (69) in the Semiconductors industry is in the same range as MCHP (95). This means that ADI’s stock grew similarly to MCHP’s over the last 12 months.
| ADI | MCHP | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 71% | N/A |
| Stochastic ODDS (%) | 1 day ago 59% | 2 days ago 79% |
| Momentum ODDS (%) | 1 day ago 69% | 2 days ago 63% |
| MACD ODDS (%) | 1 day ago 56% | 2 days ago 66% |
| TrendWeek ODDS (%) | 1 day ago 62% | 2 days ago 68% |
| TrendMonth ODDS (%) | 1 day ago 62% | 2 days ago 77% |
| Advances ODDS (%) | 6 days ago 63% | 8 days ago 67% |
| Declines ODDS (%) | 2 days ago 57% | 2 days ago 76% |
| BollingerBands ODDS (%) | 1 day ago 50% | 2 days ago 73% |
| Aroon ODDS (%) | 1 day ago 58% | N/A |
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 overvalued. 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 while MCHP’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 4 TA indicator(s) are bullish while MCHP’s TA Score has 5 bullish TA indicator(s).
- ADI’s TA Score: 4 bullish, 4 bearish.
- MCHP’s TA Score: 5 bullish, 3 bearish.
Price Growth
ADI (@Semiconductors) experienced а -1.31% price change this week, while MCHP (@Semiconductors) price change was +0.28% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -7.30%. For the same industry, the average monthly price growth was -22.76%, and the average quarterly price growth was -21.20%.
Reported Earning Dates
ADI is expected to report earnings on Nov 24, 2026.
MCHP is expected to report earnings on Nov 05, 2026.
Industries' Descriptions
@Semiconductors (-7.30% 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.
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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 99% 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% | +2.35% | ||
| MCHPP - MCHP | 99% Closely correlated | +2.49% | ||
| TXN - MCHP | 81% Closely correlated | +3.47% | ||
| ADI - MCHP | 80% Closely correlated | +1.68% | ||
| NXPI - MCHP | 79% Closely correlated | +2.16% | ||
| ON - MCHP | 77% Closely correlated | +3.55% | ||
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