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ADI vs MCHPP
Which Stock Would AI Choose? Analog Devices, Inc. (ADI) vs. Microchip Technology Incorporated (MCHPP) Stock Comparison
Key Takeaways
- ADI posted FY 2024 revenue of >$9 billion, maintained operating margins above 40% and raised its quarterly dividend to $0.92 per share.
- MCHPP reported FY 2024 revenue of $4.37 billion, posted a net loss of $154 million and trades at a high dividend yield of ~6%.
- ADI’s growth drivers stem from automotive‑qualified mixed‑signal MCUs and strong industrial demand, while MCHPP leans on legacy 8‑bit MCU volumes and expanding power‑module offerings.
- Both companies face inventory‑level headwinds, but ADI shows sequential recovery, whereas MCHPP’s share price remains range‑bound amid margin pressure.
- Tickeron’s AI robots favor the stock with clearer momentum, higher profitability, and the more sustainable cash‑return profile.
Introduction
Analog Devices, Inc. (ADI) and Microchip Technology Incorporated (MCHPP) are two of the most prominent semiconductor manufacturers listed on the Nasdaq. Investors compare them because they serve overlapping end‑markets—automotive, industrial and consumer electronics—yet differ in product mix, financial health and growth outlook. The comparison is especially relevant for traders seeking exposure to the broader “analog and embedded” sector while assessing which ticker aligns better with current market dynamics.
ADI Overview and Recent Performance
Analog Devices (ticker ADI) reported FY 2024 revenue of $9.43 billion, a 23% decline year‑over‑year driven by macro‑level inventory rationalization. Despite the revenue dip, the company delivered an operating margin of 41% and adjusted operating margin of 41.1%, underscoring resilient cost control. Adjusted diluted earnings per share (EPS) stood at $1.67, and free cash flow (FCF) reached $3.1 billion, representing 33% of revenue. The board increased the quarterly dividend to $0.92 (a 7% hike) and reaffirmed a long‑term commitment to return 100% of FCF to shareholders.
Recent sentiment shifted positively as ADI’s Q4 earnings beat the midpoint of guidance, and management highlighted sequential growth in the automotive and industrial segments. The company announced several product introductions, including a hybrid System‑in‑Package (SiP) MCU for automotive and the LX4580 mixed‑signal IC for high‑reliability actuation. Moreover, ADI’s guidance for FY 2025 projects revenue of $2.35 billion for Q1, with an adjusted operating margin near 40%, suggesting a modest but steady recovery.
MCHPP Overview and Recent Performance
Microchip Technology Incorporated (ticker MCHPP) posted FY 2024 revenue of $4.37 billion and a net loss of $154 million, reflecting pressure from elevated inventory days (≈201) and a gross margin of 58% that fell to 57.1% year‑over‑year. The company’s diluted EPS was –$0.29, and free cash flow of $996 million equated to 33% of revenue. MCHPP trades with a forward dividend yield of roughly 6% ($0.84 per share), offering a high‑yield profile despite weaker profitability.
During the past few weeks, MCHPP’s stock has lingered near the upper end of its 52‑week range ($47–$88), moving modestly on news of new BZPACK mSiC power modules and collaborations with Hyundai on single‑pair Ethernet for automotive. However, analysts cite continued margin compression—operating margin contracted to 21.6%—and heightened debt leverage (Debt/Equity ≈82%). The company’s outlook for FY 2025 emphasizes incremental growth in automotive and industrial MCU volumes but acknowledges lingering inventory correction.
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Head‑to‑Head Comparison
- Business Model: ADI blends analog, mixed‑signal and software, targeting high‑value automotive and industrial applications. MCHPP focuses on a broad MCU portfolio, emphasizing volume‑driven markets such as consumer and automotive low‑cost segments.
- Growth Drivers: ADI’s pipeline includes AI‑edge inference platforms, SiP MCUs for electric‑vehicle (EV) battery‑management, and automotive‑qualified safety‑critical parts. MCHPP’s growth relies on expanding its power‑module lineup and leveraging its extensive foundry network, but faces tighter pricing pressure.
- Recent Momentum: ADI showed sequential revenue growth in Q4 and raised its dividend, reflecting confidence in cash generation. MCHPP’s share price has been relatively flat, with modest upside from product announcements but muted earnings momentum.
- Risk Factors: ADI’s exposure to automotive cycles and potential supply‑chain constraints is balanced by a strong balance sheet (cash $1.99 billion, low leverage). MCHPP carries higher debt‑to‑equity, inventory‑days above industry average, and sensitivity to macro‑demand fluctuations.
- Sector Exposure: Both operate in the Technology‑Semiconductors sector, yet ADI skews toward the “Intelligent Edge” niche, while MCHPP remains a “General‑Purpose MCU” provider.
- Market Sentiment: Analyst consensus rates ADI as “Buy” with price targets 12% above current levels; MCHPP receives mixed “Hold/Sell” ratings, reflecting concerns over margin compression.
Tickeron AI Verdict
Based on observable metrics—consistent operating margins above 40%, expanding free cash flow, dividend growth, and a clear sequential recovery—Tickeron’s AI models currently assign a higher probability of outperformance to Analog Devices (ADI). Microchip (MCHPP) offers an attractive dividend but suffers from weaker profitability and higher leverage, which reduces its upside potential under the same risk‑adjusted criteria. Consequently, the AI‑driven recommendation leans toward ADI, though it remains probabilistic and contingent on further market developments.
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 MCHPP 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 whileMCHPP’s FA Score has 1 green FA rating(s).
- ADI’s FA Score: 1 green, 4 red.
- MCHPP’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 5 TA indicator(s) are bullish while MCHPP’s TA Score has 4 bullish TA indicator(s).
- ADI’s TA Score: 5 bullish, 3 bearish.
- MCHPP’s TA Score: 4 bullish, 4 bearish.
Price Growth
ADI (@Semiconductors) experienced а +4.09% price change this week, while MCHPP (@Semiconductors) price change was +6.62% 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.
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 | MCHPP | ADI / MCHPP | |
| Capitalization | 204B | N/A | - |
| EBITDA | 6.23B | 1.18B | 529% |
| Gain YTD | 54.958 | 40.711 | 135% |
| P/E Ratio | 62.17 | N/A | - |
| Revenue | 12.7B | 4.71B | 269% |
| Total Cash | 3.44B | 240M | 1,433% |
| Total Debt | 8.69B | 5.54B | 157% |
ADI | ||
|---|---|---|
OUTLOOK RATING 1..100 | 15 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 56 Fair valued | |
PROFIT vs RISK RATING 1..100 | 6 | |
SMR RATING 1..100 | 73 | |
PRICE GROWTH RATING 1..100 | 39 | |
P/E GROWTH RATING 1..100 | 53 | |
SEASONALITY SCORE 1..100 | 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 | MCHPP | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 65% | 3 days ago 63% |
| Stochastic ODDS (%) | 3 days ago 63% | 3 days ago 77% |
| Momentum ODDS (%) | 3 days ago 63% | 3 days ago 63% |
| MACD ODDS (%) | 3 days ago 63% | 3 days ago 67% |
| TrendWeek ODDS (%) | 3 days ago 63% | 3 days ago 75% |
| TrendMonth ODDS (%) | 3 days ago 60% | 3 days ago 72% |
| Advances ODDS (%) | 3 days ago 62% | 3 days ago 73% |
| Declines ODDS (%) | 10 days ago 54% | 10 days ago 66% |
| BollingerBands ODDS (%) | 3 days ago 64% | 3 days ago 71% |
| Aroon ODDS (%) | 3 days ago 65% | 3 days ago 51% |
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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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MCHPP and
Correlation & Price change
A.I.dvisor indicates that over the last year, MCHPP has been closely correlated with MCHP. These tickers have moved in lockstep 97% of the time. This A.I.-generated data suggests there is a high statistical probability that if MCHPP jumps, then MCHP could also see price increases.
| Ticker / NAME | Correlation To MCHPP | 1D Price Change % | ||
|---|---|---|---|---|
| MCHPP | 100% | +2.04% | ||
| MCHP - MCHPP | 97% Closely correlated | +2.47% | ||
| TXN - MCHPP | 75% Closely correlated | +1.35% | ||
| NXPI - MCHPP | 74% Closely correlated | +0.76% | ||
| ADI - MCHPP | 73% Closely correlated | +1.37% | ||
| ON - MCHPP | 73% Closely correlated | +0.72% | ||
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