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FN vs MCHP
Which Stock Would AI Choose? Fabrinet (FN) vs. Microchip Technology (MCHP) Stock Comparison
Key Takeaways
- FN has delivered explosive growth with shares up over 150% in the past year, driven by optical communications and AI-related demand in telecom and datacenters.
- MCHP offers steadier recovery with 16-20% annual gains, supported by broad-based semiconductor demand but facing inventory headwinds.
- Recent quarters show FN revenue surging 36% YoY to $1.13B versus MCHP's 16% rise to $1.19B, highlighting FN's momentum in high-growth optics.
- Both stocks benefit from AI catalysts, but FN leads in relative performance amid datacenter interconnect ramps.
- MCHP provides a dividend yield around 2.9%, appealing for income-focused investors, while FN emphasizes growth.
- Market caps stand at ~$18B for FN and ~$34B for MCHP, reflecting differing scales in the tech hardware space.
Introduction
This stock comparison examines FN (Fabrinet) and MCHP (Microchip Technology), two key players in the technology hardware and semiconductor sectors. Both companies serve critical roles in optical manufacturing and embedded control solutions, benefiting from AI-driven demand in datacenters, telecom, and industrial applications. Traders seeking momentum in high-growth optics may favor FN, while investors prioritizing diversified recovery and dividends might lean toward MCHP. This analysis highlights their relative performance, growth drivers, and market positioning in the current environment.
FN Overview and Recent Performance
Fabrinet provides precision optical, electro-mechanical, and electronic manufacturing services, primarily for original equipment manufacturers in North America, Asia-Pacific, and Europe. The company specializes in optical communications, which account for the majority of its revenue, alongside exposure to automotive, industrial lasers, medical, and sensors. In recent market activity, FN shares have shown strong upward momentum, with one-year returns exceeding 150% and YTD gains around 13%, outperforming broader indices. This performance stems from robust demand in telecom and datacenter interconnect (DCI), with optical communications revenue reaching $833 million in the fiscal Q2 2026, up 29% YoY. Key influences include accelerating high-performance computing (HPC) programs, now exceeding $85 million quarterly, and upcoming ramps in 800ZR and co-packaged optics. Recent quarters delivered record revenue of $1.13 billion, up 36% YoY, with non-GAAP EPS of $3.36 beating estimates. Guidance points to continued sequential growth, bolstering positive sentiment amid easing datacom constraints.
MCHP Overview and Recent Performance
Microchip Technology develops, manufactures, and sells smart, connected, and secure embedded control solutions, including microcontrollers and analog semiconductors, serving markets in the Americas, Europe, and Asia. Its products support automotive, industrial, aerospace, and consumer applications. In recent weeks, MCHP shares have experienced modest pressure amid broader sector rotation, with one-year returns around 16-20% and YTD up approximately 4%. Performance reflects a recovery from inventory overhang, with fiscal Q3 2026 revenue of $1.19 billion, rising 16% YoY and beating expectations. Non-GAAP EPS reached $0.44, surpassing forecasts, driven by stronger bookings and design wins in automotive Ethernet and edge AI. Management highlights broad-based end-market recovery, with channel inventory stabilizing and guidance for sequential growth to $1.26 billion. Sentiment is supported by product expansions like the Trust Platform for cybersecurity and collaborations in electric vehicles, though high inventory levels persist as a near-term risk factor.
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Head-to-Head Comparison
FN and MCHP operate in complementary tech ecosystems, with FN focusing on contract manufacturing for optics and MCHP on semiconductor design. Growth drivers diverge: FN leverages AI-fueled DCI and HPC ramps, while MCHP benefits from diversified analog/mixed-signal recovery. Recent momentum favors FN with 25% monthly gains earlier, versus MCHP's steadier 10-16% quarterly upticks. Risk factors include supply constraints for FN and lingering inventory for MCHP. Both have strong sector exposure to AI and datacenters, but FN shows higher beta (1.02) and valuation (P/E ~49), trading at a premium to MCHP's more mature profile. Market sentiment tilts toward FN for growth trades, while MCHP appeals for stability and yield in relative performance analysis.
Tickeron AI Verdict
Tickeron’s AI currently favors FN due to superior trend consistency in optical communications, stronger relative momentum with 150%+ one-year gains, and clear catalysts like 800ZR ramps and HPC scaling. While MCHP exhibits stability and broad recovery signals, FN's positioning in high-growth AI infrastructure offers higher probabilistic upside in the near term, based on recent earnings beats and guidance.
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 FN is a Buy and MCHP is a Buy.
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).
FN’s FA Score shows that 2 FA rating(s) are green whileMCHP’s FA Score has 3 green FA rating(s).
- FN’s FA Score: 2 green, 3 red.
- MCHP’s FA Score: 3 green, 2 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.
FN’s TA Score shows that 5 TA indicator(s) are bullish while MCHP’s TA Score has 5 bullish TA indicator(s).
- FN’s TA Score: 5 bullish, 3 bearish.
- MCHP’s TA Score: 5 bullish, 5 bearish.
Price Growth
FN (@Electronic Components) experienced а +1.47% price change this week, while MCHP (@Semiconductors) price change was +9.30% for the same time period.
The average weekly price growth across all stocks in the @Electronic Components industry was +3.18%. For the same industry, the average monthly price growth was +13.78%, and the average quarterly price growth was +22.96%.
The average weekly price growth across all stocks in the @Semiconductors industry was +10.21%. For the same industry, the average monthly price growth was +26.79%, and the average quarterly price growth was +26.09%.
Reported Earning Dates
FN is expected to report earnings on May 11, 2026.
MCHP is expected to report earnings on May 11, 2026.
Industries' Descriptions
@Electronic Components (+3.18% weekly)The Electronic Components industry produces electronic equipment for industries and consumer electronics products, such as mobile devices, televisions, and circuit boards. TE Connectivity Ltd, for example, is a company that designs and manufactures connectivity and sensor products for harsh environments in various industries, such as automotive, industrial equipment, aerospace, and oil & gas. Another major player, Corning Inc., makes advanced optics including end-to-end fiber and wireless solutions for communications networks along with various other technologies catering to industrial and scientific applications.
@Semiconductors (+10.21% 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.
| FN | MCHP | FN / MCHP | |
| Capitalization | 25.1B | 43.5B | 58% |
| EBITDA | 466M | 877M | 53% |
| Gain YTD | 53.754 | 26.904 | 200% |
| P/E Ratio | 67.12 | 86.21 | 78% |
| Revenue | 3.89B | 4.37B | 89% |
| Total Cash | 961M | 251M | 383% |
| Total Debt | 4.89M | 5.41B | 0% |
FN | MCHP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 31 | 24 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 74 Overvalued | 15 Undervalued | |
PROFIT vs RISK RATING 1..100 | 4 | 85 | |
SMR RATING 1..100 | 46 | 91 | |
PRICE GROWTH RATING 1..100 | 35 | 7 | |
P/E GROWTH RATING 1..100 | 5 | 6 | |
SEASONALITY SCORE 1..100 | 50 | 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.
MCHP's Valuation (15) in the Semiconductors industry is somewhat better than the same rating for FN (74) in the Electronic Components industry. This means that MCHP’s stock grew somewhat faster than FN’s over the last 12 months.
FN's Profit vs Risk Rating (4) in the Electronic Components industry is significantly better than the same rating for MCHP (85) in the Semiconductors industry. This means that FN’s stock grew significantly faster than MCHP’s over the last 12 months.
FN's SMR Rating (46) in the Electronic Components industry is somewhat better than the same rating for MCHP (91) in the Semiconductors industry. This means that FN’s stock grew somewhat faster than MCHP’s over the last 12 months.
MCHP's Price Growth Rating (7) in the Semiconductors industry is in the same range as FN (35) in the Electronic Components industry. This means that MCHP’s stock grew similarly to FN’s over the last 12 months.
FN's P/E Growth Rating (5) in the Electronic Components industry is in the same range as MCHP (6) in the Semiconductors industry. This means that FN’s stock grew similarly to MCHP’s over the last 12 months.
| FN | MCHP | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 67% | 1 day ago 73% |
| Stochastic ODDS (%) | 1 day ago 70% | 1 day ago 78% |
| Momentum ODDS (%) | 1 day ago 83% | 1 day ago 68% |
| MACD ODDS (%) | 1 day ago 73% | 1 day ago 66% |
| TrendWeek ODDS (%) | 1 day ago 78% | 1 day ago 66% |
| TrendMonth ODDS (%) | 1 day ago 79% | 1 day ago 64% |
| Advances ODDS (%) | 1 day ago 80% | 1 day ago 65% |
| Declines ODDS (%) | N/A | 23 days ago 73% |
| BollingerBands ODDS (%) | 1 day ago 72% | 1 day ago 74% |
| Aroon ODDS (%) | 1 day ago 78% | 1 day ago 79% |
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