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MCHP vs ON
Which Stock Would AI Choose? Microchip Technology (MCHP) vs. ON Semiconductor (ON) Stock Comparison
Key Takeaways
- Microchip Technology (MCHP) and ON Semiconductor (ON) both operate in the semiconductor sector with exposure to analog and power management solutions, yet they differ in end-market focus and recent momentum.
- Over the past year, ON has delivered stronger total returns compared to MCHP, supported by robust growth in artificial intelligence (AI) data-center applications.
- Recent market activity shows both stocks experiencing volatility amid broader semiconductor sector fluctuations, with MCHP highlighting expansion in its data center solutions unit.
- MCHP emphasizes embedded control and microcontroller technologies, while ON focuses on power semiconductors and image sensors, creating distinct growth drivers.
- Sector-wide factors such as AI demand and supply chain dynamics have influenced sentiment for both companies in recent weeks.
- Relative performance indicates ON maintaining a lead in year-to-date gains, though both face similar macroeconomic and industry risks.
Introduction
This comparison examines Microchip Technology (MCHP) and ON Semiconductor (ON), two established players in the semiconductor industry. Investors and traders seeking to understand relative positioning within the analog and power semiconductor space may find this analysis relevant. The article reviews business models, recent performance trends, and market factors without making forward-looking predictions. It is designed for those evaluating sector exposure, momentum differences, and risk profiles in the current environment.
MCHP Overview and Recent Performance
Microchip Technology (MCHP) provides smart, connected, and secure embedded control solutions, primarily through microcontrollers and analog products. The company serves diverse end markets including automotive, industrial, and data center applications. In recent market activity, shares have reflected a recovery trajectory supported by improving demand across multiple segments. Management has noted broad-based bookings strength and progress in reducing inventory levels. The data center solutions business unit has shown notable expansion potential tied to AI infrastructure needs. Stock behavior in recent weeks has included volatility consistent with peer movements in the semiconductor group, with year-to-date gains remaining positive amid fluctuating sentiment.
ON Overview and Recent Performance
ON Semiconductor (ON) specializes in power and analog semiconductors, along with image sensors and related solutions. Key markets include automotive, industrial, and communications. Recent performance has featured solid year-to-date advances driven by sequential growth in AI data-center revenues. The company has benefited from cyclical demand improvements and expanded opportunities in power management for high-performance computing. Market activity in recent weeks aligns with broader sector dynamics, including responses to tariff developments and AI-related supply considerations. Overall positioning reflects resilience in core segments, with trading patterns influenced by industry-wide momentum shifts.
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Head-to-Head Comparison
Microchip Technology (MCHP) and ON Semiconductor (ON) share semiconductor sector exposure yet differ in emphasis. MCHP centers on embedded control and microcontrollers with growing data center contributions, while ON prioritizes power semiconductors and AI-adjacent applications. Recent momentum has favored ON in total return metrics over trailing periods, though both have encountered sector volatility. Risk factors include cyclical demand fluctuations, inventory adjustments, and external trade policies affecting the broader industry. Market sentiment reflects ongoing interest in AI-driven opportunities, with each company positioned differently in supply chain and end-market dynamics. Trade-offs center on MCHP’s diversified microcontroller base versus ON’s concentrated power and AI revenue streams.
Tickeron AI Verdict
Based on observable trend consistency, relative stability indicators, and positioning within AI-related growth areas, Tickeron’s AI models currently assign a higher probabilistic preference to ON Semiconductor (ON) over Microchip Technology (MCHP) in the near term. This assessment draws from comparative performance patterns and sector exposure without implying certainty or specific outcomes.
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 MCHP is a Buy and ON 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).
MCHP’s FA Score shows that 0 FA rating(s) are green whileON’s FA Score has 1 green FA rating(s).
- MCHP’s FA Score: 0 green, 5 red.
- ON’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.
MCHP’s TA Score shows that 4 TA indicator(s) are bullish while ON’s TA Score has 3 bullish TA indicator(s).
- MCHP’s TA Score: 4 bullish, 6 bearish.
- ON’s TA Score: 3 bullish, 6 bearish.
Price Growth
MCHP (@Semiconductors) experienced а -7.79% price change this week, while ON (@Semiconductors) price change was -7.09% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -2.80%. For the same industry, the average monthly price growth was -18.12%, and the average quarterly price growth was +36.24%.
Reported Earning Dates
MCHP is expected to report earnings on Aug 04, 2026.
ON is expected to report earnings on Aug 03, 2026.
Industries' Descriptions
@Semiconductors (-2.80% 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.
| MCHP | ON | MCHP / ON | |
| Capitalization | 40.7B | 32.6B | 125% |
| EBITDA | 1.18B | 1.52B | 78% |
| Gain YTD | 19.006 | 54.644 | 35% |
| P/E Ratio | 340.95 | 61.57 | 554% |
| Revenue | 4.71B | 6.06B | 78% |
| Total Cash | 240M | 2.4B | 10% |
| Total Debt | 5.54B | 3.01B | 184% |
MCHP | ON | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 58 | 77 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 90 Overvalued | 59 Fair valued | |
PROFIT vs RISK RATING 1..100 | 89 | 65 | |
SMR RATING 1..100 | 90 | 79 | |
PRICE GROWTH RATING 1..100 | 63 | 55 | |
P/E GROWTH RATING 1..100 | 77 | 16 | |
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.
ON's Valuation (59) in the Semiconductors industry is in the same range as MCHP (90). This means that ON’s stock grew similarly to MCHP’s over the last 12 months.
ON's Profit vs Risk Rating (65) in the Semiconductors industry is in the same range as MCHP (89). This means that ON’s stock grew similarly to MCHP’s over the last 12 months.
ON's SMR Rating (79) in the Semiconductors industry is in the same range as MCHP (90). This means that ON’s stock grew similarly to MCHP’s over the last 12 months.
ON's Price Growth Rating (55) in the Semiconductors industry is in the same range as MCHP (63). This means that ON’s stock grew similarly to MCHP’s over the last 12 months.
ON's P/E Growth Rating (16) in the Semiconductors industry is somewhat better than the same rating for MCHP (77). This means that ON’s stock grew somewhat faster than MCHP’s over the last 12 months.
| MCHP | ON | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 90% | N/A |
| Stochastic ODDS (%) | 2 days ago 65% | 2 days ago 82% |
| Momentum ODDS (%) | 3 days ago 77% | 2 days ago 77% |
| MACD ODDS (%) | 5 days ago 77% | 2 days ago 82% |
| TrendWeek ODDS (%) | 2 days ago 75% | 2 days ago 75% |
| TrendMonth ODDS (%) | 2 days ago 75% | 2 days ago 74% |
| Advances ODDS (%) | 10 days ago 69% | 10 days ago 75% |
| Declines ODDS (%) | 3 days ago 74% | 3 days ago 76% |
| BollingerBands ODDS (%) | 2 days ago 81% | 2 days ago 82% |
| Aroon ODDS (%) | 2 days ago 78% | 2 days ago 67% |
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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 97% 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% | +5.10% | ||
| MCHPP - MCHP | 97% Closely correlated | +4.17% | ||
| TXN - MCHP | 81% Closely correlated | +2.75% | ||
| ADI - MCHP | 80% Closely correlated | +3.76% | ||
| NXPI - MCHP | 80% Closely correlated | +1.73% | ||
| ON - MCHP | 76% Closely correlated | +6.19% | ||
More | ||||
ON and
Correlation & Price change
A.I.dvisor indicates that over the last year, ON has been closely correlated with MCHP. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if ON jumps, then MCHP could also see price increases.