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MCHP vs ON
Which Stock Would AI Choose? Microchip Technology (MCHP) vs. ON Semiconductor (ON) Stock Comparison
Key Takeaways
- MCHP shares have surged approximately 40-50% in recent weeks, approaching 52-week highs near $99 amid strong semiconductor demand and analyst upgrades.
- ON has outperformed with over 60% gains in the past month, hitting new highs above $105, driven by Q1 earnings beats and EV silicon carbide momentum.
- Both stocks benefit from AI, data center, and automotive tailwinds, but ON shows superior recent momentum while MCHP offers a dividend yield around 1.9%.
- Year-to-date, ON leads at nearly 90% versus MCHP's 50%, reflecting relative performance in power solutions.
- Market caps stand at roughly $53B for MCHP and $40B for ON, with comparable betas indicating similar volatility.
- Sector exposure favors ON in EVs and industrials, while MCHP emphasizes embedded microcontrollers.
Introduction
This stock comparison examines MCHP and ON, two key players in the semiconductor sector specializing in analog, mixed-signal, and power solutions. Both companies serve high-growth areas like automotive electrification, industrial automation, and AI infrastructure, making them relevant for traders tracking cyclical recoveries and investors seeking exposure to embedded controls and sensing technologies. Amid recent market rallies in chips, understanding their relative performance, growth drivers, and positioning helps evaluate trade-offs in momentum, valuation, and risk in the current environment.
MCHP Overview and Recent Performance
Microchip Technology Incorporated designs, manufactures, and sells smart, connected embedded control solutions, including microcontrollers (MCUs), analog devices, and connectivity products for industrial, automotive, aerospace, and consumer applications. In recent market activity, MCHP shares have rallied sharply, gaining around 40% over the past month to trade near $98, approaching 52-week highs above $99. This momentum reflects broader semiconductor recovery, analyst price target upgrades (e.g., to $112), and product expansions like post-quantum security devices and hydrogen maser capacity in Alabama. Sentiment has shifted positively ahead of fiscal Q4 earnings, supported by solid prior results and demand in AI timing modules, though high inventory levels previously pressured performance. Year-to-date gains exceed 50%, outperforming benchmarks amid sector rotation.
ON Overview and Recent Performance
ON Semiconductor Corporation (onsemi) supplies intelligent power and sensing solutions, focusing on automotive, industrial, and cloud applications through segments like Power Solutions Group and Intelligent Sensing Group. Recent weeks have seen explosive gains, with shares up over 60% in the past month to around $102, hitting 52-week highs near $106. Key catalysts include Q1 2026 results beating estimates ($1.51B revenue, up 4.7% YoY; adjusted EPS $0.64), driven by AI data center growth over 30% sequentially and EV silicon carbide demand. Expansions in GaN pipelines exceeding $1.5B and partnerships bolster outlook, though Q2 guidance reflects ongoing industrial softness. Year-to-date returns near 90% highlight strong relative performance in power management amid electrification trends.
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Head-to-Head Comparison
MCHP and ON both thrive in analog/power semis but diverge in focus: MCHP leads in MCUs and embedded software for broad industrial/consumer uses, while ON dominates power/sensing for EVs and automation. Growth drivers overlap in AI data centers and autos, yet ON benefits more from SiC/GaN electrification, contrasting MCHP’s diversified exposure. Recent momentum favors ON (60%+ monthly vs. 40%), with one-year gains over 160% versus 100%. Risks include supply chain cycles and trade tensions for both; MCHP pays dividends (1.9% yield), absent in ON. Betas around 1.5-1.7 signal matched volatility, with sentiment tilting to ON on earnings catalysts but MCHP on stability.
Tickeron AI Verdict
Tickeron’s AI currently leans toward ON, citing superior recent momentum, earnings beats, and positioning in high-growth EV/AI power solutions. With 60%+ monthly gains, expanding SiC pipelines, and relative strength versus MCHP’s solid but trailing rally, ON shows higher probability of continued outperformance amid sector tailwinds, though both warrant monitoring for volatility.
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 MCHP is a StrongBuy and ON 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).
MCHP’s FA Score shows that 0 FA rating(s) are green whileON’s FA Score has 2 green FA rating(s).
- MCHP’s FA Score: 0 green, 5 red.
- ON’s FA Score: 2 green, 3 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, 4 bearish.
- ON’s TA Score: 3 bullish, 5 bearish.
Price Growth
MCHP (@Semiconductors) experienced а +7.81% price change this week, while ON (@Semiconductors) price change was -0.40% 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
MCHP is expected to report earnings on Aug 04, 2026.
ON is expected to report earnings on Aug 03, 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.
| MCHP | ON | MCHP / ON | |
| Capitalization | 51.6B | 45.4B | 114% |
| EBITDA | 1.18B | 1.52B | 78% |
| Gain YTD | 51.101 | 115.679 | 44% |
| P/E Ratio | 432.91 | 85.88 | 504% |
| 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 | 64 | 77 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 89 Overvalued | 61 Fair valued | |
PROFIT vs RISK RATING 1..100 | 69 | 47 | |
SMR RATING 1..100 | 91 | 80 | |
PRICE GROWTH RATING 1..100 | 39 | 3 | |
P/E GROWTH RATING 1..100 | 57 | 8 | |
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 (61) 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 Profit vs Risk Rating (47) in the Semiconductors industry is in the same range as MCHP (69). This means that ON’s stock grew similarly to MCHP’s over the last 12 months.
ON's SMR Rating (80) in the Semiconductors industry is in the same range as MCHP (91). This means that ON’s stock grew similarly to MCHP’s over the last 12 months.
ON's Price Growth Rating (3) in the Semiconductors industry is somewhat better than the same rating for MCHP (39). This means that ON’s stock grew somewhat faster than MCHP’s over the last 12 months.
ON's P/E Growth Rating (8) in the Semiconductors industry is somewhat better than the same rating for MCHP (57). This means that ON’s stock grew somewhat faster than MCHP’s over the last 12 months.
| MCHP | ON | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 90% | 3 days ago 81% |
| Stochastic ODDS (%) | 3 days ago 71% | 3 days ago 84% |
| Momentum ODDS (%) | 3 days ago 65% | 3 days ago 80% |
| MACD ODDS (%) | 3 days ago 68% | 3 days ago 76% |
| TrendWeek ODDS (%) | 3 days ago 68% | 3 days ago 75% |
| TrendMonth ODDS (%) | 3 days ago 74% | 3 days ago 77% |
| Advances ODDS (%) | 3 days ago 68% | 3 days ago 75% |
| Declines ODDS (%) | 10 days ago 73% | 5 days ago 76% |
| BollingerBands ODDS (%) | 3 days ago 81% | 3 days ago 81% |
| Aroon ODDS (%) | 3 days ago 77% | 3 days ago 77% |
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