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MCHP vs ON
Which Stock Would AI Choose? Microchip Technology (MCHP) vs. ON Semiconductor (ON) Stock Comparison
Key Takeaways
- MCHP and ON operate in the semiconductor sector but target distinct end markets, with MCHP emphasizing microcontrollers and analog solutions while ON focuses on power management and intelligent sensing.
- Over recent weeks, MCHP shares declined approximately 10% amid broader market pressures, while ON has shown resilience ahead of its Q2 2026 earnings release.
- MCHP announced the acquisition of Hailo to bolster artificial intelligence capabilities, contributing to a "Strong Buy" analyst consensus and elevated price targets.
- ON reported strong Q1 2026 results that exceeded expectations, with analysts projecting continued revenue and earnings growth for the current quarter.
- Both companies benefit from semiconductor market recovery themes, yet MCHP carries higher beta exposure while ON maintains a more moderate risk profile based on recent trading patterns.
- Relative positioning favors stability and catalysts in MCHP versus near-term earnings visibility in ON.
Introduction
This comparison examines MCHP (Microchip Technology Incorporated) and ON (ON Semiconductor Corporation, operating as onsemi), two established semiconductor companies navigating a cyclical industry recovery. The analysis highlights differences in business focus, recent price action, and market positioning to assist investors and traders evaluating relative opportunities. Portfolio managers, sector specialists, and active traders monitoring semiconductor exposure may find the side-by-side review useful for assessing diversification within technology holdings. The discussion draws on observable fundamentals and performance trends without projecting future outcomes.
MCHP Overview and Recent Performance
Microchip Technology designs and manufactures microcontrollers, analog integrated circuits, and related semiconductor solutions serving automotive, industrial, and consumer markets. In recent market activity, shares of MCHP declined roughly 10% over the past 30 days, trading near $74–$78 amid sector-wide volatility. The company reported fiscal 2026 results reflecting sequential revenue growth and margin expansion, signaling an emerging recovery in end markets. A notable development includes the definitive agreement to acquire Hailo, enhancing artificial intelligence processing capabilities. Analysts maintain a "Strong Buy" consensus with a mean price target around $114, reflecting optimism tied to earnings leverage and product portfolio expansion. Upcoming quarterly results are scheduled for early August 2026.
ON Overview and Recent Performance
ON Semiconductor, known as onsemi, specializes in power management, image sensors, and intelligent power solutions primarily for automotive, industrial, and communications applications. In recent market activity, ON has traded under pressure consistent with broader semiconductor concerns while preparing for its Q2 2026 earnings release. The company delivered first-quarter results that surpassed analyst estimates, with revenue of $1.513 billion and non-GAAP earnings per share of $0.64. Analysts anticipate Q2 revenue near $1.59 billion and EPS around $0.72, supporting a "Moderate Buy" consensus and mean price target near $111. The firm continues to emphasize operational transformation and share repurchases as part of its capital allocation strategy.
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Head-to-Head Comparison
MCHP maintains a diversified microcontroller and analog portfolio with significant automotive and industrial exposure, while ON concentrates on power semiconductors and sensing technologies that align closely with electric vehicle and energy-efficiency trends. Recent momentum shows MCHP benefiting from an acquisition catalyst yet experiencing sharper near-term price declines, whereas ON demonstrates steadier earnings visibility ahead of its quarterly report. Risk factors include MCHP’s higher beta of approximately 1.74 compared with ON’s 2.02, indicating differing volatility profiles within the same sector. Market sentiment remains constructive for both, supported by semiconductor recovery narratives, though MCHP carries additional upside potential from AI-related product enhancements while ON emphasizes execution on margin expansion and capital returns.
Tickeron AI Verdict
Based on observable factors such as trend consistency, stability metrics, and near-term catalysts, Tickeron’s AI models currently assign a modestly higher probabilistic weighting to MCHP due to the Hailo acquisition’s potential to broaden its addressable market and the elevated analyst price targets signaling stronger relative upside momentum. ON remains competitive given its earnings trajectory and operational improvements, though the immediate focus on the pending quarterly release introduces greater short-term uncertainty. This assessment reflects pattern recognition across available data rather than a directional forecast.
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 Hold 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 0 green FA rating(s).
- MCHP’s FA Score: 0 green, 5 red.
- ON’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.
MCHP’s TA Score shows that 5 TA indicator(s) are bullish while ON’s TA Score has 4 bullish TA indicator(s).
- MCHP’s TA Score: 5 bullish, 3 bearish.
- ON’s TA Score: 4 bullish, 3 bearish.
Price Growth
MCHP (@Semiconductors) experienced а -2.42% price change this week, while ON (@Semiconductors) price change was -8.40% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -7.69%. For the same industry, the average monthly price growth was -7.07%, and the average quarterly price growth was +37.02%.
Reported Earning Dates
MCHP is expected to report earnings on Oct 29, 2026.
ON is expected to report earnings on Nov 02, 2026.
Industries' Descriptions
@Semiconductors (-7.69% 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 | 41.3B | 28.9B | 143% |
| EBITDA | 1.18B | 1.52B | 78% |
| Gain YTD | 20.275 | 37.969 | 53% |
| P/E Ratio | 111.88 | 48.50 | 231% |
| 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 | 53 | 9 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 73 Overvalued | 54 Fair valued | |
PROFIT vs RISK RATING 1..100 | 85 | 71 | |
SMR RATING 1..100 | 88 | 77 | |
PRICE GROWTH RATING 1..100 | 61 | 62 | |
P/E GROWTH RATING 1..100 | 99 | 41 | |
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 (54) in the Semiconductors industry is in the same range as MCHP (73). This means that ON’s stock grew similarly to MCHP’s over the last 12 months.
ON's Profit vs Risk Rating (71) in the Semiconductors industry is in the same range as MCHP (85). This means that ON’s stock grew similarly to MCHP’s over the last 12 months.
ON's SMR Rating (77) in the Semiconductors industry is in the same range as MCHP (88). This means that ON’s stock grew similarly to MCHP’s over the last 12 months.
MCHP's Price Growth Rating (61) in the Semiconductors industry is in the same range as ON (62). This means that MCHP’s stock grew similarly to ON’s over the last 12 months.
ON's P/E Growth Rating (41) in the Semiconductors industry is somewhat better than the same rating for MCHP (99). This means that ON’s stock grew somewhat faster than MCHP’s over the last 12 months.
| MCHP | ON | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 86% | N/A |
| Stochastic ODDS (%) | 1 day ago 65% | 1 day ago 82% |
| Momentum ODDS (%) | 1 day ago 79% | 1 day ago 82% |
| MACD ODDS (%) | 1 day ago 70% | 1 day ago 71% |
| TrendWeek ODDS (%) | 1 day ago 76% | 1 day ago 76% |
| TrendMonth ODDS (%) | 1 day ago 76% | 1 day ago 75% |
| Advances ODDS (%) | 19 days ago 67% | 11 days ago 75% |
| Declines ODDS (%) | 3 days ago 75% | 1 day ago 77% |
| BollingerBands ODDS (%) | 1 day ago 64% | 1 day ago 82% |
| Aroon ODDS (%) | 1 day ago 72% | 1 day ago 62% |
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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 98% 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% | -1.65% | ||
| MCHPP - MCHP | 98% Closely correlated | -1.24% | ||
| ADI - MCHP | 80% Closely correlated | -0.81% | ||
| TXN - MCHP | 80% Closely correlated | -0.69% | ||
| NXPI - MCHP | 79% Closely correlated | -1.35% | ||
| ON - MCHP | 76% Closely correlated | -2.44% | ||
More | ||||
ON and
Correlation & Price change
A.I.dvisor indicates that over the last year, ON has been closely correlated with ADI. These tickers have moved in lockstep 77% of the time. This A.I.-generated data suggests there is a high statistical probability that if ON jumps, then ADI could also see price increases.