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MCHP vs STM
Which Stock Would AI Choose? Microchip Technology Incorporated (MCHP) vs. STMicroelectronics N.V. (STM) Stock Comparison
Key Takeaways
- STM has delivered superior year-to-date (YTD) performance of 91.68% compared to MCHP's 33.01%.
- Both stocks trade with similar market capitalizations around $45 billion, reflecting comparable scale in the semiconductor sector.
- MCHP provides a higher dividend yield at 2.16%, appealing to income-focused investors, versus STM's 0.72%.
- STM exhibits stronger one-year returns of 117.87% against MCHP's 84.60%.
- Recent product launches and earnings momentum support positive sentiment for both, amid rising demand for industrial and AI chips.
- MCHP holds a valuation edge in some peer analyses within semiconductors.
Introduction
Microchip Technology Incorporated (MCHP) and STMicroelectronics N.V. (STM) are prominent players in the semiconductor industry, specializing in microcontrollers (MCUs), analog chips, and connectivity solutions essential for automotive, industrial, Internet of Things (IoT), and emerging AI applications. This stock comparison is particularly relevant for traders and investors navigating the volatile semiconductor sector, where supply chain dynamics, AI-driven demand, and macroeconomic shifts influence relative performance. By examining recent market activity, financial metrics, and growth drivers, readers can assess positioning, momentum, and trade-offs between these peers amid broader market trends.
MCHP Overview and Recent Performance
Microchip Technology Incorporated (MCHP) designs and manufactures semiconductor products, including MCUs, analog devices, and interface solutions for embedded control applications across industrial, automotive, and consumer markets. In recent market activity, the stock has rallied toward two-year highs, trading around $84 with a year-to-date gain of 33.01%. Key influences include a strong Q3 fiscal 2026 earnings report, with revenue of $1.19 billion and normalized EPS of $0.44 beating estimates, alongside expansions in hydrogen masers and post-quantum-ready controllers. Anticipation for Q4 results and industrial chip demand have bolstered sentiment, though shares dipped recently amid sector rotation.
STM Overview and Recent Performance
STMicroelectronics N.V. (STM) is a global semiconductor leader offering analog, power discrete, MCUs, and sensors for automotive, industrial, personal electronics, and communications. Recent weeks have seen robust momentum, with shares around $50 posting a striking YTD return of 91.68%. Despite a Q1 2026 EPS miss at $0.13 versus expectations, revenues rose year-over-year to $3.1 billion, fueling surging earnings estimates and upgrades to buy ratings. New ultralow-power image sensors and AI data center exposure have driven gains, including over 55% in recent four-week periods, reflecting strong market positioning.
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Head-to-Head Comparison
MCHP and STM operate in overlapping semiconductor niches but diverge in focus: MCHP emphasizes embedded MCUs and mixed-signal processing, while STM offers broader exposure to power discretes, sensors, and automotive chips. Growth drivers highlight STM's edge in recent momentum, with superior YTD and one-year returns amid AI and industrial tailwinds, contrasted by MCHP's steadier path supported by earnings beats. Risk profiles show MCHP's higher beta of 1.47 indicating greater market sensitivity versus STM's 1.22, though MCHP's dividend provides income stability. Sector exposure ties both to cyclical auto and industrial cycles, but STM benefits more from personal electronics recovery. Market sentiment favors STM's upgrades, while MCHP's valuation scores higher among peers.
Tickeron AI Verdict
Tickeron’s AI models currently favor STM over MCHP based on stronger trend consistency, explosive recent momentum, and upward earnings revisions amid semiconductor upcycles. STM's relative positioning suggests higher probability of near-term outperformance, though MCHP's stability and dividends offer a balanced alternative for conservative strategies.
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 Hold and STM 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 1 FA rating(s) are green whileSTM’s FA Score has 1 green FA rating(s).
- MCHP’s FA Score: 1 green, 4 red.
- STM’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 STM’s TA Score has 3 bullish TA indicator(s).
- MCHP’s TA Score: 4 bullish, 4 bearish.
- STM’s TA Score: 3 bullish, 5 bearish.
Price Growth
MCHP (@Semiconductors) experienced а +7.05% price change this week, while STM (@Semiconductors) price change was +3.70% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +5.94%. For the same industry, the average monthly price growth was +15.19%, and the average quarterly price growth was +107.27%.
Reported Earning Dates
MCHP is expected to report earnings on Aug 04, 2026.
STM is expected to report earnings on Jul 23, 2026.
Industries' Descriptions
@Semiconductors (+5.94% 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 | STM | MCHP / STM | |
| Capitalization | 54.1B | 69.4B | 78% |
| EBITDA | 1.18B | 2.32B | 51% |
| Gain YTD | 49.308 | 183.613 | 27% |
| P/E Ratio | 453.50 | 489.94 | 93% |
| Revenue | 4.71B | 12.4B | 38% |
| Total Cash | 240M | 4.57B | 5% |
| Total Debt | 5.54B | 2.78B | 199% |
MCHP | STM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 71 | 75 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 89 Overvalued | 89 Overvalued | |
PROFIT vs RISK RATING 1..100 | 68 | 40 | |
SMR RATING 1..100 | 91 | 91 | |
PRICE GROWTH RATING 1..100 | 11 | 35 | |
P/E GROWTH RATING 1..100 | 52 | 1 | |
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.
MCHP's Valuation (89) in the Semiconductors industry is in the same range as STM (89). This means that MCHP’s stock grew similarly to STM’s over the last 12 months.
STM's Profit vs Risk Rating (40) in the Semiconductors industry is in the same range as MCHP (68). This means that STM’s stock grew similarly to MCHP’s over the last 12 months.
STM's SMR Rating (91) in the Semiconductors industry is in the same range as MCHP (91). This means that STM’s stock grew similarly to MCHP’s over the last 12 months.
MCHP's Price Growth Rating (11) in the Semiconductors industry is in the same range as STM (35). This means that MCHP’s stock grew similarly to STM’s over the last 12 months.
STM's P/E Growth Rating (1) in the Semiconductors industry is somewhat better than the same rating for MCHP (52). This means that STM’s stock grew somewhat faster than MCHP’s over the last 12 months.
| MCHP | STM | |
|---|---|---|
| RSI ODDS (%) | 8 days ago 90% | 2 days ago 69% |
| Stochastic ODDS (%) | 2 days ago 75% | 2 days ago 73% |
| Momentum ODDS (%) | 2 days ago 66% | 2 days ago 78% |
| MACD ODDS (%) | 2 days ago 60% | 2 days ago 85% |
| TrendWeek ODDS (%) | 2 days ago 68% | 2 days ago 72% |
| TrendMonth ODDS (%) | 2 days ago 67% | 2 days ago 71% |
| Advances ODDS (%) | 5 days ago 68% | 17 days ago 71% |
| Declines ODDS (%) | 3 days ago 73% | 3 days ago 70% |
| BollingerBands ODDS (%) | 2 days ago 74% | 2 days ago 76% |
| Aroon ODDS (%) | 2 days ago 72% | 2 days ago 61% |
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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 96% 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% | -1.59% | ||
| MCHPP - MCHP | 96% Closely correlated | -1.11% | ||
| TXN - MCHP | 77% Closely correlated | -1.25% | ||
| ADI - MCHP | 76% Closely correlated | -0.37% | ||
| ON - MCHP | 75% Closely correlated | -4.51% | ||
| KLIC - MCHP | 75% Closely correlated | -0.65% | ||
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STM and
Correlation & Price change
A.I.dvisor indicates that over the last year, STM has been closely correlated with ON. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if STM jumps, then ON could also see price increases.
| Ticker / NAME | Correlation To STM | 1D Price Change % | ||
|---|---|---|---|---|
| STM | 100% | -1.60% | ||
| ON - STM | 72% Closely correlated | -4.51% | ||
| ENTG - STM | 69% Closely correlated | +3.78% | ||
| KLIC - STM | 67% Closely correlated | -0.65% | ||
| FORM - STM | 65% Loosely correlated | -0.21% | ||
| ACLS - STM | 65% Loosely correlated | -0.79% | ||
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