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MCHP vs TSEM
Which Stock Would AI Choose? Microchip Technology (MCHP) vs. Tower Semiconductor (TSEM) Stock Comparison
Key Takeaways
- MCHP trades around $74 with a 17% YTD gain and 30% one-year return, showing recovery signs in embedded control solutions amid improving bookings.
- TSEM stands at $139, up 15% YTD but with explosive 226% one-year performance, driven by record Q4 revenue of $440 million and AI/SiPho focus.
- Both semiconductor firms benefit from sector tailwinds, but TSEM's recent partnerships in photonic tech for AI data centers provide stronger growth catalysts.
- MCHP offers stability with a larger $40B market cap, while TSEM's $15.6B cap reflects higher volatility and upside potential.
- Analyst targets suggest 17% upside for MCHP ($87) and 15% for TSEM ($159), with relative strength favoring AI-aligned plays.
- Recent market activity highlights TSEM's momentum from earnings beats and capex hikes, contrasting MCHP's steadier industrial recovery.
Introduction
This stock comparison examines MCHP (Microchip Technology) and TSEM (Tower Semiconductor), two key players in the semiconductor sector specializing in embedded solutions and foundry services. Both companies serve high-demand areas like automotive, industrial, and communications, but differ in business models and growth drivers. Traders seeking relative performance insights in the volatile chip market, and investors eyeing AI infrastructure versus traditional embedded recovery, will find this analysis valuable for understanding current market positioning, sentiment shifts, and head-to-head metrics.
MCHP Overview and Recent Performance
Microchip Technology Incorporated develops smart, connected embedded control solutions, including microcontrollers, analog products, and connectivity devices for automotive, industrial, and consumer markets. In recent market activity, MCHP shares have hovered around $74, within a 52-week range of $34-$83, reflecting a 17% YTD gain and 30% one-year rise amid broader semiconductor recovery. The stock advanced 39% over three months but dipped 5% in the past month, influenced by mixed quarterly results and cautious guidance despite strong bookings. Sentiment has improved with signs of industrial demand stabilization and presentations at investor conferences signaling optimism. Analyst targets average $87, supporting moderate upside as book-to-bill ratios exceed 1.0 in challenging conditions.
TSEM Overview and Recent Performance
Tower Semiconductor Ltd. operates as an independent foundry, providing customizable process technologies like SiGe, RF CMOS, and silicon photonics for consumer, automotive, and AI applications. Shares recently closed at $139, in a 52-week range of $29-$150, with 15% YTD and remarkable 226% one-year performance fueled by AI demand. Recent weeks saw a rally post-Q4 earnings of $440 million (up 14% YoY), with Q1 guidance at $412 million and $920 million SiPho capex targeting data center growth. Despite an 9% monthly pullback, three-month gains of 12% reflect partnerships with Nvidia and others in photonic quantum tech. Barclays raised its target to $142, with consensus at $159, bolstering positive sentiment.
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Head-to-Head Comparison
MCHP and TSEM both thrive in semiconductors but contrast sharply: MCHP's integrated model emphasizes stable embedded microcontrollers for industrial/auto (larger $40B cap, lower beta), while TSEM's pure-play foundry targets high-growth analog/mixed-signal and SiPho for AI/comms (smaller cap, higher volatility). Growth drivers diverge—MCHP leans on bookings recovery (book-to-bill >1), TSEM on record revenues and photonics capex/partnerships. Recent momentum favors TSEM (226% vs. 30% annual), but MCHP shows steadier three-month gains (39% vs. 12%). Risk factors include cyclical demand for MCHP and geopolitical exposure for Israel-based TSEM. Sentiment tilts toward TSEM's AI catalysts versus MCHP's valuation caution.
Tickeron AI Verdict
Tickeron’s AI currently favors TSEM due to superior trend consistency from earnings beats, AI/SiPho catalysts, and relative outperformance in recent volatility. While MCHP exhibits stability and recovery positioning, TSEM's higher growth trajectory and photonics momentum suggest greater probabilistic upside in the near term, aligned with semiconductor AI shifts.
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 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 TSEM 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 whileTSEM’s FA Score has 2 green FA rating(s).
- MCHP’s FA Score: 1 green, 4 red.
- TSEM’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 TSEM’s TA Score has 3 bullish TA indicator(s).
- MCHP’s TA Score: 4 bullish, 4 bearish.
- TSEM’s TA Score: 3 bullish, 4 bearish.
Price Growth
MCHP (@Semiconductors) experienced а +3.91% price change this week, while TSEM (@Semiconductors) price change was +6.42% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +14.80%. For the same industry, the average monthly price growth was +50.51%, and the average quarterly price growth was +75.22%.
Reported Earning Dates
MCHP is expected to report earnings on Aug 04, 2026.
TSEM is expected to report earnings on May 13, 2026.
Industries' Descriptions
@Semiconductors (+14.80% 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 | TSEM | MCHP / TSEM | |
| Capitalization | 53.6B | 24.8B | 216% |
| EBITDA | 877M | 507M | 173% |
| Gain YTD | 56.329 | 94.916 | 59% |
| P/E Ratio | 450.14 | 117.97 | 382% |
| Revenue | 4.37B | 1.51B | 289% |
| Total Cash | 251M | 1.22B | 21% |
| Total Debt | 5.41B | 164M | 3,296% |
MCHP | TSEM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 11 | 65 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 92 Overvalued | 86 Overvalued | |
PROFIT vs RISK RATING 1..100 | 71 | 3 | |
SMR RATING 1..100 | 91 | 78 | |
PRICE GROWTH RATING 1..100 | 6 | 35 | |
P/E GROWTH RATING 1..100 | 49 | 2 | |
SEASONALITY SCORE 1..100 | 90 | 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.
TSEM's Valuation (86) in the Semiconductors industry is in the same range as MCHP (92). This means that TSEM’s stock grew similarly to MCHP’s over the last 12 months.
TSEM's Profit vs Risk Rating (3) in the Semiconductors industry is significantly better than the same rating for MCHP (71). This means that TSEM’s stock grew significantly faster than MCHP’s over the last 12 months.
TSEM's SMR Rating (78) in the Semiconductors industry is in the same range as MCHP (91). This means that TSEM’s stock grew similarly to MCHP’s over the last 12 months.
MCHP's Price Growth Rating (6) in the Semiconductors industry is in the same range as TSEM (35). This means that MCHP’s stock grew similarly to TSEM’s over the last 12 months.
TSEM's P/E Growth Rating (2) in the Semiconductors industry is somewhat better than the same rating for MCHP (49). This means that TSEM’s stock grew somewhat faster than MCHP’s over the last 12 months.
| MCHP | TSEM | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 77% | 1 day ago 52% |
| Stochastic ODDS (%) | 7 days ago 63% | 1 day ago 56% |
| Momentum ODDS (%) | N/A | 1 day ago 80% |
| MACD ODDS (%) | N/A | 1 day ago 55% |
| TrendWeek ODDS (%) | 1 day ago 67% | 1 day ago 71% |
| TrendMonth ODDS (%) | 1 day ago 65% | 1 day ago 76% |
| Advances ODDS (%) | 7 days ago 65% | 1 day ago 69% |
| Declines ODDS (%) | 1 day ago 73% | 6 days ago 60% |
| BollingerBands ODDS (%) | 1 day ago 73% | N/A |
| Aroon ODDS (%) | 1 day ago 60% | 1 day ago 76% |
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| CHPS | 86.04 | 1.87 | +2.22% |
| Xtrackers Semiconductor Select Eq ETF | |||
| AUGM | 34.79 | N/A | N/A |
| FT Vest U.S. Eq Max Buffr ETF - Aug | |||
| CPSY | 25.55 | N/A | N/A |
| Calamos S&P 500 Str Alt Prt ETF-Jan | |||
| DIAL | 18.21 | -0.03 | -0.17% |
| Columbia Diversified Fixed Inc Allc ETF | |||
| ANGL | 29.08 | -0.08 | -0.29% |
| VanEck Fallen Angel HiYld Bd ETF | |||
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% | -0.06% | ||
| MCHPP - MCHP | 96% Closely correlated | -0.06% | ||
| TXN - MCHP | 76% Closely correlated | +3.46% | ||
| KLIC - MCHP | 75% Closely correlated | +1.59% | ||
| ON - MCHP | 75% Closely correlated | +3.91% | ||
| ADI - MCHP | 74% Closely correlated | +1.49% | ||
More | ||||
TSEM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSEM has been loosely correlated with AMKR. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if TSEM jumps, then AMKR could also see price increases.
| Ticker / NAME | Correlation To TSEM | 1D Price Change % | ||
|---|---|---|---|---|
| TSEM | 100% | +8.46% | ||
| AMKR - TSEM | 61% Loosely correlated | +0.10% | ||
| AMBA - TSEM | 60% Loosely correlated | +4.48% | ||
| KLIC - TSEM | 60% Loosely correlated | +1.59% | ||
| KLAC - TSEM | 60% Loosely correlated | -1.28% | ||
| LRCX - TSEM | 60% Loosely correlated | +0.68% | ||
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