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MCHP or ON or TSEM
Which Stock Would AI Choose? Microchip Technology (MCHP) vs. ON Semiconductor (ON) vs. Tower Semiconductor (TSEM) Stock Comparison
Key Takeaways
- MCHP shares have shown resilience with recent quarterly revenue up 15.6% year-over-year to $1.19 billion, supported by strong automotive and industrial demand, though facing short-term pullbacks amid sector volatility.
- ON delivered year-to-date gains of approximately 15%, outperforming broader indices, but recent weeks reflect mixed sentiment due to leadership transitions and softer revenue trends in power solutions.
- TSEM has surged over 50% year-to-date and more than 350% over the past year, driven by record Q4 revenue of $440 million and AI data center catalysts like silicon photonics partnerships.
- All three operate in the semiconductor space with exposure to automotive, industrial, and emerging AI applications, but TSEM's specialty foundry model positions it for outsized growth in high-margin analog and photonics.
- Market caps stand at roughly $35B for MCHP, $23B for ON, and $20B for TSEM, reflecting varying scale and valuation sensitivity in recent market activity.
Introduction
Microchip Technology (MCHP), ON Semiconductor (ON), and Tower Semiconductor (TSEM) represent key players in the semiconductor sector, focusing on analog, mixed-signal, and specialty foundry solutions critical for automotive, industrial, and data center applications. This comparison analyzes their recent performance amid recovering chip demand and AI-driven tailwinds. Traders seeking short-term momentum and investors eyeing long-term growth in embedded controls and photonics will find insights into relative strengths, risks, and market positioning valuable for portfolio decisions.
MCHP Overview and Recent Performance
Microchip Technology (MCHP) is a leading provider of smart, connected, and secure embedded control solutions, including microcontrollers and analog devices for automotive, industrial, and IoT markets. In recent market activity, the company reported solid Q4 results with revenue of $1.19 billion, up 15.6% year-over-year, driven by strength in automotive and Ethernet connectivity, alongside partnerships like Hyundai. Gross margins held at 60.5% non-GAAP, with cash flow from operations at $341 million supporting stability. Stock behavior reflects broader sector volatility, with shares pulling back from highs near $83 amid inventory normalization, yet book-to-bill ratios above 1.0 signal improving demand. Sentiment has been bolstered by product launches in power modules and edge AI, positioning MCHP for recovery as end-markets rebound.
ON Overview and Recent Performance
ON Semiconductor (ON), operating as onsemi, specializes in intelligent power and sensing solutions for automotive electrification, industrial applications, and data centers. Recent performance shows year-to-date gains around 15%, outpacing the S&P 500, though shares have faced pullbacks in recent weeks amid leadership changes in its power solutions group and softer quarterly revenue trends down about 11% year-over-year. The company maintains focus on high-growth areas like silicon carbide for EVs and fast-charging, with analysts noting modest earnings growth projections. Market sentiment reflects caution on end-market challenges, but positioning in electrification and sustainable energy supports relative stability, with shares trading in the middle of their 52-week range.
TSEM Overview and Recent Performance
Tower Semiconductor (TSEM) operates as a pure-play foundry, delivering customizable analog and mixed-signal processes for RF, power management, and silicon photonics in consumer, automotive, and AI infrastructure. Recent weeks have seen explosive momentum, with shares rallying over 30% amid breakthroughs like 400 Gbps/lane data transmission with Coherent and partnerships in optical switching for AI networks. Q4 revenue hit a record $440 million, up 14% year-over-year, fueled by SiPho demand, with full-year sales at $1.57 billion. Increased CapEx of $920 million targets fivefold growth in photonics wafers. Sentiment is strongly positive on AI data center exposure, driving shares to multi-year highs despite elevated valuations.
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Head-to-Head Comparison
MCHP, ON, and TSEM share semiconductor exposure but diverge in business models: MCHP and ON emphasize integrated devices for embedded and power applications, while TSEM's foundry model enables specialized processes like SiPho for AI. Growth drivers favor TSEM's photonics amid data center booms, contrasting MCHP's steady automotive recovery and ON's EV focus. Recent momentum is strongest for TSEM (350%+ one-year), versus modest YTD gains for MCHP and ON. Risks include cyclical inventory for MCHP and ON, geopolitical factors for TSEM. Valuation sensitivity is highest for TSEM at premium multiples, while MCHP appears relatively attractive. Sector sentiment tilts toward AI enablers, creating trade-offs in stability versus upside potential.
Tickeron AI Verdict
Tickeron’s AI currently favors TSEM due to its superior trend consistency in AI photonics, multiple catalysts like record revenues and partnerships, and dominant relative positioning with over 50% YTD gains amid data center demand. While MCHP offers stability and ON balanced exposure, TSEM exhibits the highest probability of outperformance based on observable momentum and growth trajectory.
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
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 3 FA rating(s) are green whileON’s FA Score has 2 green FA rating(s), and TSEM’s FA Score reflects 2 green FA rating(s).
- MCHP’s FA Score: 3 green, 2 red.
- ON’s FA Score: 2 green, 3 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 5 TA indicator(s) are bullish while ON’s TA Score has 6 bullish TA indicator(s), and TSEM’s TA Score reflects 6 bullish TA indicator(s).
- MCHP’s TA Score: 5 bullish, 5 bearish.
- ON’s TA Score: 6 bullish, 4 bearish.
- TSEM’s TA Score: 6 bullish, 4 bearish.
Price Growth
MCHP (@Semiconductors) experienced а +10.06% price change this week, while ON (@Semiconductors) price change was +20.92% , and TSEM (@Semiconductors) price fluctuated +11.23% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +11.63%. For the same industry, the average monthly price growth was +20.79%, and the average quarterly price growth was +24.53%.
Reported Earning Dates
MCHP is expected to report earnings on May 11, 2026.
ON is expected to report earnings on May 04, 2026.
TSEM is expected to report earnings on May 18, 2026.
Industries' Descriptions
@Semiconductors (+11.63% 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 | TSEM | |
| Capitalization | 42.6B | 32.7B | 24.6B |
| EBITDA | 877M | 888M | 507M |
| Gain YTD | 24.331 | 53.296 | 92.855 |
| P/E Ratio | 86.21 | 286.24 | 116.72 |
| Revenue | 4.37B | 6B | 1.51B |
| Total Cash | 251M | 2.55B | 1.22B |
| Total Debt | 5.41B | 3.01B | 164M |
MCHP | ON | TSEM | ||
|---|---|---|---|---|
OUTLOOK RATING 1..100 | 38 | 42 | 42 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 14 Undervalued | 89 Overvalued | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 88 | 67 | 3 | |
SMR RATING 1..100 | 91 | 88 | 79 | |
PRICE GROWTH RATING 1..100 | 7 | 3 | 34 | |
P/E GROWTH RATING 1..100 | 6 | 1 | 3 | |
SEASONALITY SCORE 1..100 | 65 | 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 (14) in the Semiconductors industry is significantly better than the same rating for TSEM (88) and is significantly better than the same rating for ON (89). This means that MCHP's stock grew significantly faster than TSEM’s and significantly faster than ON’s over the last 12 months.
TSEM's Profit vs Risk Rating (3) in the Semiconductors industry is somewhat better than the same rating for ON (67) and is significantly better than the same rating for MCHP (88). This means that TSEM's stock grew somewhat faster than ON’s and significantly faster than MCHP’s over the last 12 months.
TSEM's SMR Rating (79) in the Semiconductors industry is in the same range as ON (88) and is in the same range as MCHP (91). This means that TSEM's stock grew similarly to ON’s and similarly to MCHP’s over the last 12 months.
ON's Price Growth Rating (3) in the Semiconductors industry is in the same range as MCHP (7) and is in the same range as TSEM (34). This means that ON's stock grew similarly to MCHP’s and similarly to TSEM’s over the last 12 months.
ON's P/E Growth Rating (1) in the Semiconductors industry is in the same range as TSEM (3) and is in the same range as MCHP (6). This means that ON's stock grew similarly to TSEM’s and similarly to MCHP’s over the last 12 months.
| MCHP | ON | TSEM | |
|---|---|---|---|
| RSI ODDS (%) | 3 days ago 65% | 3 days ago 78% | 3 days ago 67% |
| Stochastic ODDS (%) | 3 days ago 76% | 3 days ago 78% | 3 days ago 59% |
| Momentum ODDS (%) | 3 days ago 62% | 3 days ago 84% | 3 days ago 70% |
| MACD ODDS (%) | 3 days ago 68% | 3 days ago 72% | 4 days ago 80% |
| TrendWeek ODDS (%) | 3 days ago 66% | 3 days ago 75% | 3 days ago 70% |
| TrendMonth ODDS (%) | 3 days ago 64% | 3 days ago 75% | 3 days ago 75% |
| Advances ODDS (%) | 3 days ago 65% | 3 days ago 72% | 5 days ago 68% |
| Declines ODDS (%) | 21 days ago 73% | 21 days ago 77% | 21 days ago 61% |
| BollingerBands ODDS (%) | 3 days ago 72% | 3 days ago 80% | 3 days ago 60% |
| Aroon ODDS (%) | 3 days ago 77% | 3 days ago 77% | 3 days ago 76% |
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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% | +2.46% | ||
| MCHPP - MCHP | 96% Closely correlated | +2.29% | ||
| NXPI - MCHP | 85% Closely correlated | +1.08% | ||
| ON - MCHP | 80% Closely correlated | +3.85% | ||
| TXN - MCHP | 77% Closely correlated | +3.01% | ||
| KLIC - MCHP | 75% Closely correlated | +2.79% | ||
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