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MCHP or TSEM or TXN
Which Stock Would AI Choose? Microchip Technology (MCHP) vs. Tower Semiconductor (TSEM) vs. Texas Instruments (TXN) Stock Comparison
Key Takeaways
- MCHP trades around $66 with a $35.6B market cap, showing YTD gains of about 4% amid recent share weakness but raised guidance signaling recovery in industrial and auto demand.
- TSEM at $119 with $13.4B market cap leads 1-year performance over 230%, driven by AI photonics deals like Nvidia and silicon photonics expansions, though YTD near flat.
- TXN around $199 with $181B market cap posts strongest YTD at 15%, bolstered by robotics/AI partnerships with Nvidia and factory market recovery, offering 2.86% dividend yield.
- All three operate in analog/semiconductor space, but TSEM as foundry gains from AI tailwinds, while IDMs MCHP and TXN face inventory cycles.
- Relative momentum favors TXN for stability, TSEM for growth; valuations show MCHP forward P/E at 25x potentially undervalued.
- Semiconductor sector exposure highlights trade-offs: AI catalysts for TSEM, diversified end-markets for TXN.
Introduction
This comparison examines MCHP, TSEM, and TXN, three key players in the analog and mixed-signal semiconductor space. These stocks appeal to investors tracking sector recovery amid AI demand, industrial normalization, and automotive electrification. Traders focused on relative performance may note contrasts in momentum, with foundry dynamics differing from integrated device manufacturers. Amid broader market volatility, understanding their business models, recent catalysts, and valuation sensitivities aids in assessing stock positioning for portfolios emphasizing technology hardware and semiconductors.
MCHP Overview and Recent Performance
Microchip Technology Incorporated (MCHP), headquartered in Chandler, Arizona, designs and manufactures microcontrollers, analog, and mixed-signal semiconductors for industrial, automotive, consumer, and aerospace markets. In recent market activity, shares around $66 have faced pressure, with monthly declines near 17% linked to high inventory levels and valuation concerns. Sentiment has improved on raised fiscal Q4 guidance to the high end of $1.24-1.28 billion in sales, reflecting strong bookings and a book-to-bill ratio above 1.0. Expansions in security platforms and new mixed-signal ICs for defense actuation underscore long-term positioning, though fund exits highlight short-term caution. YTD returns approximate 4%, with forward P/E at 25x suggesting relative value amid recovery signals.
TSEM Overview and Recent Performance
Tower Semiconductor Ltd. (TSEM), an Israel-based independent foundry, specializes in high-value analog ICs using platforms like SiGe, RF CMOS, and silicon photonics for AI, automotive, and industrial applications. Recent weeks feature partnerships boosting sentiment, including Lightwave Logic for high-speed modulators and Salience Labs for optical switches in data centers. Q4 revenue hit record $440 million, up 14% YoY, fueled by AI infrastructure demand. Shares near $119 reflect 1-year gains over 230%, though recent volatility shows monthly dips around 14%. YTD performance hovers near flat, with P/E at 62x premium tied to photonics growth and multi-fab capacity in Israel, U.S., and Japan. Analyst targets average $159, signaling upside potential.
TXN Overview and Recent Performance
Texas Instruments Incorporated (TXN), based in Dallas, leads in analog chips and embedded processors for industrial, automotive, and communications. Recent developments include a Nvidia partnership for humanoid robot deployment and AI-ready microcontrollers, alongside factory/automation recovery. Shares around $199 mark YTD gains of 15%, outperforming peers, with stable dividend yield at 2.86%. Monthly pullbacks around 10% lack clear catalysts but align with sector rotation; longer-term, 1-year returns near 15%. P/E stands at 37x, supported by diversified markets and free cash flow inflection. Analyst consensus targets $222, reflecting confidence in end-market resilience.
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Head-to-Head Comparison
MCHP and TXN, as IDMs, emphasize proprietary designs for broad end-markets, contrasting TSEM's foundry model serving fabless clients. Growth drivers diverge: TSEM leverages AI photonics (Nvidia deals), while TXN taps robotics/automation and MCHP industrial normalization. Recent momentum shows TXN leading YTD (15%), TSEM 1-year dominance (230%), MCHP lagging monthly. Risks include inventory for IDMs, geopolitics for TSEM. Valuation sensitivity: MCHP cheapest forward P/E (25x), TXN balanced (37x, dividends), TSEM premium (62x). Market sentiment favors AI exposure but weighs cyclicality.
Tickeron AI Verdict
Tickeron’s AI currently favors TXN for its trend consistency, YTD leadership, diversified catalysts like Nvidia robotics, and relative stability in a volatile semi sector. Probabilistic edge stems from lower risk profile versus TSEM's growth volatility and MCHP's inventory headwinds, positioning it strongest for sustained positioning amid recovery.
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 whileTSEM’s FA Score has 2 green FA rating(s), and TXN’s FA Score reflects 4 green FA rating(s).
- MCHP’s FA Score: 3 green, 2 red.
- TSEM’s FA Score: 2 green, 3 red.
- TXN’s FA Score: 4 green, 1 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 TSEM’s TA Score has 3 bullish TA indicator(s), and TXN’s TA Score reflects 6 bullish TA indicator(s).
- MCHP’s TA Score: 5 bullish, 5 bearish.
- TSEM’s TA Score: 3 bullish, 4 bearish.
- TXN’s TA Score: 6 bullish, 4 bearish.
Price Growth
MCHP (@Semiconductors) experienced а +10.06% price change this week, while TSEM (@Semiconductors) price change was +11.22% , and TXN (@Semiconductors) price fluctuated +7.03% 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.
TSEM is expected to report earnings on May 18, 2026.
TXN is expected to report earnings on Apr 22, 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 | TSEM | TXN | |
| Capitalization | 42.6B | 24.6B | 209B |
| EBITDA | 877M | 507M | 8.25B |
| Gain YTD | 24.331 | 92.846 | 33.333 |
| P/E Ratio | 86.21 | 116.72 | 42.17 |
| Revenue | 4.37B | 1.51B | 17.7B |
| Total Cash | 251M | 1.22B | 4.88B |
| Total Debt | 5.41B | 164M | 14B |
MCHP | TSEM | TXN | ||
|---|---|---|---|---|
OUTLOOK RATING 1..100 | 25 | 28 | 22 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 14 Undervalued | 89 Overvalued | 14 Undervalued | |
PROFIT vs RISK RATING 1..100 | 88 | 3 | 48 | |
SMR RATING 1..100 | 91 | 79 | 32 | |
PRICE GROWTH RATING 1..100 | 10 | 34 | 13 | |
P/E GROWTH RATING 1..100 | 6 | 3 | 25 | |
SEASONALITY SCORE 1..100 | 75 | 50 | 65 |
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 in the same range as TXN (14) and is significantly better than the same rating for TSEM (89). This means that MCHP's stock grew similarly to TXN’s and significantly faster than TSEM’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 TXN (48) and is significantly better than the same rating for MCHP (88). This means that TSEM's stock grew somewhat faster than TXN’s and significantly faster than MCHP’s over the last 12 months.
TXN's SMR Rating (32) in the Semiconductors industry is somewhat better than the same rating for TSEM (79) and is somewhat better than the same rating for MCHP (91). This means that TXN's stock grew somewhat faster than TSEM’s and somewhat faster than MCHP’s over the last 12 months.
MCHP's Price Growth Rating (10) in the Semiconductors industry is in the same range as TXN (13) and is in the same range as TSEM (34). This means that MCHP's stock grew similarly to TXN’s and similarly to TSEM’s over the last 12 months.
TSEM's P/E Growth Rating (3) in the Semiconductors industry is in the same range as MCHP (6) and is in the same range as TXN (25). This means that TSEM's stock grew similarly to MCHP’s and similarly to TXN’s over the last 12 months.
| MCHP | TSEM | TXN | |
|---|---|---|---|
| RSI ODDS (%) | 2 days ago 65% | 2 days ago 67% | 2 days ago 69% |
| Stochastic ODDS (%) | 2 days ago 76% | 2 days ago 59% | 2 days ago 66% |
| Momentum ODDS (%) | 2 days ago 62% | N/A | 2 days ago 55% |
| MACD ODDS (%) | 2 days ago 68% | N/A | 2 days ago 52% |
| TrendWeek ODDS (%) | 2 days ago 66% | 2 days ago 70% | 2 days ago 57% |
| TrendMonth ODDS (%) | 2 days ago 64% | 2 days ago 75% | 2 days ago 52% |
| Advances ODDS (%) | 2 days ago 65% | 4 days ago 68% | 2 days ago 55% |
| Declines ODDS (%) | 20 days ago 73% | 20 days ago 61% | 20 days ago 56% |
| BollingerBands ODDS (%) | 2 days ago 72% | 2 days ago 60% | 2 days ago 69% |
| Aroon ODDS (%) | 2 days ago 77% | 2 days ago 76% | 2 days ago 45% |
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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 97% 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 | 97% Closely correlated | +2.32% | ||
| NXPI - MCHP | 85% Closely correlated | +1.08% | ||
| ON - MCHP | 80% Closely correlated | +3.85% | ||
| TXN - MCHP | 76% Closely correlated | +3.01% | ||
| ADI - MCHP | 76% Closely correlated | +4.99% | ||
More | ||||
TSEM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSEM has been loosely correlated with MTSI. These tickers have moved in lockstep 64% of the time. This A.I.-generated data suggests there is some statistical probability that if TSEM jumps, then MTSI could also see price increases.
| Ticker / NAME | Correlation To TSEM | 1D Price Change % | ||
|---|---|---|---|---|
| TSEM | 100% | +5.44% | ||
| MTSI - TSEM | 64% Loosely correlated | +5.95% | ||
| AMKR - TSEM | 61% Loosely correlated | +7.11% | ||
| AMBA - TSEM | 60% Loosely correlated | +1.62% | ||
| KLIC - TSEM | 60% Loosely correlated | +2.79% | ||
| KLAC - TSEM | 60% Loosely correlated | +3.26% | ||
More | ||||
TXN and
Correlation & Price change
A.I.dvisor indicates that over the last year, TXN has been closely correlated with MCHP. These tickers have moved in lockstep 82% of the time. This A.I.-generated data suggests there is a high statistical probability that if TXN jumps, then MCHP could also see price increases.
| Ticker / NAME | Correlation To TXN | 1D Price Change % | ||
|---|---|---|---|---|
| TXN | 100% | +3.01% | ||
| MCHP - TXN | 82% Closely correlated | +2.46% | ||
| MCHPP - TXN | 78% Closely correlated | +2.32% | ||
| NXPI - TXN | 75% Closely correlated | +1.08% | ||
| ADI - TXN | 74% Closely correlated | +4.99% | ||
| ON - TXN | 70% Closely correlated | +3.85% | ||
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