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TXN
Texas Instruments Incorporated · Technology
$322.86
+6.80% this month
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MCHP
Microchip Technology Incorporated · Technology
$99.77
+8.67% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
TXN
3
MCHP
2
Comparison scoreboard
TXN LEADS 3/5AI Score
TXN ✓55.9
MCHP 53.7
1Y Return
TXN ✓+63.32%
MCHP +47.39%
Fwd P/E
TXN 34.27
MCHP ✓24.26
Target Up.
TXN -8.81%
MCHP ✓+13.22%
Op. Margin
TXN ✓37.82%
MCHP 17.07%
Metrics last refreshed: 6/22/2026
Quick take
TXN vs MCHP Stock Comparison: AI Score, Valuation, Performance and Upside
TI and Microchip both address embedded systems markets — TI through its broad analog and embedded processor portfolio, Microchip through its MCU-centric solution selling approach. Both are experiencing cyclical industrial downturns, but from different balance sheet positions: TI has a clean balance sheet investing in capacity, while Microchip has acquisition-related leverage requiring active debt reduction.
TXN vs MCHP is a comparison of the broadest analog IC manufacturer (TI) against the embedded MCU solutions specialist (Microchip) — both benefit from industrial recovery but TI offers a cleaner balance sheet and manufacturing cost advantage while Microchip offers deeper MCU customer relationships and leverage to the cyclical recovery.
Live analysis · updated 6/22/2026
TXN holds the edge across 3 of 5 key metrics in this comparison. TXN has delivered stronger 1-year price return (+63.32% vs +47.39%), though MCHP trades at the lower forward P/E (24.26x vs 34.27x). On fundamentals, MCHP is growing revenue faster (35.10%), while TXN maintains the higher operating margin (37.82%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for MCHP (+13.22%) than for TXN (-8.81%).
Normalized 1Y performance
TXN
MCHP
Recent returns
TXN
MCHP
Analyst price targets & sentiment
TXN · 31 analysts
STRONG BUYHOLDSTRONG SELL
Hold (2.6/5.0)
Price target range
analyst low$125.00
analyst mean$294.41
current price$322.86
-8.8% upside to analyst mean
MCHP · 23 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.8/5.0)
Price target range
analyst low$50.00
analyst mean$112.96
current price$99.77
+13.2% upside to analyst mean
Who should consider this stock?
TXN may suit investors who:
- →prefer the world's largest analog IC manufacturer with the broadest portfolio and lowest-cost 300mm manufacturing
- →value 20+ consecutive years of dividend growth as evidence of capital return discipline
- →want analog semiconductor exposure with maximum customer diversification across 100,000+ customers
- →are comfortable with near-term free cash flow compression from the multi-year fab capacity expansion
MCHP may suit investors who:
- →prefer a focused embedded microcontroller specialist with deep industrial and automotive customer design-in relationships
- →value the cyclical recovery upside from one of the deepest inventory corrections in recent MCU history
- →want exposure to the most levered recovery in embedded semiconductors if industrial capex rebounds
- →are comfortable with acquisition leverage on the balance sheet and uncertainty around dividend restoration timing
Performance & AI score
| Metric | TXN | MCHP |
|---|---|---|
| AI score | 55.9 | 53.7 |
| AI rank | #243 | #295 |
| Latest close | $322.86 | $99.77 |
| 1M return | +6.80% | +8.67% |
| 6M return | +85.03% | +55.91% |
| 1Y return | +63.32% | +47.39% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | TXN | MCHP |
|---|---|---|
| 1Y ago | $16.28K (+62.8%) started 2025-06-18 | $14.67K (+46.7%) started 2025-06-18 |
| 5Y ago | $21.93K (+119.3%) started 2021-06-21 | $15.63K (+56.3%) started 2021-06-21 |
| 10Y ago | $87.85K (+778.5%) started 2016-06-20 | $53.02K (+430.2%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | TXN | MCHP |
|---|---|---|
| Market cap | $293.83B | $54.08B |
| Trailing P/E | 55.28 | 453.50 |
| Forward P/E | 34.27 | 24.26 |
| Price/Sales | 10.89 | 8.00 |
| EV/Revenue | 16.42 | 12.62 |
| Analyst target | $294.41 | $112.96 |
| Target upside | -8.81% | +13.22% |
Growth, profitability & risk
| Metric | TXN | MCHP |
|---|---|---|
| Revenue growth | 18.60% | 35.10% |
| Earnings growth | 31.30% | -81.60% |
| EPS growth | +31.30% | -81.60% |
| FCF margin | +5.79% | +24.19% |
| Operating margin | 37.82% | 17.07% |
| Profit margin | 29.11% | 4.88% |
| ROIC proxy | 32.35% | 3.40% |
| Return on equity | 32.35% | 3.40% |
| Dividend yield | 1.76% | 1.82% |
| Beta | 1.31 | 1.73 |
| Debt/equity | 83.74 | 87.72 |
| Current ratio | 4.46 | 2.09 |
| Quick ratio | 2.83 | 1.00 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
TXN max drawdown30.70%
MCHP max drawdown34.87%
TXN max wkly drop14.60%
MCHP max wkly drop13.22%
5Y risk snapshot
TXN max drawdown33.41%
MCHP max drawdown63.77%
TXN max wkly drop17.97%
MCHP max wkly drop27.13%
10Y risk snapshot
TXN max drawdown33.41%
MCHP max drawdown63.77%
TXN max wkly drop17.97%
MCHP max wkly drop29.72%
Performance metrics by period
| Period | Metric | TXN | MCHP |
|---|---|---|---|
| 1Y | Growth | +62.77% | +46.68% |
| CAGR | +62.89% | +46.76% | |
| Sharpe ratio | 1.29 | 0.98 | |
| Max drawdown | 30.70% | 34.87% | |
| Max daily drop | 13.34% | 8.28% | |
| Max wkly drop | 14.60% | 13.22% | |
| 5Y | Growth | +94.51% | +45.09% |
| CAGR | +14.26% | +7.74% | |
| Sharpe ratio | 0.43 | 0.29 | |
| Max drawdown | 33.41% | 63.77% | |
| Max daily drop | 13.34% | 16.80% | |
| Max wkly drop | 17.97% | 27.13% | |
| 10Y | Growth | +565.78% | +348.89% |
| CAGR | +20.89% | +16.21% | |
| Sharpe ratio | 0.62 | 0.46 | |
| Max drawdown | 33.41% | 63.77% | |
| Max daily drop | 13.34% | 20.29% | |
| Max wkly drop | 17.97% | 29.72% |
Business comparison
| Category | TXN | MCHP |
|---|---|---|
| Company | Texas Instruments Incorporated | Microchip Technology Incorporated |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| Core business | Texas Instruments is the world's largest analog semiconductor company and a major embedded processor (microcontroller and DSP) manufacturer. TI serves over 100,000 customers across industrial, automotive, personal electronics, communications, and enterprise markets. Its strategy emphasizes 300mm manufacturing cost advantages, the broadest analog portfolio in the industry, and direct distribution that captures more margin than channel sales. TI is in a multi-year $15B+ fab expansion for long-term capacity. | Microchip Technology is the #3 global microcontroller manufacturer (behind Renesas and STM32), serving industrial, automotive, consumer, aerospace, and defense customers with PIC/AVR/SAM microcontrollers, FPGA-adjacent devices (former Microsemi), and analog ICs from the ATMEL and SST acquisitions. Microchip's strategy emphasizes total system solutions and multi-year design-in relationships with industrial customers. The company has grown largely through acquisitions financed with debt, and is currently in a leverage reduction phase. |
| Investor focus | Investors track free cash flow generation, 300mm fab utilization rates, revenue recovery from the industrial and automotive inventory correction, and the long-term capital return program that includes 20+ consecutive years of dividend growth. | Investors track microcontroller revenue recovery from the severe industrial inventory correction that began in 2023, debt reduction pace, gross margin recovery toward historical 65%+ levels, and dividend growth resumption after the inventory-driven suspension period. |
TXN strengths
- →Broadest analog IC portfolio in the industry with 80,000+ products serving the most diversified customer base
- →300mm CMOS analog manufacturing gives TI the lowest cost structure for high-volume analog products
- →20+ year track record of consecutive dividend growth, returning substantially all free cash flow to shareholders
MCHP strengths
- →Strong embedded microcontroller franchises (PIC, AVR) with long-standing customer loyalty and broad industrial design-in base
- →Acquisition of Microsemi added FPGAs and space-grade electronics for defense and aerospace with long product lifecycles
- →Direct-to-customer model with application engineering support creates sticky customer relationships and reduces price sensitivity
Risks to watch — TXN
- →Multi-year $15B+ fab investment is compressing near-term free cash flow and ROIC significantly
- →Industrial and automotive inventory correction has been deeper and longer than expected, weighing on revenue
- →MCU exposure is smaller than Microchip's — TI's microcontroller business is meaningful but not the primary identity
Risks to watch — MCHP
- →Industrial inventory correction has been particularly severe for Microchip, with revenue declining over 40% from peak levels
- →Acquisition-financed growth left the balance sheet with significant debt that constrains capital allocation flexibility
- →Renesas and STMicro compete aggressively in core MCU markets, while RISC-V based alternatives are emerging at lower cost points
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