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Microchip Technology: A Strong Revenue Growth And Dividend Play

Alpine Capital profile picture
Alpine Capital


  • Microchip’s revenue will grow significantly in the long term driven by its FPGA and microcontroller solutions.
  • The company is rapidly paying off its debt, which is driving the demand for its shares, and its share price is rising.
  • Long-term investors can accumulate the company’s shares gradually utilizing proper pullbacks.

High-tech Equipment CPU Chip

kool99/E+ via Getty Images

Microchip Technology (NASDAQ:MCHP) is a medium-growth semiconductor company with significant growth opportunities in the long run. I expect the company’s revenue will grow at a CAGR of high single-digits in the next five years driven

This article was written by

Alpine Capital profile picture
I am a growth-focused full-time investor with 20+ years of investing experience. I write on Seeking Alpha to sharpen up my stock picking skills and to share my investment ideas with Seeking Alpha readers.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (5)

2021A GAAP $1.29 is 65x P/E
Mgmt just stated “we believe we can grow sales 7% CAGR 2020-2025” It’s seems pricey for that growth imo
Can you also give GAAP earnings and corresponding P/E? Stock based comp is a real expense. “If paying your employees isn’t an expense, I don’t know what is.” Buffett
Nice write up. I retired in 2007. Bought MCHP in 2010 for the dividend, it was over 3% then. Have held it and periodically reinvested dividends. Total returns now are over 664%. Long MCHP!
Alpine Capital profile picture
@jb21236 Thank you for your comment. Happy investing.
@jb21236 Great buy. It was trading a 3x sales then.. vs 8x sales now
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