In the dynamic world of semiconductors, choosing the right company can significantly impact your investment portfolio. Today, I’ll compare Microchip Technology Incorporated (MCHP) and CEVA, Inc. (CEVA), both key players in the semiconductor industry. While Microchip focuses on embedded control solutions, CEVA specializes in wireless connectivity and smart sensing technologies. This analysis will uncover the strengths and innovative strategies of each company, helping you determine which one deserves a spot in your investment portfolio.
Table of contents
Company Overview
Microchip Technology Incorporated Overview
Microchip Technology Incorporated, trading under the ticker MCHP, is a leading provider of smart, connected, and secure embedded control solutions. Headquartered in Chandler, Arizona, and established in 1989, the company specializes in microcontrollers, microprocessors, and a range of other semiconductor products catering to various applications, including automotive, industrial, and communications. With a market capitalization of approximately $28.48B, Microchip has positioned itself as a reliable partner for system designers through its extensive portfolio, which includes memory products and development tools. The company is committed to innovation and quality, which is reflected in its diverse product offerings and a strong presence in global markets.
CEVA, Inc. Overview
CEVA, Inc., with the ticker CEVA, operates as a licensor of wireless connectivity and smart sensing technologies. Founded in 1999 and based in Rockville, Maryland, CEVA focuses on designing and licensing digital signal processors and AI processors, primarily for the semiconductor and OEM sectors. The company holds a market cap of around $494M and offers a suite of technologies aimed at enhancing connectivity and smart sensing capabilities across various industries, including IoT, automotive, and robotics. CEVA’s commitment to advancing AI and wireless technologies positions it as a significant player in the semiconductor sector, particularly in the realm of digital signal processing.
Key similarities between Microchip and CEVA include their focus on the semiconductor industry and their commitment to innovation in technology solutions. However, they differ in their business models; Microchip primarily manufactures and sells embedded control solutions, while CEVA licenses its technologies to other companies for product integration.
Income Statement Comparison
The following table provides a comparative overview of the income statements for Microchip Technology Incorporated (MCHP) and CEVA, Inc. for their most recent fiscal years.
| Metric | MCHP | CEVA |
|---|---|---|
| Revenue | 4.40B | 106.94M |
| EBITDA | 1.04B | -3.41M |
| EBIT | 290.30M | -7.55M |
| Net Income | -500K | -8.79M |
| EPS | -0.005 | -0.37 |
Interpretation of Income Statement
In the latest fiscal year, MCHP reported a significant decline in revenue, dropping from 7.63B in 2024 to 4.40B in 2025, resulting in a net income loss of 500K. CEVA, on the other hand, has consistently struggled with revenues hovering around 100M, leading to negative net income of 8.79M. Both companies exhibited stable margins; however, MCHP’s EBITDA margin suffered due to revenue loss, while CEVA’s negative EBITDA reflects ongoing operational challenges. The decline in MCHP’s performance signals a potential need for strategic adjustments, while CEVA continues to face headwinds in profitability.
Financial Ratios Comparison
The table below presents a comparison of the most recent financial metrics for Microchip Technology Incorporated (MCHP) and CEVA, Inc. (CEVA), allowing for a clear analysis of their financial health and performance.
| Metric | MCHP | CEVA |
|---|---|---|
| ROE | -0.00007 | -0.03296 |
| ROIC | -0.00027 | -0.08562 |
| P/E | -52021.39 | -84.79 |
| P/B | 3.67 | 2.79 |
| Current Ratio | 2.59 | 7.09 |
| Quick Ratio | 1.47 | 7.09 |
| D/E | 0.80 | 0.02 |
| Debt-to-Assets | 0.37 | 0.02 |
| Interest Coverage | 1.18 | 0.00 |
| Asset Turnover | 0.29 | 0.34 |
| Fixed Asset Turnover | 3.72 | 8.43 |
| Payout Ratio | -1951.40 | 0.00 |
| Dividend Yield | 3.75% | 0% |
Interpretation of Financial Ratios
MCHP shows a concerning negative ROE and ROIC, indicating potential inefficiencies in generating returns and a high P/E ratio suggests overvaluation or losses. Conversely, CEVA also presents poor returns with negative ratios, but its current and quick ratios indicate strong liquidity. However, both companies exhibit high debt levels relative to their assets, which could pose risks in adverse market conditions.
Dividend and Shareholder Returns
Microchip Technology Incorporated (MCHP) offers a dividend with a payout ratio of 48%, reflecting a sustainable distribution trend. The annual dividend yield stands at 1.87%, supported by adequate free cash flow. In contrast, CEVA, Inc. does not pay dividends, focusing instead on reinvestment for growth during its development phase. However, CEVA engages in share buybacks, indicating a commitment to returning value to shareholders. Overall, MCHP’s strategy appears more aligned with long-term value creation, while CEVA’s approach hinges on future growth potential.
Strategic Positioning
Microchip Technology Incorporated (MCHP) holds a significant market share in the semiconductor industry, particularly in microcontrollers and embedded solutions. With a market cap of approximately $28.5B, its diverse product range positions it strongly against competitors. Conversely, CEVA, Inc. (CEVA) specializes in wireless connectivity and smart sensing technologies, commanding a smaller market cap of around $494M. Both companies face competitive pressure from rapid technological advancements, necessitating continuous innovation to maintain their market positions.
Stock Comparison
In this section, I will analyze the stock price movements of Microchip Technology Incorporated (MCHP) and CEVA, Inc. over the past year, highlighting key price dynamics and trading patterns.
Trend Analysis
Microchip Technology Incorporated (MCHP) Over the past year, MCHP has experienced a price change of -37.11%. This indicates a bearish trend, characterized by a deceleration in momentum. The stock has seen notable highs at 98.23 and lows at 36.22. The standard deviation of 14.87 suggests a moderate level of volatility in its price movements. Recently, from September 14, 2025, to November 30, 2025, the stock has further declined by 18.36%, with a standard deviation of 5.34, indicating continued downward pressure.
CEVA, Inc. (CEVA) CEVA has recorded a price change of -2.7% over the year, which also reflects a bearish trend. The stock has fluctuated between a high of 34.67 and a low of 17.39. The standard deviation of 4.47 points to low to moderate volatility. In the more recent timeframe from September 14, 2025, to November 30, 2025, CEVA’s price fell by 13.09%, with a standard deviation of 2.77, indicating a slight deceleration in its downward movement.
In summary, both stocks are currently facing bearish trends with notable declines, and while MCHP shows a more significant downturn, CEVA presents a milder reduction in its stock price.
Analyst Opinions
Recent recommendations for Microchip Technology Incorporated (MCHP) have been cautious, with a rating of C- indicating a hold position due to low scores in return on equity and assets, as noted by various analysts. In contrast, CEVA, Inc. (CEVA) received a slightly better rating of C+, suggesting a hold as well, largely due to a more favorable debt-to-equity ratio. Overall, the consensus for both companies leans towards a hold for the current year, reflecting caution amidst mixed performance indicators.
Stock Grades
In this section, I present the latest stock grades for two companies, Microchip Technology Incorporated (MCHP) and CEVA, Inc. (CEVA), based on reliable data from recognized grading firms.
Microchip Technology Incorporated Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Susquehanna | Maintain | Positive | 2025-11-07 |
| Truist Securities | Maintain | Hold | 2025-11-07 |
| Citigroup | Maintain | Buy | 2025-11-07 |
| Needham | Maintain | Buy | 2025-11-07 |
| Stifel | Maintain | Buy | 2025-11-07 |
| Cantor Fitzgerald | Maintain | Neutral | 2025-11-07 |
| Wells Fargo | Maintain | Equal Weight | 2025-11-07 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-04 |
| Needham | Maintain | Buy | 2025-08-08 |
| Piper Sandler | Maintain | Overweight | 2025-08-08 |
CEVA, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Overweight | 2025-11-12 |
| Rosenblatt | Maintain | Buy | 2025-11-11 |
| Rosenblatt | Maintain | Buy | 2025-08-14 |
| Oppenheimer | Maintain | Outperform | 2025-05-09 |
| Barclays | Maintain | Overweight | 2025-05-08 |
| Rosenblatt | Maintain | Buy | 2025-05-08 |
| Rosenblatt | Maintain | Buy | 2025-04-23 |
| Rosenblatt | Maintain | Buy | 2025-02-14 |
| Barclays | Maintain | Overweight | 2025-02-14 |
| Rosenblatt | Maintain | Buy | 2025-02-11 |
Overall, both companies show a consistent trend in maintaining their grades, with MCHP receiving numerous “Buy” recommendations and CEVA sustaining several “Overweight” and “Buy” ratings. This suggests a positive sentiment towards both stocks, indicating potential stability and growth opportunities for investors.
Target Prices
The consensus target price for Microchip Technology Incorporated (MCHP) indicates potential upside from its current trading level.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Microchip Technology Incorporated | 83 | 60 | 71.33 |
Analysts expect MCHP to reach a target consensus of 71.33, which suggests a substantial upside compared to its current price of 52.87. Unfortunately, no verified target price data is available for CEVA, Inc. (CEVA), indicating limited analyst sentiment for this stock.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Microchip Technology Incorporated (MCHP) and CEVA, Inc. (CEVA), focusing on key business criteria.
| Criterion | Microchip Technology (MCHP) | CEVA, Inc. (CEVA) |
|---|---|---|
| Diversification | High (multiple product lines) | Low (focus on licensing) |
| Profitability | Moderate (net profit margin: -0.0001) | Low (net profit margin: -0.0822) |
| Innovation | Strong (continual product development) | Moderate (focus on wireless technologies) |
| Global presence | Strong (operates in multiple regions) | Moderate (primarily North America) |
| Market Share | Significant (leading in semiconductors) | Niche (specialized in DSP technologies) |
| Debt level | Moderate (debt-to-equity: 0.8) | Very low (debt-to-equity: 0.02) |
In summary, Microchip Technology shows strong diversification and market presence, although it has a negative profit margin. In contrast, CEVA holds a niche position with low debt but struggles with profitability and market presence. Investors should weigh these factors in their decision-making process.
Risk Analysis
In the table below, I outline the key risks associated with Microchip Technology Incorporated (MCHP) and CEVA, Inc. (CEVA), which can impact their operations and stock performance.
| Metric | MCHP | CEVA |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and regulatory risks, particularly in light of ongoing global supply chain challenges and regulatory changes in the semiconductor industry. CEVA, in particular, encounters higher operational and geopolitical risks due to its reliance on international markets.
Which one to choose?
When comparing Microchip Technology Incorporated (MCHP) and CEVA, Inc. (CEVA), MCHP shows a stronger overall performance based on recent financial metrics. Although MCHP experienced a significant decline in stock price (-37.11% over the past year), it has a market cap of $26.01B, robust gross profit margins (56%) and a higher net income in FY2024 ($1.91B). In contrast, CEVA, with a smaller market cap of approximately $744.99M, has struggled with negative profitability, reflected in its C+ rating and bearish stock trend.
For investors seeking stability and potential growth, MCHP appears favorable, while those interested in speculative opportunities may consider CEVA, albeit with higher risk. Both companies face industry risks, including competitive pressures and supply chain vulnerabilities.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Microchip Technology Incorporated and CEVA, Inc. to enhance your investment decisions:
