In the ever-evolving semiconductor industry, Microchip Technology Incorporated (MCHP) and CEVA, Inc. (CEVA) stand out as two players with distinct yet overlapping innovations. Both companies are leveraging advanced technologies to cater to the growing demand for smart devices and connectivity solutions. While Microchip focuses on embedded control solutions, CEVA excels in licensing wireless connectivity and AI technologies. Join me as we explore which of these companies presents a more compelling opportunity for investors seeking growth in this dynamic sector.
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Company Overview
Microchip Technology Incorporated Overview
Microchip Technology Incorporated (MCHP) is a prominent player in the semiconductor industry, headquartered in Chandler, Arizona. Founded in 1989, the company specializes in developing and manufacturing a wide range of embedded control solutions. Its product portfolio includes microcontrollers, microprocessors, and analog devices that cater to various applications across automotive, industrial, and communications sectors. With a market capitalization of approximately $28.87B, Microchip is well-positioned to capitalize on the growing demand for smart, connected technologies. The company’s commitment to innovation is evident in its offerings, which include development tools, memory products, and engineering services, ensuring it remains a competitive force in the global market.
CEVA, Inc. Overview
CEVA, Inc. (CEVA) operates as a licensor of wireless connectivity and smart sensing technologies, focusing on the design and licensing of digital signal processors (DSPs) and AI processors. Established in 1999 and based in Rockville, Maryland, the company serves a diverse range of industries, including IoT, automotive, and consumer electronics. With a market cap of around $518.54M, CEVA provides integrated IP solutions for 5G processing, imaging, and computer vision applications. The company’s strategic focus on licensing its advanced technologies enables it to partner with leading semiconductor and OEM companies worldwide, establishing a strong market presence.
Key similarities and differences
Both Microchip Technology and CEVA operate within the semiconductor industry, yet they focus on different aspects. Microchip emphasizes manufacturing and selling embedded control solutions, while CEVA primarily licenses technologies for wireless connectivity and smart sensing. Although both companies cater to high-tech markets, their business models reflect distinct approaches to innovation and product delivery.
Income Statement Comparison
Below is a comparative overview of the most recent income statements for Microchip Technology Incorporated (MCHP) and CEVA, Inc. This table highlights essential metrics that can assist in evaluating their financial health.
| Metric | Microchip Technology (MCHP) | CEVA, Inc. (CEVA) |
|---|---|---|
| Market Cap | 28.87B | 0.52B |
| Revenue | 4.40B | 0.11B |
| EBITDA | 1.04B | -0.003B |
| EBIT | 0.29B | -0.01B |
| Net Income | -0.0005B | -0.0088B |
| EPS | -0.005 | -0.37 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, MCHP reported a significant drop in revenue from 7.63B in 2024 to 4.40B in 2025, indicating a sharp decline in sales performance. CEVA also faced challenges, with revenue only slightly increasing from 0.097B in 2023 to 0.11B in 2024, but it continues to struggle with negative net income and margins. Both companies are currently experiencing profitability issues, reflected in their negative net income figures, emphasizing the need for strategic adjustments to enhance operational efficiency and revenue generation moving forward.
Financial Ratios Comparison
Below is a comparative table of the most recent financial metrics for Microchip Technology Incorporated (MCHP) and CEVA, Inc. (CEVA):
| 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% | 0.00% |
Interpretation of Financial Ratios
The financial ratios reveal a stark contrast between MCHP and CEVA. MCHP shows negative returns on equity and investment, indicating underlying profitability issues. Conversely, CEVA demonstrates significantly higher liquidity ratios, suggesting better short-term financial health. However, both companies face challenges, particularly in terms of profitability, with negative P/E ratios for MCHP and substantial losses reflected in CEVA’s metrics. Investors should proceed with caution, considering the inherent risks in both companies.
Dividend and Shareholder Returns
Microchip Technology (MCHP) currently pays a dividend with a yield of 1.87% and a payout ratio of 47.8%. The company has demonstrated a stable trend in dividend payments, which is supported by adequate free cash flow coverage. However, with a declining net profit margin, I remain cautious about the sustainability of these distributions.
In contrast, CEVA, Inc. does not pay dividends as it focuses on reinvestment for growth, reflecting a high growth strategy. Despite this, CEVA has engaged in share buybacks, indicating a commitment to returning value to shareholders. While both strategies have merits, MCHP’s dividend approach may better support long-term value creation, assuming its profitability improves.
Strategic Positioning
Microchip Technology (MCHP) holds a significant market share in the semiconductor industry, particularly in embedded control solutions, with a market cap of $28.87B. Competitive pressures from companies like CEVA, which focuses on wireless connectivity technologies, are notable, especially given CEVA’s smaller market cap of $518M. Both companies face ongoing technological disruption as advancements in AI and IoT continue to evolve, necessitating agile strategies to maintain their market positions.
Stock Comparison
In the current market landscape, analyzing stock price movements provides essential insights for informed investment decisions. Over the past year, both Microchip Technology Incorporated (MCHP) and CEVA, Inc. have experienced significant price fluctuations, reflecting their respective trading dynamics.
Trend Analysis
Microchip Technology Incorporated (MCHP) Over the past year, MCHP has experienced a price change of -36.21%. This substantial decline indicates a bearish trend, characterized by deceleration in price movements. The stock reached a high of 98.23 and a low of 36.22, showcasing notable volatility with a standard deviation of 14.87. Recently, from September 14, 2025, to November 30, 2025, the stock further declined by 17.19%, with a standard deviation of 5.25, reinforcing the prevailing bearish sentiment.
CEVA, Inc. In contrast, CEVA has seen a modest price increase of 2.37% over the same period, indicating a bullish trend. However, the acceleration is decelerating, as evidenced by the recent trend analysis. The stock recorded a high of 34.67 and a low of 17.39, with a standard deviation of 4.47. In the recent timeframe from September 14, 2025, to November 30, 2025, CEVA’s price decreased by 8.56%, accompanied by a standard deviation of 2.63, reflecting a shift towards a more cautious market sentiment.
Investors should evaluate these trends carefully, considering the volatility and overall market dynamics before making investment decisions.
Analyst Opinions
Recent analyst recommendations for Microchip Technology Incorporated (MCHP) indicate a cautious stance with a rating of C-. Analysts emphasize concerns over return on equity and debt-to-equity ratios, suggesting a hold position. In contrast, CEVA, Inc. (CEVA) has garnered a slightly more favorable C+ rating, with analysts recommending a hold due to better debt management metrics. Overall, the consensus for both companies leans towards a hold for the current year, reflecting a cautious outlook amidst economic uncertainties.
Stock Grades
I have analyzed the current stock grades from reliable grading companies for two companies: Microchip Technology Incorporated (MCHP) and CEVA, Inc. Here’s a summary of their ratings.
Microchip Technology Incorporated Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | maintain | Hold | 2025-11-07 |
| Susquehanna | maintain | Positive | 2025-11-07 |
| Citigroup | maintain | Buy | 2025-11-07 |
| Stifel | maintain | Buy | 2025-11-07 |
| Wells Fargo | maintain | Equal Weight | 2025-11-07 |
| Cantor Fitzgerald | maintain | Neutral | 2025-11-07 |
| Needham | maintain | Buy | 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 |
| Rosenblatt | maintain | Buy | 2025-05-08 |
| Barclays | maintain | Overweight | 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 |
Both companies show a trend of maintaining their grades across various analysts, indicating stable performance and sentiment in the market. Notably, MCHP has a mix of “Buy” and “Hold” ratings, while CEVA consistently maintains higher ratings such as “Overweight” and “Outperform.” This suggests that CEVA might be viewed more favorably in the current market climate.
Target Prices
Currently, there is verified target price data for Microchip Technology Incorporated (MCHP), while data for CEVA, Inc. is unavailable.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Microchip Technology Incorporated | 83 | 60 | 71.33 |
Analysts anticipate a target price consensus of $71.33 for MCHP, which is significantly above the current price of $53.58, indicating potential upside. Unfortunately, no verified target price data is available for CEVA, Inc.
Strengths and Weaknesses
The table below outlines the strengths and weaknesses of Microchip Technology Incorporated (MCHP) and CEVA, Inc. (CEVA) based on the most recent financial data.
| Criterion | Microchip Technology (MCHP) | CEVA, Inc. (CEVA) |
|---|---|---|
| Diversification | Strong across sectors like automotive and industrial | Limited to wireless and smart sensing technologies |
| Profitability | Positive gross margin of 56% | Negative net margin at -8% |
| Innovation | Robust R&D in microcontrollers and FPGAs | Focus on AI and DSP technology |
| Global presence | Established in Americas, Europe, and Asia | Primarily North America and Europe |
| Market Share | Significant in the semiconductor industry | Growing but smaller market presence |
| Debt level | Moderate debt-to-equity ratio at 0.8 | Very low debt-to-equity ratio at 0.02 |
Key takeaways: Microchip Technology displays strong profitability and diversification, while CEVA focuses on innovation but struggles with profitability and a limited market presence. As an investor, consider the balance between growth potential and financial stability.
Risk Analysis
The following table outlines the key risks associated with Microchip Technology Incorporated (MCHP) and CEVA, Inc. (CEVA) as of 2025.
| Metric | MCHP | CEVA |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | High |
| Operational Risk | High | Moderate |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
In synthesizing the risks, both companies face significant market and regulatory risks, particularly due to the volatile semiconductor industry. CEVA has a higher exposure to operational and geopolitical risks, making it crucial for investors to assess these factors carefully in their investment decisions.
Which one to choose?
When comparing Microchip Technology Incorporated (MCHP) and CEVA, Inc. (CEVA), MCHP shows a stronger financial performance with a market cap of 26.01B and solid revenue figures, reporting 4.40B in revenue for FY 2025. However, MCHP’s stock trend has been bearish, with a price change of -36.21% over the last year, and its current rating is C-. In contrast, CEVA has a market cap of 0.75B and has exhibited a bullish trend with a 2.37% price change, but its overall financial health is weaker, reflected in its C+ rating.
Investors prioritizing growth may prefer CEVA for its positive trend and potential upside, while those focusing on established performance might lean toward MCHP, despite its recent struggles. Both companies face risks such as market dependence and competition in the semiconductor industry.
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:
