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Here's How Much You'd Have If You Invested $1000 in Microchip Technology a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Microchip Technology (MCHP - Free Report) ten years ago? It may not have been easy to hold on to MCHP for all that time, but if you did, how much would your investment be worth today?
Microchip Technology's Business In-Depth
With that in mind, let's take a look at Microchip Technology's main business drivers.
Chandler, AZ-based, Microchip Technology Inc. develops and manufactures microcontrollers, memory and analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks.
Microchip reported total revenues of $5.27 billion in fiscal 2020.
The company has four major product lines:
Microcontrollers (53.4% of fiscal 2020 revenues): This product portfolio comprises 8-bit, 16-bit and 32-bit PIC microcontrollers and 16-bit dsPIC digital signal controllers. Microchip's expanding product portfolio driven by new microcontrollers’ roll outs aids it in expanding customer base and sustain its leading position in the market.
Analog (28.7%): These products consist of several families with approximately 800 power management, linear, mixed-signal, thermal management, RF Linear drivers, safety and security, and interface products. The line of mixed-signal products primarily includes data converters that convert data from analog to digital or vice versa.
Licensing, memory and other, or LMO (10.8%): Technology licensing revenue comprises a combination of license fees and royalties related to SuperFlash technology, and fees for engineering services. Microchip licenses its SuperFlash technology to foundries, integrated device manufacturers and design partners across the world.
FPGA (7.1%): The product line was primarily acquired as part of Microsemi acquisition.
In fiscal 2020, Asia, Europe and Americas contributed 52.1%, 22% and 25.9%, respectively to net sales.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Microchip Technology a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2011 would be worth $3,999.49, or a gain of 299.95%, as of April 26, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 212.56% and gold's return of 13.68% over the same time frame.
Analysts are forecasting more upside for MCHP too.
Microchip is well-positioned to benefit from strength in its analog and microcontroller businesses. The company is likely to gain from dominance of its 8, 16 and 32-bit microcontrollers. Strategic acquisitions like Microsemi and Atmel have expanded the product portfolio, which augurs well for the longer haul. The company is also benefiting from recovery in demand across industrial, automotive and consumer end-markets, on reopening of economies and easing shelter-in-place guidelines, globally. Nevertheless, weakness in enterprise spending and supply-chain disruptions owing to coronavirus crisis are headwinds, at least in the near term. Significant debt burden along with increasing expenses on product development and susceptibility to forex headwinds are concerns. Shares of Microchip have underperformed the industry in the year-to-date period.
The stock has jumped 6.27% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2021; the consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Microchip Technology a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Microchip Technology (MCHP - Free Report) ten years ago? It may not have been easy to hold on to MCHP for all that time, but if you did, how much would your investment be worth today?
Microchip Technology's Business In-Depth
With that in mind, let's take a look at Microchip Technology's main business drivers.
Chandler, AZ-based, Microchip Technology Inc. develops and manufactures microcontrollers, memory and analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks.
Microchip reported total revenues of $5.27 billion in fiscal 2020.
The company has four major product lines:
Microcontrollers (53.4% of fiscal 2020 revenues): This product portfolio comprises 8-bit, 16-bit and 32-bit PIC microcontrollers and 16-bit dsPIC digital signal controllers. Microchip's expanding product portfolio driven by new microcontrollers’ roll outs aids it in expanding customer base and sustain its leading position in the market.
Analog (28.7%): These products consist of several families with approximately 800 power management, linear, mixed-signal, thermal management, RF Linear drivers, safety and security, and interface products. The line of mixed-signal products primarily includes data converters that convert data from analog to digital or vice versa.
Licensing, memory and other, or LMO (10.8%): Technology licensing revenue comprises a combination of license fees and royalties related to SuperFlash technology, and fees for engineering services. Microchip licenses its SuperFlash technology to foundries, integrated device manufacturers and design partners across the world.
FPGA (7.1%): The product line was primarily acquired as part of Microsemi acquisition.
In fiscal 2020, Asia, Europe and Americas contributed 52.1%, 22% and 25.9%, respectively to net sales.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Microchip Technology a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2011 would be worth $3,999.49, or a gain of 299.95%, as of April 26, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 212.56% and gold's return of 13.68% over the same time frame.
Analysts are forecasting more upside for MCHP too.
Microchip is well-positioned to benefit from strength in its analog and microcontroller businesses. The company is likely to gain from dominance of its 8, 16 and 32-bit microcontrollers. Strategic acquisitions like Microsemi and Atmel have expanded the product portfolio, which augurs well for the longer haul. The company is also benefiting from recovery in demand across industrial, automotive and consumer end-markets, on reopening of economies and easing shelter-in-place guidelines, globally. Nevertheless, weakness in enterprise spending and supply-chain disruptions owing to coronavirus crisis are headwinds, at least in the near term. Significant debt burden along with increasing expenses on product development and susceptibility to forex headwinds are concerns. Shares of Microchip have underperformed the industry in the year-to-date period.
The stock has jumped 6.27% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2021; the consensus estimate has moved up as well.