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MCHP Expands 48V Power Portfolio: Can It Outpace TXN & ADI?
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Key Takeaways
Microchip Technology expands its 48V power portfolio with new digital power monitors.
MCHP expects total data-center revenues of about $1 billion in 2026, up roughly 69% year over year.
MCHP faces competition from TXN and ADI in high-voltage data-center power systems.
Microchip Technology (MCHP - Free Report) is strengthening its position in power management as demand for efficient power delivery and monitoring rises across Artificial Intelligence (AI) data centers, automotive, industrial and communications applications. The company’s analog portfolio spans power management, high-voltage products, thermal management, MOSFETs, gate drivers and mixed-signal solutions. This broad portfolio supports MCHP’s Total System Solution strategy across microcontrollers, microprocessors, analog, FPGA, memory and connectivity products, while helping it compete with Texas Instruments (TXN - Free Report) and Analog Devices (ADI - Free Report) in power management applications. MCHP also identifies AI/ML, data centers, edge computing, networking and connectivity as key growth areas.
Building on this foundation, Microchip Technology introduced the PAC1761 and PAC1861 families of 65V energy-aware digital power monitors for 48V architectures. The devices measure voltage, current, power and accumulated energy while offering transient protection, helping improve power efficiency, system reliability and energy visibility. The launch broadens MCHP’s exposure to applications such as AI servers, networking equipment, automotive systems and industrial infrastructure. The company already targets power supplies, smart meters and energy monitoring, storage and server systems, and scale-up and scale-across AI infrastructure.
The expansion is particularly relevant to MCHP’s growing data-center business. Data centers represented 17.1% of first-quarter fiscal 2027 revenues, while data-center sales surged 97.8% year over year. Management said its data-center exposure spans power-management analog products, mixed-signal products, microcontrollers, security products, FPGAs, timing, memory, PCIe switches and storage controllers. MCHP revenues from catalog products sold into data centers are expected to increase from about $288 million in calendar 2025 to roughly $500 million in 2026. Including the Data Center Solutions business, MCHP expects total data-center revenues of about $1 billion in 2026, up roughly 69% year over year.
Management expects design wins across power management, mixed-signal, storage, security and connectivity products to support further data-center growth in 2027 and beyond. MCHP’s catalog products are often designed into systems through power-supply manufacturers, module makers and card suppliers, giving the company indirect exposure to hyperscaler infrastructure deployments.
MCHP Faces Tough Competition
Texas Instruments is intensifying competition with MCHP through its broad Analog and Embedded Processing portfolios. TXN highlighted that data-center revenues doubled year over year in the second quarter of 2026. Management also highlighted the transition toward 800V architectures, where power could move through stages such as 800V-to-48V and 48V-to-12V. This creates more conversion points and expands opportunities for TXN’s analog, embedded-control and signal-chain products.
Analog Devices is challenging MCHP through a broader grid-to-chip power strategy spanning energy infrastructure, rack power and processor-level delivery. ADI said customers are using its solutions to achieve more than 98% conversion efficiency, multi-kilowatt power delivery, protection, telemetry and fault recording. Its 800V-to-intermediate conversion technologies can deliver 20 kilowatts at power densities above 2.5 kilowatts per cubic inch. In the third quarter of fiscal 2026, ADI also said data-center power revenues grew more than 100% year over year, while its Empower acquisition extends power delivery into the processor package, intensifying competition as AI infrastructure shifts toward higher-voltage, higher-density power architectures.
Shares of Microchip Technology have risen 17.2% year to date compared with the broader Zacks Computer and Technology sector’s 21.7% growth.
MCHP Stock’s Price Performance
Image Source: Zacks Investment Research
MCHP stock is trading at a discount, with forward 12-month price/earnings of 18.49X compared with the broader sector’s 21.16X. Microchip Technology has a Value Score of D.
MCHP’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MCHP’s earnings is currently pegged at 92 cents per share, unchanged over the past 30 days, suggesting 162.86% growth.
Microchip Technology Incorporated Price and Consensus
View the Zacks #1 Rank List
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MCHP Expands 48V Power Portfolio: Can It Outpace TXN & ADI?
Key Takeaways
Microchip Technology (MCHP - Free Report) is strengthening its position in power management as demand for efficient power delivery and monitoring rises across Artificial Intelligence (AI) data centers, automotive, industrial and communications applications. The company’s analog portfolio spans power management, high-voltage products, thermal management, MOSFETs, gate drivers and mixed-signal solutions. This broad portfolio supports MCHP’s Total System Solution strategy across microcontrollers, microprocessors, analog, FPGA, memory and connectivity products, while helping it compete with Texas Instruments (TXN - Free Report) and Analog Devices (ADI - Free Report) in power management applications. MCHP also identifies AI/ML, data centers, edge computing, networking and connectivity as key growth areas.
Building on this foundation, Microchip Technology introduced the PAC1761 and PAC1861 families of 65V energy-aware digital power monitors for 48V architectures. The devices measure voltage, current, power and accumulated energy while offering transient protection, helping improve power efficiency, system reliability and energy visibility. The launch broadens MCHP’s exposure to applications such as AI servers, networking equipment, automotive systems and industrial infrastructure. The company already targets power supplies, smart meters and energy monitoring, storage and server systems, and scale-up and scale-across AI infrastructure.
The expansion is particularly relevant to MCHP’s growing data-center business. Data centers represented 17.1% of first-quarter fiscal 2027 revenues, while data-center sales surged 97.8% year over year. Management said its data-center exposure spans power-management analog products, mixed-signal products, microcontrollers, security products, FPGAs, timing, memory, PCIe switches and storage controllers. MCHP revenues from catalog products sold into data centers are expected to increase from about $288 million in calendar 2025 to roughly $500 million in 2026. Including the Data Center Solutions business, MCHP expects total data-center revenues of about $1 billion in 2026, up roughly 69% year over year.
Management expects design wins across power management, mixed-signal, storage, security and connectivity products to support further data-center growth in 2027 and beyond. MCHP’s catalog products are often designed into systems through power-supply manufacturers, module makers and card suppliers, giving the company indirect exposure to hyperscaler infrastructure deployments.
MCHP Faces Tough Competition
Texas Instruments is intensifying competition with MCHP through its broad Analog and Embedded Processing portfolios. TXN highlighted that data-center revenues doubled year over year in the second quarter of 2026. Management also highlighted the transition toward 800V architectures, where power could move through stages such as 800V-to-48V and 48V-to-12V. This creates more conversion points and expands opportunities for TXN’s analog, embedded-control and signal-chain products.
Analog Devices is challenging MCHP through a broader grid-to-chip power strategy spanning energy infrastructure, rack power and processor-level delivery. ADI said customers are using its solutions to achieve more than 98% conversion efficiency, multi-kilowatt power delivery, protection, telemetry and fault recording. Its 800V-to-intermediate conversion technologies can deliver 20 kilowatts at power densities above 2.5 kilowatts per cubic inch. In the third quarter of fiscal 2026, ADI also said data-center power revenues grew more than 100% year over year, while its Empower acquisition extends power delivery into the processor package, intensifying competition as AI infrastructure shifts toward higher-voltage, higher-density power architectures.
MCHP’s Share Price Performance, Valuation & Estimates
Shares of Microchip Technology have risen 17.2% year to date compared with the broader Zacks Computer and Technology sector’s 21.7% growth.
MCHP Stock’s Price Performance
Image Source: Zacks Investment Research
MCHP stock is trading at a discount, with forward 12-month price/earnings of 18.49X compared with the broader sector’s 21.16X. Microchip Technology has a Value Score of D.
MCHP’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MCHP’s earnings is currently pegged at 92 cents per share, unchanged over the past 30 days, suggesting 162.86% growth.
Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote
Microchip Technology currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.