Q2 Rundown: Microchip Technology (NASDAQ:MCHP) Vs Other Analog Semiconductors Stocks

September 30, 2025 at 23:38 PM EDT

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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Microchip Technology (NASDAQ: MCHP) and the best and worst performers in the analog semiconductors industry.

Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years.

The 15 analog semiconductors stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Microchip Technology (NASDAQ: MCHP)

Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.

Microchip Technology reported revenues of $1.08 billion, down 13.4% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a very strong quarter for the company with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.

Steve Sanghi, Microchip’s CEO and President commented that "Fiscal 2026 is off to a strong start as revenue grew 10.8% sequentially to approximately $1.0755 billion, well ahead of our revised guidance. As we execute our strategic imperatives under our nine-point recovery plan, we are seeing improvements across key financial metrics and emerging from the prolonged industry downturn with enhanced operational capabilities and a strengthened financial position. The momentum from the March quarter has accelerated into fiscal 2026, validating our strategic plan and positioning us well to capitalize on the recovery."

Unsurprisingly, the stock is down 2.6% since reporting and currently trades at $64.55.

Is now the time to buy Microchip Technology? Access our full analysis of the earnings results here, it’s free.

Best Q2: Impinj (NASDAQ: PI)

Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ: PI) is a maker of radio-frequency identification (RFID) hardware and software.

Impinj reported revenues of $97.89 million, down 4.5% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 50.5% since reporting. It currently trades at $184.36.

Is now the time to buy Impinj? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Himax (NASDAQ: HIMX)

Taiwan-based Himax Technologies (NASDAQ: HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.

Himax reported revenues of $214.8 million, down 10.4% year on year, exceeding analysts’ expectations by 1.3%. Still, it was a softer quarter as it posted EPS in line with analysts’ estimates and an increase in its inventory levels.

Interestingly, the stock is up 2.1% since the results and currently trades at $8.82.

Read our full analysis of Himax’s results here.

Magnachip (NYSE: MX)

With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE: MX) is a provider of analog and mixed-signal semiconductors.

Magnachip reported revenues of $47.62 million, up 2.6% year on year. This number surpassed analysts’ expectations by 0.9%. Aside from that, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but an increase in its inventory levels.

The stock is down 24.2% since reporting and currently trades at $3.13.

Read our full, actionable report on Magnachip here, it’s free.

onsemi (NASDAQ: ON)

Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.

onsemi reported revenues of $1.47 billion, down 15.4% year on year. This result beat analysts’ expectations by 1.2%. Aside from that, it was a slower quarter as it produced an increase in its inventory levels and EPS in line with analysts’ estimates.

onsemi had the slowest revenue growth among its peers. The stock is down 13.6% since reporting and currently trades at $49.10.

Read our full, actionable report on onsemi here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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