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Arm Holdings vs Microchip Technology: Which Stock Looks Stronger in 2026?

The structural profiles are close, with Arm carrying a narrow edge on profitability. Microchip Technology still has the edge on growth, which keeps the comparison from looking entirely one-sided. The market setup is broadly comparable for both — no clear directional signal from price behavior. The market is not adding a decisive signal either way — the structural read carries the weight.

The comparison is based on similar long-term financial trajectories, not sector labels. Both peer scores are relative to the Nasdaq 100 universe, making them directly comparable.

Updated 2026-05-17

The lead runs through profitability, while growth still acts as a real counterweight on the other side.

INDUSTRY COMPARISON

Both operate in: Semiconductors

This comparison is based on industry proximity, not on functional trajectory similarity. ARM and MCHP share the same industry classification.

For a similarity-based comparison, see how Arm and Microchip Technology each position within their functional peer groups in AssetNext.

Peer-Relative Score
ARM
Arm Holdings plc
40
Peer-Score
Signal qualityHigh
Peer basis: Nasdaq 100
vs
MCHP
Microchip Technology Incorporated
35
Peer-Score
Signal qualitylow
Peer basis: Nasdaq 100

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

The clearest separation appears in profitability.

Dimension spread: ARM vs MCHP Profitability 70 25 Stability 41 41 Valuation 10 11 Growth 41 81 ARM MCHP
Gap Ranking
#1 Profitability +45
#2 Growth +40
#3 Valuation +1
#4 Stability
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for ARM and MCHP Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer ARMMCHP Relative valuation Structural strength

The setup remains mixed because the stronger profile and the more supportive price setup do not sit on the same side.

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Relative Position vs Comparable Companies
Profitability
Arm Holdings plc ranks near the top of the group on profitability; Microchip Technology Incorporated sits in the weaker half.
Growth
On growth, the same pattern holds: both are strong, but Microchip Technology Incorporated still leads clearly.
Profitability — Dominant Gap
ARM
70
MCHP
25
Gap+45in favour of ARM

The profitability lead is mainly driven by a 12.5-point operating margin advantage.

What keeps the gap from being one-sided

Growth still tilts materially toward Microchip Technology Incorporated, which stops the result from looking dominant across the whole profile.

What this means for the comparison

The page question resolves through profitability, but growth and current pricing still keep the broader comparison from reading as fully aligned.

Explore full peer positioning in AssetNext

Break down the ARM vs MCHP comparison across all dimensions with the full interactive tool.

Explore full breakdown →
Other comparisons with conflicting dimension signals

Explore how ARM and MCHP each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.