Microchip's NASA spaceflight computer passes radiation tests as insiders sell $71 million, buying none
Radiation milestones on a NASA-contracted spaceflight computer and the quiet purchase of radiation-hardened chipmaker VORAGO hand Microchip a second growth story. The stock's 115.6x trailing multiple already believes it; the November 5 earnings report is the first audit.
Vincent Jiang · 2 min read
A NASA computer passes its radiation exam
On October 27, 2026 Microchip−4.84% — Microchip, down 4.84 percent today reported the first radiation results for PIC64-HPSC, the 64-bit multicore RISC-V spaceflight computer that NASA and the Jet Propulsion Laboratory awarded it in 2022 1. The hardened variant, PIC64-HPSC1000-RH, absorbed a total ionizing dose of 200 krad(Si) and latch-up strikes to 78.2 MeV·cm²/mg with no uncorrected errors and no external resets in testing to date, and Early Access customers are already evaluating working silicon 1. Microchip points to NASA's FY26 Civil Space Shortfall Prioritization, which ranks advanced onboard computing third among civil space technology gaps 1.
October bought a whole space line
The milestone capped a month of assembly. On October 9 Microchip said it had acquired VORAGO Technologies, an Austin, Texas firm founded in 2004 that builds radiation-hardened microcontrollers rated for heat to 200°C; the price was not disclosed and Microchip called the deal immaterial to consolidated results 2.
VORAGO's patented HARDSIL process raises the radiation tolerance of existing chip designs without a full redesign, a shortcut for satellite integrators on tight schedules 25. On October 22 came the LX-820, a radiation-tolerant quartz oscillator for low Earth orbit, tested to 50 krad total ionizing dose and shipping in production quantities 34.
The multiple is the complication
Five quarters of recovery, still a third below the 2023 peak
Data
| Net revenue | |
|---|---|
| Q3 '23 | $2.25B |
| Q4 '23 | $1.77B |
| Q1 '24 | $1.33B |
| Q2 '24 | $1.24B |
| Q3 '24 | $1.16B |
| Q4 '24 | $1.03B |
| Q1 '25 | $0.97B |
| Q2 '25 | $1.08B |
| Q3 '25 | $1.14B |
| Q4 '25 | $1.19B |
| Q1 '26 | $1.31B |
| Q2 '26 | $1.49B |
The core business is recovering, not recovered. Revenue has risen five straight quarters off a $0.971 billion trough to $1.485 billion in the June quarter, up 38% year over year 67, yet it sits about a third below the September 2023 peak 7. The stock closed October 30 at $77.34 after a 4.7% drop, at 115.6 times trailing earnings against a five-year median of 27.2, with insiders selling $71.1 million of stock over 12 months and buying none 8.
Margins are climbing but operating margin is still 17 points below the 2023 peak
- Gross margin
- Operating margin
- Net margin
Data
| Gross margin | Operating margin | Net margin | |
|---|---|---|---|
| Q3 '23 | 67.8% | 39.3% | 29.6% |
| Q4 '23 | 63.4% | 30% | 23.7% |
| Q1 '24 | 59.6% | 19.1% | 11.7% |
| Q2 '24 | 59.4% | 17.7% | 10.4% |
| Q3 '24 | 57.4% | 12.6% | 6.7% |
| Q4 '24 | 54.7% | 3% | -5.2% |
| Q1 '25 | 51.6% | -10.3% | -15.9% |
| Q2 '25 | 53.6% | 3% | -1.7% |
| Q3 '25 | 55.9% | 7.8% | 3.7% |
| Q4 '25 | 59.6% | 12.8% | 5.3% |
| Q1 '26 | 61% | 16.6% | 11% |
| Q2 '26 | 63.2% | 22.7% | 15.5% |
November 5 prices the story
The bull case holds a Moderate Buy consensus and a $97.71 average price target 6. But no space product carries a disclosed revenue figure and VORAGO is explicitly immaterial, so Thursday's report measures the old cycle, not the new one.
Consensus wants $0.936 of EPS on $1.61 billion of revenue for the September quarter, inside company guidance of $0.910–$0.950 6. The chip is rated to survive 200 krad of radiation; the shareholder is being asked to absorb 115 times trailing earnings 6. The tell on the 5pm ET call is whether any space line gets a number attached 6.
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