Alchip TechnologiesLUX:ALCHA 98 Operating Margin % is 29.26% as of Dec. 2025, which is 120% above its 10-year median of 13.33. GuruFocus rates LUX:ALCHA with a GF Score™ of 98/100 and a GF Value™ of $93.12. The stock has 2 warning signs investors should review. Among 1,021 Semiconductors companies, Alchip Technologies ranks better than 77.47% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Alchip Technologies Operating Margin % Related Terms
Alchip Technologies Operating Margin % Historical Data
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The historical data trend for Alchip Technologies's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LUX:ALCHA vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Alchip Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alchip Technologies Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Alchip Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Alchip Technologies's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Alchip Technologies's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alchip Technologies (LUX:ALCHA) has a Operating Margin % of 29.26% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Alchip Technologies and its competitors. This is 120% above median its historical median of 13.33. According to the industry distribution chart, Alchip Technologies ranks #230 out of 1021 companies in the Semiconductors industry, placing it in the top 22.5%.
Is Alchip Technologies' Operating Margin % too high?
Alchip Technologies' current Operating Margin % of 29.26% is 120% above median its 10-year median of 13.33. The Semiconductors industry median Operating Margin % is 5.24. Alchip Technologies' value of 29.26% is 458.4% above this industry median. Based on the distribution chart, Alchip Technologies ranks #230 out of 1021 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Alchip Technologies has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.
How does Alchip Technologies' Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Alchip Technologies ranks #230 out of 1021 companies for Operating Margin %. This places Alchip Technologies in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.24. Alchip Technologies' value of 29.26% is 458.4% above this benchmark. While the company's 10-year median is 13.33 vs. the industry median of 5.24, Alchip Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.24, based on 1,021 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alchip Technologies's current Operating Margin % of 29.26% is 458.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Alchip Technologies and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alchip Technologies's current Operating Margin % is 29.26%, which is 120% above median its own 10-year median of 13.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alchip Technologies stock overvalued right now?
Alchip Technologies (LUX:ALCHA) has a current Operating Margin % of 29.26%. The stock's GF Value™ is $93.12, compared to a current price of $88.00 — trading 5.5% below its estimated fair value. The current Operating Margin % is 29.26%, which is 120% above median its 10-year median of 13.33 and 458.4% above the Semiconductors industry median of 5.24. Alchip Technologies' overall GF Score™ is 98/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Alchip Technologies (LUX:ALCHA), the current Operating Margin % is 29.26% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alchip Technologies (LUX:ALCHA) Overvalued in 2026?
Based on GuruFocus' analysis, Alchip Technologies stock appears to be undervalued.
The current stock price of $88.00 is trading 5.5% below its estimated GF Value™ of $93.12.
Key valuation signals for LUX:ALCHA:
Operating Margin %: 29.26% (120% above median its 10-year median of 13.33)
GF Value™: $93.12 vs. price of $88.00 (5.5% below fair value)
Industry Position: 458.4% above the Semiconductors median (#230 of 1021)
No single metric tells the full story. See the LUX:ALCHA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alchip Technologies Ltd is engaged in the research and development, design, and manufacture of fabless application-specific integrated circuits (ASIC) and system on a chip (SoC) and the rendering of related services. Its geographical segments are China, Japan, the United States, Europe, Taiwan, and Others, of which majority of its revenue comes from the United States.
98GF Score
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