Alchip Technologies Ltd. (3661) AI Stock Analysis

Alchip Technologies Ltd.

(TWSE:3661)

Select Model

Rating:63Neutral

Price Target:TWD 3,014.00▼(-17.42% Downside)

Action:initiatedcoverage

Date:11/09/26

Alchip scores above average on the strength of its finances: effectively debt-free, well-capitalized, and generating NT$14.5 billion of free cash flow with record profitability margins. That strength is tempered by a sharp 21% revenue decline, lower net profit and fading return on equity, which underline the cyclical, customer-concentrated nature of the ASIC business. The technical picture is the biggest drag, with the share price trading far below all key moving averages and negative MACD momentum despite oversold readings. A rich 43x P/E and slim 1.15% dividend yield leave limited valuation cushion while top-line momentum is absent.

Positive Factors

Very low leverageAlchip’s exceptionally low leverage reduces financial risk and preserves flexibility to invest through semiconductor cycles. A lightly indebted balance sheet also limits interest burdens, supports resilience if demand weakens, and gives management more capacity to fund growth or return capital.

Negative Factors

Cyclical revenue and earningsThe sharp 2025 revenue decline after strong growth in 2023–2024 shows that Alchip’s results remain exposed to semiconductor demand cycles. Uneven sales can make capacity planning, earnings forecasting, and sustained investment more difficult even when underlying margins remain healthy.

Alchip Technologies Ltd. (3661) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 326.66B
Dividend Yield: 0.89%
Average Volume (3M): 2.43M
Price to Earnings (P/E): 51.2
Beta (1Y): 1.91
Revenue Growth: 8.49%
EPS Growth: 27.68%
Country: TW
Employees: 578
Sector: General
Sector Strength: 55
Industry: Semiconductors

Alchip Technologies Ltd. Business Overview & Revenue Model

Company Description

Alchip Technologies, Limited, together with its affiliated companies, specializes in the innovation, development, and design of custom-built, fabless Application Specific Integrated Circuits (ASICs) and complete Systems on a Chip (SoCs), in addition...

Alchip Technologies Ltd. Financial Statement Overview

Summary

A pristine balance sheet anchors the profile: essentially no debt (debt-to-equity near 0.8%), equity funding about 70% of the NT$58.0 billion asset base, and equity more than tripling since 2022 (Balance Sheet 88). Cash generation rebounded sharply in 2025, with operating cash flow of NT$16.7 billion and free cash flow of NT$14.5 billion versus under NT$0.8 billion a year earlier, though the multi-year record is volatile with negative free cash flow in 2021 and 2022 (Cash Flow 80). The weakest link is the income statement (73): revenue fell roughly 21% to NT$30.9 billion and net income slipped about 13% to NT$5.6 billion, even as gross margin expanded to 26.4% and net margin hit a multi-year high of 18.1%. Return on equity has eased to 13.7% from 18.5% in 2023, highlighting the customer-concentrated, project-lumpy nature of the custom-silicon model.

Income Statement

73Positive

Balance Sheet

88Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.12B	30.93B	51.97B	30.48B	13.73B	10.43B
Gross Profit	8.60B	8.15B	10.20B	6.79B	4.43B	3.56B
EBITDA	7.60B	8.08B	10.49B	6.24B	4.44B	3.44B
Net Income	5.88B	5.60B	6.45B	3.33B	1.83B	1.49B
Balance Sheet
Total Assets	89.63B	58.04B	50.31B	32.46B	19.74B	13.26B
Cash, Cash Equivalents and Short-Term Investments	53.09B	38.88B	29.43B	14.14B	6.81B	8.30B
Total Debt	289.79M	325.24M	207.33M	226.32M	121.60M	86.25M
Total Liabilities	29.29B	17.21B	10.83B	14.42B	6.74B	2.91B
Stockholders Equity	60.33B	40.81B	39.46B	18.01B	12.99B	10.35B
Cash Flow
Free Cash Flow	-1.07B	14.45B	744.83M	6.05B	-1.61B	-1.36B
Operating Cash Flow	690.48M	16.74B	3.36B	9.31B	-245.84M	345.39M
Investing Cash Flow	-10.75B	-7.30B	-676.46M	-5.12B	1.48B	-5.71B
Financing Cash Flow	15.73B	-2.65B	12.86B	1.28B	-765.73M	4.77B

Alchip Technologies Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3661 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5269	81Outperform	TWD 83.43B	12.10	―	3.80%	5.30%	51.53%
TW:3529	76Outperform	TWD 161.96B	72.84	―	0.91%	16.73%	27.60%
TW:6531	75Outperform	TWD 118.72B	37.19	―	0.95%	91.95%	230.68%
TW:3034	68Neutral	TWD 292.00B	14.61	―	4.78%	2.41%	13.76%
TW:6526	63Neutral	TWD 114.91B	38.14	―	1.86%	9.57%	7.98%
TW:3661	63Neutral	TWD 293.99B	51.20	―	0.89%	8.49%	27.68%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:3661 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3661	Alchip Technologies Ltd.	3650.00	152.34	4.36%
TW:3034	Novatek Microelectronics Corp.	481.00	105.63	28.14%
TW:3529	eMemory Technology, Inc.	2265.00	277.93	13.99%
TW:5269	Asmedia Technology Inc.	1195.00	-79.41	-6.23%
TW:6526	Airoha Technology Corp.	726.00	269.66	59.09%
TW:6531	AP Memory Technology Corp.	733.00	329.27	81.56%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Alchip Technologies Ltd. AI Stock Analysis