13 Most Promising AI Stocks to Buy Now

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9. Microchip Technology Incorporated (NASDAQ:MCHP)

Number of Hedge Fund Holders: 56

Microchip Technology Incorporated (NASDAQ:MCHP) is one of the Most Promising AI Stocks to Buy Now. Goldman Sachs began coverage on the company’s stock with a “Buy” rating and a price objective of $88.00.  The firm sees Microchip Technology Incorporated (NASDAQ:MCHP) as a leading global supplier of microcontrollers and analog products throughout diverse markets. This places the company for growth as the sector sees recovery. As per the firm, the microcontroller market remains in the early stages of a recovery. It is presently shipping at levels that are well below end demand, which creates growth potential that can surpass Wall Street estimates.

The strong growth of AI has been transforming data centers, which creates an unprecedented demand for high-performance, secure, reliable, and innovative solutions. Microchip Technology Incorporated (NASDAQ:MCHP) remains focused on addressing such evolving market needs through developing advanced technologies for data center connectivity, storage, and data retrieval. From accelerating high-speed connectivity as well as storage rates to optimizing power and management systems, Microchip Technology Incorporated (NASDAQ:MCHP) believes that its innovations support next-generation AI workloads and provide scalability for customers.

ClearBridge Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Also within the IT sector, we added Microchip Technology Incorporated (NASDAQ:MCHP), which supplies analog and mixed-signal microprocessors for use in the automotive, industrial, computing and other industries. We took advantage of recent weakness in the stock to add to the position. We believe that the return of the company’s prior CEO and efforts to rebuild relationships with customers has resulted in Microchip recovering market share to prior levels, and that it represents an attractive cyclical improvement story with asset optimization improvements and good business visibility.”

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