5 Must-Buy Semiconductor Stocks to Invest In Now

2. Microchip Technology Incorporated (NASDAQ:MCHP)

Number of Hedge Fund Holders: 61

Microchip Technology Incorporated (NASDAQ:MCHP) is one of the top must-buy semiconductor stocks to invest in now. UBS lifted the price target on Microchip Technology Incorporated (NASDAQ:MCHP) to $130 from $115 on May 8, reiterating a Buy rating on the shares. Microchip Technology Incorporated (NASDAQ:MCHP) also received a rating update from Raymond James the same day. The firm raised the price target on the stock to $125 from $90 while maintaining a Strong Buy rating on the shares.

The firm told investors in a research note that the quarter showed continued recovery, with inventory reductions across internal channels, distributors, and customers, along with declining underutilization charges and extending lead times that point towards improving demand consistent with broader analog industry trends. It further stated that although operating expenses are anticipated to increase as incentives normalize, gross margin expansion is expected to more than offset this, which would support EPS growth.

In a separate development, Barclays lifted the price target on Microchip Technology Incorporated (NASDAQ:MCHP) to $105 from $80 on May 11, keeping an Equal Weight rating on the shares.

Microchip Technology Incorporated (NASDAQ:MCHP) provides semiconductor products. The company’s operations are divided into the Semiconductor Products and Technology Licensing segments.

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