5 Semiconductor Stocks with Highest Upside Potential Right Now

4. Microchip Technology Incorporated (NASDAQ:MCHP)

Number of Hedge Fund Holders: 61

Upside Potential: 45.4%

Microchip Technology Incorporated (NASDAQ:MCHP) is one of the best semiconductor stocks with the highest upside potential right now. On May 11, Barclays lifted the price target on Microchip Technology Incorporated (NASDAQ:MCHP) to $105 from $80, keeping an Equal Weight rating on the shares. Microchip Technology Incorporated (NASDAQ:MCHP) also received a rating update from Raymond James on May 8, lifting 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.

Raymond James also believes that Microchip Technology Incorporated’s (NASDAQ:MCHP) differentiated exposure to datacenter and aerospace/defense end markets further bolsters its positioning for a stronger cyclical recovery with improving visibility into margin and earnings expansion over the coming quarters.

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