Jim Cramer on Microchip Technology Incorporated: “I Think It’s Terrific”

Microchip Technology Incorporated (NASDAQ:MCHP) was one of the stocks on Jim Cramer’s radar as he cautioned that SpaceX could blow past its opening price. A caller mentioned that they bought “half a position” in the stock, and asked whether they should add more. Cramer replied:

It’s good. That’s industrial internet. I think it’s terrific. I think you should buy the other half, frankly. I think it’s a good one.

Microchip Technology Incorporated (NASDAQ:MCHP) produces secure embedded control solutions, including microcontrollers, microprocessors, analog components, and memory hardware. In addition, it licenses its proprietary flash memory technologies and provides contract manufacturing, wafer foundry, and engineering services. Madison Investments stated the following regarding Microchip Technology Incorporated (NASDAQ:MCHP) in its fourth quarter 2025 investor letter:

We sold two holdings, Trex and Microchip Technology Incorporated (NASDAQ:MCHP). Microchip Technology is one of the leading analog and microcontroller companies, benefiting from long product lifecycles and diverse end markets. Microchip struggled with supply chain challenges over the past 24 months as lengthening production lead times led to customer over-ordering. The company’s founder, Steve Sanghi returned to the CEO role this past summer and has been successful in reducing excess inventory and positioning the company for a recovery in market share. We are encouraged by Steve’s action plans, but as the stock’s valuation has recovered, we elected to sell our small stake.

While we acknowledge the risk and potential of MCHP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MCHP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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