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Microchip (MCHP) Target Up as Mizuho Turns Selective on Chips

Microchip Technology Incorporated (NASDAQ:MCHP) is included among the 13 Top Tech Stocks Paying Consistent Dividends.

Image by Alexsander-777 from Pixabay

On December 16, Mizuho analyst Vijay Rakesh raised his price target on Microchip Technology Incorporated (NASDAQ:MCHP) to $80 from $75 and kept an Outperform rating. The change came as the firm updated its views across semiconductors and chip equipment names heading into 2026.

Mizuho flagged pressure in the EV market. U.S. electric vehicle sales fell 20% to 50% month over month in October and November. Canceled and delayed launches expected in 2026 could add to the drag. The firm sees a mixed setup for the sector, with analog and auto suppliers facing headwinds, while industrial end markets may hold up better.

Microchip Technology Incorporated (NASDAQ:MCHP) has trailed much of the semiconductor space this year. Its chips are used widely in industrial systems, not in cutting-edge AI hardware, and that has mattered. The stock is down close to 6% over the past six months.

That tone started to shift after the company updated its outlook for the third quarter of fiscal 2026, which ends December 31. The revised forecast came in above Street expectations. Microchip Technology Incorporated (NASDAQ:MCHP) now expects both revenue and EPS to land at the high end of its prior guidance. That implies about 1% sequential growth, better than earlier guidance that pointed to a decline. Management also said the updated revenue outlook reflects roughly 12% growth from a year ago.

Microchip’s President and CEO Steve Sanghi made the following statement:

“With two months of the quarter behind us, our business is performing better than we expected at the time of our November 6, 2025 earnings conference call. Our bookings activity has remained strong through November, with backlog filling in better than expected in the current quarter and growing nicely into the March 2026 quarter.”

Microchip Technology Incorporated (NASDAQ:MCHP) supplies microcontrollers, mixed-signal and analog products, along with Flash-based IP. The company is known for pairing its hardware with strong technical support, which tends to matter in industrial applications.

While we acknowledge the potential of MCHP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MCHP and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Long Term US Stocks to Buy Now and 12 Best Dogs of the Dow to Invest in.

Disclosure: None.

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