Microchip Technology Incorporated (NASDAQ:MCHP) is included among the 10 Most Volatile Stocks to Buy in S&P 500.
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Microchip Technology Incorporated (NASDAQ:MCHP) is a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions that also offers outstanding technical support.
Microchip Technology Incorporated (NASDAQ:MCHP) was in the spotlight on June 1 when the company announced that it expects its Data Center Solutions Business unit revenue to grow by about 65% YoY to around $500 million in calendar year 2026. The business unit generated $302.7 million in revenue in calendar year 2025, and already delivered a growth of 62.9% in the March 2026 quarter.
Microchip revealed that its data center and compute end market, which also includes power management, catalog MCUs, analog, and security products, represented about 18% of the company’s total revenue.
Morgan Stanley analyst Joseph Moore highlighted Microchip’s data center announcement with the following comments:
“The stock is up ~10% after hours at the time of writing, which we find surprising as the data center numbers are basically in-line with prior commentary; perhaps most of the strength is being driven by the pricing component of the announcement, as MCHP was one of the only analog companies to state clearly on their most recent earnings call in May that it was not raising prices at that time. While we view the PR as positive overall, the share price reaction seems exaggerated – the after hours move implies a low-30s NTM P/E multiple, which is a meaningful premium to MCHP’s historical average. The [data center] disclosure is helpful, though it comes with some definitional nuance, as it includes both AI and enterprise DC, while other companies define the category differently. For example, Infineon and ON speak more directly to “AI Data Center,” while TXN and MCHP include broader enterprise DC exposure, so group comparisons are useful but not all like-for-like.”
The analyst firm maintains an ‘Equal Weight’ rating and a price target of $94 on Microchip Technology Incorporated (NASDAQ:MCHP).
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