Why Microchip Technology Inc. (MCHP) Went Down On Thursday?

We recently published a list of Traders Heavily Sold Down These 10 Stocks on Thursday. In this article, we are going to take a look at where Microchip Technology Inc. (NASDAQ:MCHP) stands against other stocks that traders heavily sold down on Thursday.

The stock market wiped away earlier gains, ending Thursday’s trading in another bloodbath session, as investors sold off positions amid President Donald Trump’s announcement that he had actually raised tariffs on Chinese goods to 145 percent.

The Nasdaq was battered the most among all major indices, losing 4.31 percent. The S&P 500 followed with a 3.46-percent drop while the Dow Jones came in last, down 2.50 percent.

Meanwhile, 10 companies were heavily sold down on Thursday, recording double-digit losses as investors parked funds to minimize risks from the ongoing uncertainties. In this article, we have listed Thursday’s 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million trading volume.

A semiconductor wafer at various stages of fabrication, showing the company’s range of expertise.

Microchip Technology Inc. (NASDAQ:MCHP)

Investors resorted to profit-taking in shares of Microchip Technology on Thursday following earlier gains, pushing the company’s price down by 13.56 percent to end at $38.81 each.

Despite being headquartered in the US, shares of MCHP were sold down given its huge international trade exposure that could be largely impacted by the ongoing trade tensions globally. It does not help that China is one of the countries where MCHP has a large footprint on, having 16 sales and technical offices across the mainland and a development center in Shanghai.

According to the company, its China operations work with approximately 170 strategic channel partners and serve more than 12,000 customers.

MCHP currently employs approximately 440 employees in the mainland.

Earlier this week, an analyst warned that chipmakers’ indirect exposure to electronics and machinery would impact them more than investors realized.

Overall, MCHP ranks 5th on our list of stocks that traders heavily sold down on Thursday. While we acknowledge the potential of MCHP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MCHP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.