From Nasdaq: 2025-05-12 08:00:00

Microchip Technology (NASDAQ: MCHP) stock is rebounding after reaching the bottom of the cycle, with demand improving and an inflection point reached at the end of F2024. Despite a year-over-year decline in Q4, sequential growth is expected in fiscal Q1 2025, making it a buy for 2025 with high-double to low-triple-digit returns expected.

One reason Microchip Technology is a good buy is its semiconductor market position, producing various semiconductor products for industries like industrial, automotive, data center, and IoT. With domestic fabs in the U.S., the company is well-positioned for onshoring semiconductor manufacturing and growth in 2025.

Q4 results for Microchip Technology were better than expected, with revenue down 27% year-over-year but showing signs of a rebound. Positive cash flow allows for debt reduction, inventory reduction, and returning capital to shareholders. The company’s fortress balance sheet and high dividend yield make it an attractive investment.

Microchip Technology’s balance sheet is strong, with debt reduction and equity gains expected in 2025. The company’s high dividend yield and commitment to sustaining it reinforce its appeal as a reliable income stock during its rebound. Analysts’ sentiment for MCHP stock has bottomed, with significant price target increases forecasting a 35% upside and potential for triple-digit growth to retest highs near $100.



Read more at Nasdaq:: 5 Reasons the Rebound in Microchip Technology Stock Is Real