12 Best S&P 500 Stocks to Invest in According to Analysts

4. Microchip Technology Incorporated (NASDAQ:MCHP)

Average Share Price Upside Potential as of January 31: 57.51%

Market Cap: $29.16 billion

Microchip Technology Incorporated (NASDAQ:MCHP) is an American semiconductor company that provides smart, connected, and secure embedded control and processing solutions, serving around 123,000 customers across various industries.

On January 27, the company unveiled its second generation Low-Noise Chip-Scale Atomic Clock (LN-CSAC), model SA65-LN. The new design offers atomic clock stability, low phase noise, and can operate in a wider temperature range. The device has specifically been developed for use in aerospace and defense applications, such as IED jamming systems, unmanned vehicles, mobile radars, dismounted radios, and autonomous sensor networks.

Microchip Technology Incorporated (NASDAQ:MCHP) is also investing in strategic innovative technologies, which is positioning the company to drive long-term value creation. Its new dsPIC33A DSC core, introduced in July 2024, is driving innovation in various critical sectors, including industrial automation, where it is enabling more energy-efficient and precise motor control for smart factories and renewable energy systems. It is also powering advanced grid inverters, solar installations, and power supplies for GPU and CPU-based data centers.

Microchip Technology Incorporated (NASDAQ:MCHP) has also made notable strategic acquisitions lately, which have boosted investor confidence. On April 11 last year, it completed the acquisition of VSI Co. Ltd., a Korea-based industry pioneer in Advanced Driver-Assistance Systems (ADAS) and digital cockpit connectivity. Later in the month, it acquired Neuronix AI Labs to enhance its capabilities for AI-enabled, power-efficient solutions deployed on field programmable gate arrays.

On November 5, Microchip Technology Incorporated (NASDAQ:MCHP) declared financial results for Q2 FY25. It reported net sales of $1.164 billion, which were down 6.2% sequentially. Non-GAAP net income for the quarter stood at $250.2 million, translating into an EPS of $0.46, surpassing the guidance by three cents.

MCHP is one of the best large-cap stocks to invest in according to analysts, with a consensus Buy rating and an average share price upside potential of 57.51%.