15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip

6. Microchip Technology Incorporated (NASDAQ:MCHP) 

Microchip Technology Incorporated is a manufacturer, developer, and seller of connected, secure, and smart embedded control solutions. The company provides general-purpose microcontrollers and specialized microcontrollers for computing, power supplies, security, and other applications. The stock is up 6.33% in the last week against the S&P 500’s 1.13% gains.

It is the company’s Q3 2025 earnings that is driving the recent rally. After a disappointing year for shareholders, there is hope that the worst is behind the firm. It reported a 41.9% YoY decline in revenues, mainly due to inventory corrections recorded across all products globally.

The upside in the stock during the last week can be explained with a positive outlook. To start with, Microchip is working on improving efficiency by reorganizing business units and carrying out capacity adjustments at its manufacturing facilities. The company has also decided to close down its Tempe Fab. The inventory, which now stands at 266 days compared to 247 days in the last quarter, is a major area of concern for Microchip. The CEO stated on the earnings call that he is working on halving the inventory days, a move that could free up $250 million cash by FY2026 end.

Microchip’s upcoming products include the 64-bit RISC-V processor with AI powers as well as advanced networking solutions for the automotive industry. The firm’s innovation in the FPGA segment is also gaining strength as it continues to serve industries like AI applications for medical imaging and space exploration.