We recently compiled a list of the Top 8 Must-See AI News Updates Investors Should Not Miss. In this article, we are going to take a look at where Microchip Technology Incorporated (NASDAQ:MCHP) stands against the other AI stocks.
On 17th February, xAI launched its updated Grok 3 AI model as part of efforts to stay at par with the evolving reasoning and search capabilities showcased by global competitor models. During an event live-streamed on X, xAI leaders claimed that the latest version of Grok 3 is better than Gemini, GPT-4o, Claude 3.5, and DeepSeek’s V3 models in terms of math, science, and coding benchmarks.
xAI also highlighted the tool’s latest features, which include advanced web searching with “deep search,” coding abilities for online games, and a “big brain” mode for complex problems. The xAI announcement comes as the global AI race heats up amid China’s advancements in this space.
While the cost-effective DeepSeek AI and the Qwen 2.5 models triggered a $1.3 trillion market rally in China, the mainland could witness further economic boost after recently announcing breakthroughs in quantum computing, focusing on quantum communications. However, analysts warn of data-driven surveillance and global data-centric authoritarianism in tandem with quantum advances.
“First, quantum computing is expected to eventually enable any state or non-state actor that possesses this technology to circumvent encryption that protects communications,” the analysts state. “Second, if the quantum communications providers who are first-movers in this space adopt cryptography standards and equipment that include backdoors for official government use, information conveyed over quantum networks will be vulnerable to state surveillance — potentially either by the governments that import these technologies, or by the home countries of companies that provide quantum services.”
We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A semiconductor wafer at various stages of fabrication, showing the company’s range of expertise.
Microchip Technology Incorporated (NASDAQ:MCHP)
Number of Hedge Fund Holders: 37
Microchip Technology Incorporated (NASDAQ:MCHP) supplies smart, easy-to-use, and secure embedded control and processing solutions, enabling clients in the automotive, industrial, aerospace, computing, and communications sectors to develop optimal designs while lowering risk, overheads, and time to market.
On February 19th, Microchip Technology Incorporated (NASDAQ:MCHP) announced the launch of the MPLAB AI Coding Assistant, based on open-source AI code assistant Continue, to help software developers and embedded engineers write and debug code. The tool is a Microsoft Visual Studio Code extension, which comes preconfigured with Microchip’s AI chatbot for real-time support. It offers a unique sidebar chat feature for code evaluation and iteration. The feature-rich tool also comes with advanced autocomplete for simpler coding, an edit option, error detection, and seamless access to documentation on Microchip’s microcontrollers and processors.
“The MPLAB® AI Coding Assistant represents a significant leap forward in software development and will transform how engineers work with Microchip products. We’re harnessing the power of AI to provide interactive, real-time support that helps developers create better software, more quickly and with less hassle.”
-said Rodger Richey, VP of development systems and academic programs at Microchip Technology Inc.
Overall MCHP ranks 4th on our list of the AI stocks investors should not miss. 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. 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 the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
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