Why Microchip Technology Incorporated (MCHP) Went Up On Wednesday?

We recently published a list of 10 Stocks Stand Strong Amid Cautious Market Environment. In this article, we are going to take a look at where Microchip Technology Incorporated (NASDAQ:MCHP) stands against stocks that stand strong amid cautious market environment.

The stock market showed resilience on Wednesday, with all major indices ending in the green territory anew, as investors weighed news of President Donald Trump’s imposition of a new round of tariffs while digesting minutes of the Federal Reserve.

The Dow Jones rose by 0.16 percent, the S&P 500 increased by 0.24 percent, while the tech-heavy Nasdaq eked out a 0.07 percent gain.

Despite the news, ten companies managed to stand out, posting modest gains during the trading session.

To come up with Wednesday’s top performers, we considered only the stocks with more than $1.9 billion in market capitalization and $5 million in daily trading volume.

Note that some stocks we have covered in-depth over the past few days have been excluded from this list.

Why Microchip Technology Incorporated (MCHP) Went Up On Wednesday?

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

Microchip Technology Incorporated (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHP) extended its winning streak for a seventh consecutive day, adding 9.9 percent on Wednesday to close at $63.59, as investor sentiment was fueled by the company’s introduction of the MPLAB AI Coding Assistant, an advanced AI-powered software development tool designed to assist software developers and embedded engineers in writing and debugging code.

According to the company, MPLAB AI Coding Assistant is a Microsoft Visual Studio Code (VS Code) extension free for use based on Continue—the market’s leading open-source AI code assistant—and comes preconfigured with MCHP’s AI chatbot for real-time support.

“The MPLAB AI Coding Assistant represents a significant leap forward in software development and will transform how engineers work with Microchip products,” said MCHP Vice President for Development Systems and Academic Programs Rodger Richey. “We are harnessing the power of AI to provide interactive, real-time support that helps developers create better software, more quickly and with less hassle.”

Overall, MCHP ranks 6th on our list of stocks that stand strong amid cautious market environment. 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 timeframe. 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 Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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