New York, January 28, 2026, 15:30 EST — Regular session
- Microchip Technology shares rose about 8% in afternoon trading after a Bank of America upgrade
- The move came amid a broader lift in chip stocks tied to AI data-center demand
- Traders now look to Microchip’s Feb. 5 results for signs the industrial recovery is sticking
Microchip Technology Inc shares jumped on Wednesday, extending a run in chip stocks as investors chased signs the battered analog market may be turning. The stock was up about 7.6% at $80.87 by 3:15 p.m. EST.
Bank of America upgraded Microchip to “buy” from “neutral” and lifted its price target to $95 from $78, pointing to better recovery momentum and visibility. The brokerage also raised its 2026 and 2027 earnings estimates for Microchip and flagged the company’s heavy industrial exposure as a lever if factory demand improves. Microchip is expected to report its next quarterly results on Feb. 5. 1
The call landed in a tape already leaning toward semis. Chipmakers rallied on optimism that AI data-center spending is spreading beyond Nvidia’s flagship processors, helping lift the Philadelphia Semiconductor index, while Texas Instruments climbed after an upbeat outlook. “Conditions are improving and … they are expanding their growth plans,” said Louise Dudley, a global equities portfolio manager at Federated Hermes. 2
In a separate note carried by TheFly, BofA analyst Vivek Arya said less-crowded analog names “can reenergize” as industrial inventories replenish and demand builds in data-center power and connectivity. He added Microchip trades at a premium multiple, but sees room for earnings upgrades given the firm’s view of 2027 sales still below the company’s prior peak. 3
Microchip has also been out with fresh product news. On Tuesday it said it expanded its maXTouch M1 touchscreen controller lineup for a wider range of automotive display sizes, including large free-form screens, as carmakers push more electronics into dashboards. “Automotive cockpit displays are rapidly changing,” said Giovanni Fontana, who leads Microchip’s human machine interface division. 4
A regulatory filing earlier in the week showed CEO Steve Sanghi sold 18,509 shares on Jan. 22 at $79.1984 each, under a Rule 10b5-1 plan — a pre-set trading program used to reduce the risk of trading on inside information. 5
But the bounce leaves less room for disappointment. Investors have been quick to fade chip rallies when industrial demand fails to follow through, and Microchip’s exposure cuts both ways if orders stall or customers keep working down stockpiles.
Next up is Feb. 5, when Microchip reports results and guidance. Traders will be listening for updates on order trends, factory utilization and margins — and whether management’s tone matches the new optimism showing up in analyst notes.
