Microchip Technology Incorporated (MCHP) Benefited from the Improved Semiconductor Cycle

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) returned 5.2% compared to the 8.5% increase for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Madison Mid Cap Fund highlighted stocks such as Microchip Technology Incorporated (NASDAQ:MCHP). Microchip Technology Incorporated (NASDAQ:MCHP) manufactures and distributes smart, connected, and secure embedded control solutions. The one-month return of Microchip Technology Incorporated (NASDAQ:MCHP) was -4.96%, and its shares lost 15.46% of their value over the last 52 weeks. On September 19, 2025, Microchip Technology Incorporated (NASDAQ:MCHP) stock closed at $65.15 per share, with a market capitalization of $35.16 billion.

Madison Mid Cap Fund stated the following regarding Microchip Technology Incorporated (NASDAQ:MCHP) in its second quarter 2025 investor letter:

"The top five contributors for the quarter were Amphenol, Microchip Technology Incorporated (NASDAQ:MCHP), Arista Networks, MKS, and Liberty Formula One. Microchip and MKS both benefited from improved sentiment regarding the semiconductor cycle. Microchip’s CEO boldly predicted that the business has bottomed for this cycle, while MKS’s quarterly report showed signs of end markets picking up."

Microchip Technology Incorporated (NASDAQ:MCHP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 54 hedge fund portfolios held Microchip Technology Incorporated (NASDAQ:MCHP) at the end of the second quarter, down from 56 in the previous quarter.  While we acknowledge the potential of Microchip Technology Incorporated (NASDAQ:MCHP) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Microchip Technology Incorporated (NASDAQ:MCHP) and shared a list of stocks that will benefit from AI. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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