Piper Sandler Raises Microchip (MCHP) Target to $85, Calls It Top Mid-Cap Pick

Microchip Technology Incorporated (NASDAQ:MCHP) is one of the AI Stocks Making Waves on Wall Street. On January 15, Piper Sandler analyst Harsh Kumar raised the price target on the stock to $85.00 (from $80.00) while maintaining an Overweight rating. The analyst sees upside for Microchip, driven by multiple growth levers, and identifies it as its "top mid-cap pick."

Kumar believes calendar 2026 is shaping up to be very positive for MHCP, particularly with the company witnessing strengthening order momentum over the past two months.

This recovery appears to be broad-based but primarily driven by the industrial sector, with automotive now stabilizing as well. The firm noted that it has heard of similar constructive commentary from other companies as well, particularly ON and ADI.

It also highlighted potential revenue catalysts, particularly the expectation that Microchip will benefit from new AI data center parts and components. This could begin in the September 2026 quarter, which may lead to "oversized revenue growth relative to the industry."

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions. It delivers solutions across the industrial, automotive, consumer, aerospace and defense, communications and computing markets.

While we acknowledge the potential of 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.

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