We put together a list of the 12 Best S&P 500 Stocks to Invest in According to Analysts and we’re going to see how Microchip Technology Incorporated (NASDAQ:MCHP) compares with other stocks in that list.
The stock market has had quite an impressive run lately. In 2023, it rose by 24.2%, and then in 2024, it gained another 23.31%. That adds up to a two-year rise of over 53%. This is the best performance we’ve seen since the late 1990s.
The market enjoyed a boost from a strong economy, falling interest rates, and easing inflation. As we look ahead to 2025, analysts are optimistic about continued growth, especially with potential changes in government policy.
On January 23, the market climbed 0.5%, breaking past previous highs. This rise followed news that inflation is slowing down more than experts expected. So far this year, the index has gained 4%.
Investors are feeling positive, especially after President Trump expressed his goals to lower oil prices and reduce interest rates further. His gentler approach on tariffs has also helped. Analyst Larry Tentarelli comments on this sentiment:
“Market reactions can be unpredictable, but so far, it’s responding well to Trump’s policies. We’ll see if that continues.”
January has been a good month for corporate earnings too. Data shows profits for S&P 500 companies could grow by over 12% in the fourth quarter compared to last year’s figures. If true, this would be the best quarterly growth since 2021.
While things look good, some analysts warn that the rally might be overstretched and a correction could be on the horizon. Issues like trade wars, ongoing global conflicts, and inflation keep the outlook in check.
Fidelity’s Jurrien Timmer shared his take on the market:
“I believe in a positive stock market for 2025, but with high valuations, we shouldn’t expect the same outstanding returns as in recent years. There are also risks from inflation and market concentration.”
In our analysis, we focused on large-cap stocks and selected the top 12 based on their expected share price growth potential. The data is accurate as of January 31, 2025.
Microchip Technology (NASDAQ:MCHP) is a major player in the semiconductor field. It serves around 123,000 customers with solutions for embedded control and processing. The company’s market cap stands at an impressive $29.16 billion.
Recently, on January 27, Microchip introduced its second-generation Low-Noise Chip-Scale Atomic Clock (LN-CSAC), designed especially for aerospace and defense applications. This innovation highlights their dedication to tech advancements.
Microchip is not just resting on its laurels; it’s actively investing in new technologies. The latest dsPIC33A DSC core is set to revolutionize industrial automation, enhancing energy efficiency and precision in various applications.
The company is also making smart acquisitions. For instance, it bought VSI Co. Ltd., a leader in Advanced Driver-Assistance Systems (ADAS), and Neuronix AI Labs for AI-driven solutions. These moves are boosting investor confidence.
In its Q2 FY25 results, released on November 5, Microchip reported net sales of $1.164 billion. Although this was a drop from the previous quarter, it exceeded expectations with an EPS of $0.46.
With a consensus Buy rating, MCHP is considered one of the top large-cap stocks to invest in, boasting an average share price upside potential of 57.51%. Overall, it ranks 4th among the best S&P 500 stocks in our analysis. While MCHP shows great potential, some suggest there might be faster returns in AI stocks.
Disclosure: None. This article was originally published on Insider Monkey.
Check out this related article: “Unleashing Doge: How a Meme Transformed the Digital Landscape – Discover the Untold Tech Revolution!” – MotoPaddock
Source linkMicrochip Technology, President Trump, Analysts, corporate earnings reports, stock market, interest rates
