Microchip Technology Primed for AI-Powered Comeback in 2026

As of November 11th, 2025, Microchip Technology (NASDAQ: MCHP) is poised for a comeback, with the company aligning its business to capitalize on the growing demand for AI infrastructure. The story in 2025 is one of end-market normalization and signs of improving momentum, as the company nears a critical pivot point.

Revenue growth is expected to resume in the current quarter, and there are reasons to believe demand trends will improve over time. Not only have end markets normalized, but AI-focused demand is broadening into a wider array of industries that will require Microchip Technology's embedded semiconductor and power control products.

A key development in the company's fiscal Q2 was the launch of the new Gen 6 PCIe switch, which is explicitly designed to handle intense data center workloads, enabling quick communication between CPUs, GPUs, and storage devices. The initial market response has been positive, and production is expected to reach commercial scale by mid-2026, with a ramp-up into the end of the year.

Despite near-term volatility and conservative guidance, Microchip Technology's alignment with AI infrastructure growth, operational resilience, and high institutional ownership position it for an earnings rebound and stock recovery into 2026.