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Chip stocks rallied strongly in 2025 on AI and memory tailwinds. The Philadelphia Semiconductor index ($SOX) jumped more than 40% as investors bet on accelerating data-center spending. Mizuho notes that AI infrastructure buildouts, wafer-fab equipment cycles and memory upgrades should keep the momentum going.
Within this bullish market, Microchip Technologies (MCHP) stands out. MCHP stock has climbed more than 32% over the past year. The optimisim around MCHP received another boost after Mizuho named Microchip as one of its key semiconductor outperformers for 2026, citing exposure to wafer fabrication and AI-driven demand.