7. Microchip Technology Inc. (NASDAQ:MCHP)
Microchip Technology Inc. (NASDAQ: MCHP) lands at No. 7 among the best large-cap stocks to buy under $100, and this name brings investors straight into the semiconductor conversation. Trading at $93.85, down 3.29% based on the provided data, Microchip is not the loudest chip stock in the market, but it plays an important role in smart, connected, and secure embedded control solutions. For investors searching for semiconductor stocks under $100, AI stocks, data center stocks, large-cap technology stocks, chip stocks to buy, and best tech stocks under $100, Microchip offers a more grounded semiconductor story tied to microcontrollers, analog products, connectivity, memory, and design wins across high-growth end markets.
On May 7, Microchip reported fiscal fourth-quarter 2026 net sales of $1.311 billion, up 35.1% year-over-year. The company also posted GAAP earnings per share of $0.21 and non-GAAP earnings per share of $0.57, exceeding prior guidance. That matters because the semiconductor industry has been working through inventory corrections, demand normalization, and shifting customer order patterns. When a chip company delivers results above guidance and points to improving demand, investors tend to pay attention.
For the full fiscal year 2026, Microchip generated net sales of $4.713 billion, up 7.1%. The company posted GAAP net income of $118.8 million, or $0.22 per diluted share, and non-GAAP net income of $933.9 million, or $1.64 per diluted share. The wide gap between GAAP and non-GAAP earnings is something investors should always examine carefully, but the broader message is clear: Microchip returned to stronger revenue growth and showed that its recovery plan is gaining traction.
One of the most important parts of Microchip’s update was its inventory reduction. The company reduced inventory by $320.9 million from its peak in late 2024, bringing days of inventory down to 185 days. In the semiconductor business, inventory is not a boring accounting detail. It is often one of the biggest signals of where the cycle is headed. Too much inventory can pressure pricing, production schedules, margins, and cash flow. Lower inventory can suggest that customer demand and internal production levels are getting healthier. Microchip’s inventory progress therefore supports the idea that the company is moving beyond the worst of its recent correction.
The company also returned $984.0 million to shareholders through dividends. That is a meaningful figure for investors looking for large-cap technology companies that combine cyclical recovery with capital returns. Many semiconductor stocks are valued heavily on growth potential, but shareholder returns can help support investor confidence, especially during periods when the market is debating whether chip demand is sustainable or too cyclical.
Microchip’s improving outlook is also tied to demand conditions, customer inventory normalization, and design wins in data center and AI applications. This part of the story is important for SEO and investor interest because artificial intelligence has changed the market’s perception of semiconductor demand. While the most famous AI chip names usually get the headlines, the AI ecosystem is broader than GPUs alone. Data centers need power management, connectivity, timing, control systems, microcontrollers, sensors, and analog components. Microchip’s portfolio touches several of these areas, making it part of the wider AI infrastructure and embedded systems supply chain.
For fiscal first-quarter 2027, Microchip expects the momentum to continue. The company forecast a net sales midpoint of $1.456 billion, representing an 11% sequential increase. Non-GAAP gross margins are expected to range from 62.25% to 63.25%, while non-GAAP EPS is expected to rise to a range of $0.67 to $0.71. The company also expects to manage full-year capital expenditures at around $100 million. That combination of higher sequential sales, strong gross margin expectations, and controlled capital spending could support operating leverage if demand continues to improve.
Microchip designs, develops, manufactures, and markets mixed-signal microcontrollers, development tools, analog and interface products, timing and connectivity devices, and memory products. The trivia here is that embedded chips are often invisible to ordinary consumers, but they are everywhere in modern life. They can be found in industrial machines, automobiles, home appliances, communications equipment, medical devices, data centers, and connected systems. That makes Microchip less glamorous than some high-profile AI semiconductor names, but potentially more diversified than investors may initially realize.
For long-term investors studying best large-cap stocks under $100, Microchip offers a semiconductor recovery angle without relying entirely on hype. The risk is that the chip industry remains cyclical and can be sensitive to inventory, pricing, and end-market demand. The opportunity is that Microchip appears to be moving into a better demand environment while improving factory utilization and benefiting from design wins tied to AI and data center applications. In a market where investors are searching for tech stocks that still trade below $100, Microchip remains a strong candidate to watch.
Click next to see the following stock...
