Needham analyst Rajvindra Gill raised his price target on Microchip to $140 and kept his Buy rating after its Q3 earnings beat, saying the "solid quarter" showed strength across the company's data center business, with early signs of recovery in auto and industrial IoT. The analyst also believes that Microchip has build "enough capacity" to support a return in demand and sees it on track to reach its long-term gross margin target of 63%.

BofA raised the firm's price target on Texas Instruments (TXN) to $190 from $175 and keeps a Neutral rating on the shares. TI's small Q1 beat and inline but sequentially rising Q2 sales guidance, "while modest, potentially marks a recovery inflection in industrial chip demand," with positive read-across for U.S. peers such as Analog Devices (ADI), Microchip (MCHP), NXP Semiconductors (NXPI) and On Semiconductor (ON), the analyst tells investors. However, despite an expected recovery, TI's sustained high capex intensity could keep reported calendar year 2024-26 pro-forma EPS below $6 per share, the analyst added.