Following fundamental improvements, microchip technology (MCHP) has skyrocketed

Aristotle Capital Management, LLC, The investment management company has released a 2025 investor letter for the second quarter of the Value Equity Strategy. A copy of a letter can do so I downloaded it from here. The US stock market began with volatility in the second quarter, but the S&P 500 Index rose 10.94% in the quarter, rebounding with strength. Composite returned a total cost of 4.88% (net net of 4.75% of the fee) in the first quarter, surpassing the 3.78% return on the Russell 1000 Value Index and below the 10.94% return on the S&P 500 Index. Plus, you can check out our top 5 holdings for funds to determine the best picks of 2025.

In a second quarter of 2025 investor letter, Aristotle’s capital value equity strategy was announced as Microchip Technology Incorporated (NASDAQ:MCHP). Microchip Technology Incorporated (NASDAQ: MCHP) manufactures and distributes smart, connected, secure embedded control solutions. Microchip Technology Incorporated (NASDAQ: MCHP)’s one-month return was 5.11%, and its shares have lost 13.06% of its value in the past 52 weeks. On July 22, 2025, Microchip Technology Incorporated (NASDAQ: MCHP) stock closed at $75.26 per share, with a market capitalization of $4.061.6 billion.

Aristotle’s Capital Value Equity Strategy stated in its second quarter 2025 investor letter regarding Microchip Technology Incorporated (NASDAQ: MCHP).

“Microchip technology is built in (NASDAQ: MCHP), microcontrollers (MCUs) and analog semiconductor producers were the top contributors of the quarter. After several quarters of unperformance driven by long-term customer fate, the company’s basics began to improve meaningfully as CEO Steve Sanghi’s turnaround plan is ongoing. Reservations showed signs of stabilization supported by more balanced inventory across customers and distribution channels, as well as signs of a recovery in demand for the end market. Additionally, operational implementation has improved under new leadership, with early profits generated from cost-cutting initiatives, such as the closure of Arizona wafer manufacturing facilities, and inventory management has become more stringent. Microchip’s long-standing customer relationships and enhanced product lifecycle commitment supports recurring revenues and continues to mitigate design risks. Combined with a consistent record of strong free cash flow generation and shareholder returns, this disciplined approach strengthens convictions for the company’s ability to manage through industry cycles. In the long run, we believe that the microchip remains in a good position to acquire shares in areas such as 16 and 32-bit MCUs and IoT, 5G infrastructure, autonomous vehicles, and data centers. ”