Why Microchip Technology's Stock Is Trading Higher Today

Microchip Technology MCHP shares are trading higher on Monday after analysts at Raymond James reiterated a Strong Buy rating on the stock and announced a $125 price target.

Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos.

The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.

Microchip shares were trading up 1.56% at $108.27 at the time of publication on Monday. The stock has a 52-week high of $113.28 and a 52-week low of $53.15.