Microchip Technology and onsemi Stocks Trade Up, What You Need To Know

July 15, 2026 - 09:51

Shares of Microchip Technology and onsemi moved higher during afternoon trading on Wednesday, following a June inflation report that came in below expectations and an unexpected capital spending warning from IBM that some analysts interpreted as a positive signal for AI hardware demand.

The core Consumer Price Index for June showed no change from the previous month, landing at 2.6% year-over-year. That was notably lower than the 2.9% that economists had forecast. The softer reading has revived hopes that the Federal Reserve may take a more accommodative stance on interest rates in the coming months.

Meanwhile, IBM issued a surprise caution about its capital expenditure plans, which investors took as a sign that big tech companies are still pouring money into artificial intelligence infrastructure. That interpretation helped lift semiconductor stocks like Microchip and onsemi, both of which are tied to the broader chip supply chain.

The combination of easing inflation pressure and sustained AI investment appetite gave the sector a boost. For now, the market appears to be betting that lower rates and strong demand for computing hardware can coexist, at least in the near term.