The chipmaker forecast revenue and earnings above Wall Street estimates, driven by growing demand from AI data centres alongside recovering industrial and automotive markets.
Microchip Technology has projected stronger-than-expected revenue and earnings for the second quarter, reflecting growing demand for its semiconductor products across artificial intelligence (AI) data centres, industrial automation, automotive, aerospace and defence markets.
The chipmaker expects second-quarter revenue to range between $1.59 billion and $1.62 billion, exceeding analysts’ consensus estimate of $1.55 billion. Adjusted earnings are projected at $0.91 to $0.95 per share, well above the market expectation of $0.79 per share.
The upbeat guidance follows a solid first-quarter performance, with revenue reaching $1.49 billion, ahead of the estimated $1.46 billion. Adjusted earnings came in at $0.76 per share, surpassing analysts’ forecast of $0.69 per share.
Microchip has benefited from improving conditions across its traditional industrial and automotive businesses, which are recovering from a cyclical slowdown. At the same time, rapid investment in artificial intelligence infrastructure has boosted demand for chips used in AI data centres. The company is also seeing continued strength in aerospace and defence, supported by higher global defence spending amid ongoing geopolitical uncertainties.
Following the earnings announcement and optimistic outlook, Microchip Technology’s shares rose about 7 per cent in after-hours trading.
The results add to signs of improving momentum across the semiconductor industry. Earlier this week, peer Onsemi also issued a better-than-expected revenue outlook for the third quarter, citing robust demand for power management chips deployed in AI data centre applications.
The latest guidance from Microchip suggests that AI-driven infrastructure spending, alongside the recovery in industrial and automotive markets, continues to support growth for semiconductor manufacturers despite broader macroeconomic uncertainties.
