Microchip Technology forecast second-quarter revenue and profit above Wall Street estimates. The Chandler, Arizona-based company cited strengthening demand for its chips in AI data centers, industrial, automotive, and aerospace sectors.
The company's first-quarter revenue reached $1.49 billion, exceeding an analyst estimate of $1.46 billion. During the same period, Microchip reported adjusted profit of $0.76 per share, surpassing the $0.69 estimate.
Microchip's Q1 FY2027 revenue grew 38%, a surge driven by the data center market. The company said it has benefited from a cyclical recovery in key end-markets and robust aerospace- and defense-related spending fueled by geopolitical tensions.
Second-quarter guidance
For the second quarter, Microchip Technology forecast revenue between $1.59 billion and $1.62 billion, which is higher than the $1.55 billion average estimate compiled by LSEG. The company also projected adjusted earnings per share of $0.91 to $0.95, compared to the analysts' average estimate of $0.79.
Growth in Microchip's Q1 FY2027 revenue driven by data center surge
Market reaction and sector trends
Following the report, there were conflicting reports regarding share performance. While some sources reported that Microchip's shares fell 4% after the bell, others reported that the shares rallied in after-hours trading.
The semiconductor outlook was also influenced by Onsemi, which on Monday forecast third-quarter revenue above Wall Street expectations based on demand for power management chips used in AI data centers.
