The semiconductor firm projects data center revenue to approach $1B by 2026 amid strong demand for its products.
Microchip Technology expects September-quarter sales to rise 8% sequentially, with non-GAAP earnings per share between $0.91 and $0.95. The outlook reflects robust demand across its data center and catalog product lines.
The company previously reported mixed results but highlighted accelerating growth in its Data Center Solutions unit. Analysts had anticipated a modest uptick, though the guidance exceeds some estimates for the period.
Microchip also projected its data center business will near $1B in annual revenue by 2026, driven by expanding adoption of its semiconductor solutions.