A Microchip logo appears in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration

Microchip Tech forecasts upbeat quarterly revenue on strong demand

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Aug 6 : Microchip Technology forecast second-quarter revenue and profit above Wall Street estimates on Thursday, on strengthening demand for its chips used in AI data centers as well as the industrial, automotive and aerospace sectors.

The company has benefited from a cyclical recovery in key end-markets, including industrial and automotive, as well as surging demand from AI-related data centers, with robust aerospace- and defense-related spending fueled by geopolitical tensions.

Here are some details:

• For the second quarter, Microchip forecast revenue of $1.59 billion to $1.62 billion, above analysts' average estimate of $1.55 billion, according to data compiled by LSEG.

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• Its adjusted earnings per share forecast of $0.91 to $0.95 was also above analysts' average estimate of $0.79.

• The company reported first-quarter revenue of $1.49 billion, topping analysts' estimate of $1.46 billion, while its adjusted profit of $0.76 per share also beat estimates of $0.69.

• However, the Chandler, Arizona-based company's shares were down 4 per cent after the bell.

• Peer Onsemi on Monday forecast third-quarter revenue above Wall Street expectations, betting on surging demand for power management chips used in AI data centers.

Source: Reuters

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