Microchip posts strong revenue and margin growth, led by Data Center surge and robust product demand.

Microchip reported a much stronger-than-expected recovery in revenue and profit margins, driven by broad growth across end markets and a nearly 98% year-over-year surge in Data Center revenue, now the main growth driver. The company’s gross margin for Q1 FY2027 reached 63.2%, surpassing forecasts, with management guiding for even higher margins of 66-67% in Q2, above long-term targets. This robust performance reflects rapid expansion in Data Center products and improving distributor inventory levels, signaling continued growth potential for Microchip.

Microchip Technology Inc. (MCHP) trades at USD 74.25 on Pluang as of Sep 22, 2026 13:41 WIB, down 0.71% for the day. Despite the recent strong revenue and margin growth reported, the stock remains below its 52-week high of USD 102.97. Market activity on Pluang shows a majority of sell orders at 82%, reflecting cautious investor sentiment even as the company guides for higher margins ahead.