Microchip Technology Reports Q2 2027 Results with Strong Year-over-Year Revenue Growth
Microchip Technology (MCHP) reported second quarter fiscal 2027 net sales of $1.622 billion, marking a significant 42.2% increase year-over-year and a 9.2% sequential rise. The growth was driven by robust performance in the Data Center segment (+55.7%) fueled by AI infrastructure demand, and the Industrial segment (+50.3%), which saw recovery across various sub-sectors. Despite strong top-line growth, management issued cautious guidance for the December quarter, projecting a slight sequential revenue decline at the midpoint and lower gross margins due to capacity constraints and the non-recurrence of high-margin licensing items. CEO Steve Sanghi highlighted supply chain challenges, noting that AI demand is displacing capacity at major OSAT suppliers and that foundry pricing continues to rise.
Tickers: $MCHP
Topics: aerospace and defense AI infrastructure demand gross margin industrial recovery revenue growth