Microchip's Data Center Revenue Grew 98% Last Quarter. Here's Why It's Guiding to $1 Billion for the Year.
The company built its name on microcontrollers. Its fastest-growing end market is now the data center.
Overview
Microchip Technology (NASDAQ: MCHP) built its business on microcontrollers (the small, inexpensive chips that run factory equipment and cars). So it may come as a surprise that the company's fastest-growing end market right now is the data center.
On the company's Aug. 6 earnings call, management said data center revenue grew 97.8% year over year in the fiscal first quarter, after growing 77% in the quarter before. And the company now expects its total data center portfolio to reach about $1 billion in calendar 2026, up 69.3% from last year.
Details
Investors noticed. Shares of the microcontroller specialist jumped about 14% on Friday to about $85, capping a week in which it reported a quarter that was strong well beyond the data center.
Source
Originally published at www.fool.com.