Microchip Technology Inc. (NASDAQ:MCHP) shares climbed in Monday’s extended trading after the chipmaker dropped a closely-watched press release breaking out its Data Center Solutions Business Unit revenue for the first time with specificity — and the numbers are hard to ignore.
- MCHP stock is climbing. See the chart and price action here.
Data Center Revenue to Grow 65%
The company disclosed that its Data Center Solutions Business Unit generated $302.7 million in revenue for calendar year 2025.
More important to investors: CEO Steve Sanghi said the unit is on pace to grow roughly 65% in calendar year 2026, implying approximately $500 million in annual revenue from the segment alone.
In the March 2026 quarter, the business unit was already up 62.9% year-over-year — confirming the acceleration is not a forecast, it’s happening now.
The unit is focused exclusively on datacenter infrastructure, with three dedicated product families: storage controllers, expanders and accelerators; PCIe and CXL memory controllers; and its Switchtec PCIe switch and retimer lines.
Sanghi also addressed the broader data center picture. The company’s wider “Data center and Compute” end market — which pulls in catalog MCUs, analog, power management, timing, memory, and security products — represents about 18% of total company revenue, giving investors a fuller picture of MCHP’s exposure to the AI infrastructure buildout.
One additional catalyst: Microchip announced it will implement selective price increases across its product portfolio, citing broad-based input cost pressures it cannot fully absorb.
The company noted the increases will not affect guidance for the fiscal quarter ending June 30, 2026 — framing it as a margin-protective move rather than a demand risk.
MCHP Stock Price Activity: Microchip Technology shares were up 10.36% at $101 during after-hours trading on Monday, according to Benzinga Pro.
Login to comment