{"slug": "microchip-technology-reports-98-growth-in-data-center-revenue-last-quarter", "title": "Microchip Technology reports 98% growth in data center revenue last quarter", "summary": "Microchip Technology reported 98% year-over-year growth in data center revenue for Q1 of fiscal year 2027, with total net sales reaching $1.485 billion, a 38% increase. The company is targeting approximately $1 billion in total data center revenue by the end of calendar 2026, driven by demand for AI infrastructure and products like PCIe Gen 6 switches and CXL 3.1 retimers.", "body_md": "Photo: NobbiP / Wikimedia Commons / CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0/)\n\n# Microchip Technology reports 98% growth in data center revenue last quarter\n\nThe chipmaker is now targeting $1 billion in data center revenue by the end of calendar 2026, fueled by surging AI infrastructure demand\n\nMicrochip Technology just posted a number that would make most semiconductor companies jealous. The company’s data center revenue nearly doubled year-over-year in its most recent quarter, growing 98% as hyperscale operators and enterprise buyers race to build out AI infrastructure.\n\nTotal net sales for Q1 of fiscal year 2027 hit $1.485 billion, a 38% jump compared to the same period last year. Non-GAAP earnings per share came in at $0.76.\n\n## From niche player to billion-dollar contender\n\nIn calendar 2025, the Data Center Solutions segment generated $302.7 million in revenue. Broader data center exposure for the full calendar year reached $591 million.\n\nThe company is guiding toward approximately $1 billion in total data center revenue by the end of calendar 2026, representing roughly 69% growth from the $591 million baseline.\n\nSanghi pointed to the March 2026 quarter as evidence of sustained acceleration, noting 62.9% year-over-year growth in that period. For all of calendar 2026, the company is projecting about 65% growth in its data center segment, which would push revenue to around $500 million from the core Data Center Solutions unit alone.\n\n## The products driving the surge\n\nTwo product categories are doing most of the heavy lifting. Microchip has been shipping PCIe Gen 6 switches and CXL 3.1 retimers, both of which target the specific bottlenecks that emerge when you try to connect thousands of GPUs and accelerators inside a modern AI data center.\n\nBy the end of the June quarter, Microchip had secured 12 PCIe Gen 6 connectivity programs, double the number from the previous quarter.\n\n**Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our\n\n[Editorial Policy](https://cryptobriefing.com/editorial-policy/).", "url": "https://wpnews.pro/news/microchip-technology-reports-98-growth-in-data-center-revenue-last-quarter", "canonical_source": "https://cryptobriefing.com/microchip-technology-data-center-revenue-growth/", "published_at": "2026-08-10 08:42:27+00:00", "updated_at": "2026-08-10 09:13:15.446164+00:00", "lang": "en", "topics": ["ai-infrastructure", "ai-chips", "ai-products"], "entities": ["Microchip Technology", "Sanghi"], "alternates": {"html": "https://wpnews.pro/news/microchip-technology-reports-98-growth-in-data-center-revenue-last-quarter", "markdown": "https://wpnews.pro/news/microchip-technology-reports-98-growth-in-data-center-revenue-last-quarter.md", "text": "https://wpnews.pro/news/microchip-technology-reports-98-growth-in-data-center-revenue-last-quarter.txt", "jsonld": "https://wpnews.pro/news/microchip-technology-reports-98-growth-in-data-center-revenue-last-quarter.jsonld"}}