# Microchip Technology reports 98% growth in data center revenue last quarter > Source: > Published: 2026-08-10 08:42:27+00:00 Photo: NobbiP / Wikimedia Commons / CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0/) # Microchip Technology reports 98% growth in data center revenue last quarter The chipmaker is now targeting $1 billion in data center revenue by the end of calendar 2026, fueled by surging AI infrastructure demand Microchip 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. Total 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. ## From niche player to billion-dollar contender In 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. The 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. Sanghi 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. ## The products driving the surge Two 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. By the end of the June quarter, Microchip had secured 12 PCIe Gen 6 connectivity programs, double the number from the previous quarter. **Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our [Editorial Policy](https://cryptobriefing.com/editorial-policy/).