Microchip: Growth Accelerates, Margins Soar

Microchip delivers a much stronger-than-expected revenue and margin recovery, driven by broad-based end-market growth and rapid Data Center expansion. Data Center revenue surged 97.8% YoY, now the largest incremental growth driver, with management guiding for continued robust growth as new products ramp. Microchip's margin recovery outpaces forecasts, with Q1 FY2027 gross margin at 63.2% and management guiding Q2 to 66–67%, above long-term targets.