Microchip guides to $1 billion data center revenue after 98% quarterly growth

Microchip Technology reported that revenue from its data center end market grew 98% in the most recent quarter and said it expects the segment to reach roughly $1 billion for the full fiscal year. The company built its business on microcontrollers and analog parts sold into industrial, automotive and consumer applications. Data center is now its fastest-growing end market, driven by demand for the connectivity, timing, storage controller and power management components used in AI server build-outs. A $1 billion target would make data center a materially larger share of group revenue than in prior years, and comes as Microchip's more traditional industrial and automotive channels have worked through an extended inventory correction.