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Microchip Tech forecasts upbeat quarterly revenue on strong demand

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(Corrects share movement in fourth bullet to up 7 per cent from down 4 per cent)

Aug 6 : Microchip Technology forecast second-quarter revenue and profit above Wall Street estimates on Thursday, on strengthening demand for its chips used in AI data centers as well as the industrial, automotive and aerospace sectors.

The company has benefited from a cyclical recovery in key end-markets, including industrial and automotive, as well as surging demand from AI-related data centers, with robust aerospace- and defense-related spending fueled by geopolitical tensions.

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• For the second quarter, Microchip forecast revenue of $1.59 billion to $1.62 billion, above analysts’ average estimate of $1.55 billion, according to data compiled by LSEG.

• Its adjusted earnings per share forecast of $0.91 to $0.95 was also above analysts’ average estimate of $0.79.

• The company reported first-quarter revenue of $1.49 billion, topping analysts’ estimate of $1.46 billion, while its adjusted profit of $0.76 per share also beat estimates of $0.69.

• The Chandler, Arizona-based company’s shares were up 7 per cent after the bell.

• Peer Onsemi on Monday forecast third-quarter revenue above Wall Street expectations, betting on surging demand for power management chips used in AI data centers.

Source: Reuters

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