Microchip's Data Center Solutions Unit Expected to Grow 65% in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 01 2026
0mins
Source: Newsfilter
Microchip Technology Inc's stock rose by 9.18% in pre-market trading as it crossed above its 5-day SMA, reflecting positive investor sentiment.
The company's Data Center Solutions unit is projected to grow by approximately 65% to around $500 million in 2026, following a revenue of $302.7 million in 2025. This growth is driven by strong demand for its products and strategic focus on expanding market share in the data center segment. Additionally, Microchip plans to implement selective price increases to offset rising costs, which will not affect its previously issued guidance for Q1 FY2027.
This anticipated growth in the data center segment highlights Microchip's competitive position and innovation in technology, suggesting a strong outlook for the company as it continues to adapt to market demands.
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Analyst Views on MCHP
Wall Street analysts forecast MCHP stock price to fall
18 Analyst Rating
13 Buy
5 Hold
0 Sell
Moderate Buy
Current: 94.110
Low
60.00
Averages
77.47
High
95.00
Current: 94.110
Low
60.00
Averages
77.47
High
95.00
About MCHP
Microchip Technology Incorporated is a provider of smart, connected, and secure embedded control solutions. The Company’s semiconductor products segment designs, develops, manufactures and markets mixed-signal microcontrollers, development tools and analog, interface, mixed-signal, timing, wired and wireless connectivity devices, and memory products. The Company's technology licensing segment includes sales and licensing of the Company's intellectual property. Its products include PIC64 Microprocessors, FPGAs, myMicrochip, MPLAB X IDE, Analog, and Microcontrollers. Its development tools include Atmel START and MPLAB Discover. Its manufacturing operations include wafer fabrication, wafer probe, assembly, and test. The Company’s solutions serve customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. The Company markets and sells its products worldwide primarily through a network of direct sales personnel and distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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