Overview
- Microchip disclosed Monday that its newly reported Data Center Solutions unit generated $302.7 million in 2025 and is on pace to grow roughly 65% in 2026 to about $500 million.
- The business posted 62.9% year‑over‑year growth in the March 2026 quarter, a concrete sign management says the expansion is already under way.
- The company introduced XpressConnect PCIe 6.0 and CXL 3.1 retimers and highlighted product families for storage controllers, memory controllers, and PCIe/CXL switches that target AI data‑center deployments.
- Microchip said it will implement selective price increases to protect margins without changing guidance for the quarter ending June 30, 2026, and the announcement sent shares up about 14% in after‑hours trading while several analysts raised earnings estimates.
- The data‑center business sits inside a broader ‘Data center and Compute’ market that represented roughly 18% of company revenue, which could increase the unit’s strategic importance for customers, suppliers, and investors as AI infrastructure demand grows.