Microchip Technology reported 98% year-over-year growth in data center revenue last quarter, driven by surging demand for AI infrastructure from hyperscale operators and enterprise buyers. The company generated $591 million in total data center revenue in calendar 2025, with the core Data Center Solutions segment accounting for $302.7 million. Microchip is guiding toward approximately $1 billion in total data center revenue by the end of calendar 2026, representing roughly 69% growth from the $591 million baseline. PCIe Gen 6 switches and CXL 3.1 retimers are the primary products fueling this surge, addressing specific bottlenecks when connecting thousands of GPUs and accelerators in modern AI data centers. By the end of the June quarter, Microchip had secured 12 PCIe Gen 6 connectivity programs, double the number from the previous quarter.
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