Microchip Technology forecast stronger-than-expected revenue and earnings for the second quarter, driven by demand from AI data centres and recovering industrial and automotive markets. The chipmaker expects second-quarter revenue between $1.59 billion and $1.62 billion, above the analysts’ consensus estimate of $1.55 billion, with adjusted earnings projected at $0.91 to $0.95 per share, exceeding the market expectation of $0.79 per share. This follows a first-quarter performance with revenue of $1.49 billion, ahead of the estimated $1.46 billion, and adjusted earnings of $0.76 per share, surpassing the forecast of $0.69 per share. The company cited improving conditions in its industrial and automotive businesses, recovering from a cyclical slowdown, alongside rapid investment in AI infrastructure boosting demand for data centre chips. Continued strength in aerospace and defence was supported by higher global defence spending amid geopolitical uncertainties. Following the announcement, Microchip’s shares rose about 7% in after-hours trading. The results add to signs of improving momentum across the semiconductor industry, after peer Onsemi issued a better-than-expected revenue outlook for the third quarter earlier this week, citing robust demand for power management chips in AI data centre applications.