| Microchip Technology (MCHP) | Stock price: $67.06 | Market cap: $37.3bn |
Semiconductor demand remains hot, but it is not just AI pumping the gas. Microchip Technology (MCHP) reported widespread interest and orders from across the tech industry that saw the $37 billion firm’s stock surge nearly 4%. Because semiconductor demand remains hot, Microchip faces great growth potential.
Microchip reported overnight Q3 sales that surpassed previous guidance. The semis manufacturer announced that it expects net sales of approximately $1.19 billion for Q3 ended 31 December 2025, reflecting how semiconductor demand remains hot across various sectors.
Beating forecasts
That’s well ahead of original guidance range of $1.11 billion to $1.15 billion provided in November. The company had already told the markets in early December that sales would be at the high end of the original range.
Microchip CEO Steve Sanghi attributed the strong performance to ‘a fairly broad-based recovery in most of our end markets.’ This recovery is further proof that semiconductor demand remains hot. This is thanks to an accelerated inventory correction in its distribution channels and direct customers, plus new customer designs moving into production.
Despite the holiday season, Sanghi noted that bookings activity remained robust during the December quarter.
This is very encouraging news from one of the semis industry’s bellwether suppliers.
Microchip provides clever embedded controls to industries as diverse as industrial automation, automotive, aerospace and defence, communications, consumer electronics, computing and more.
It will certainly help prop-up investor confidence that semis industry stocks will continue to outperform at a time when some have started to worry about a bubble in the space, particularly around AI.
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