Can Microchip's Micron Alliance Help it Challenge AVGO & ALAB?
MCHP's Micron alliance combines PCIe Gen 6 switches and SSDs to boost AI data-center reach and challenge Broadcom and Astera Labs.

Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia. ...
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$1.82 per share
Est. EPS $0.94 · Revenue $1.62B · 15 analysts
Est. EPS $1.00 · Revenue $1.69B · 6 analysts
Est. EPS $3.64 · Revenue $6.40B · 16 analysts
$1.82 per share
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $4.7B | +7.1% | +13.2% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $202.2M | +40540.0% | +59.4% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +57.7% | +3.0% | +3.7% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +10.4% | +54.5% | +40.9% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +4.3% | +37867.2% | +40.7% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $871.0M | +12.8% | +104.9% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +18.5% | +5.4% | +81.0% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 86.1% | +7.5% | -2.7% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 2.09x | -19.2% | -8.2% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $14.4B | -6.5% | +0.3% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 0.26 vs 1.57 | -83.4% | 0.37 vs 0.94 | -60.7% |
| Revenue Surprise | $4.7B vs $4.7B | +1.0% | $1.5B vs $1.6B | -8.5% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Sep 1, 2026 | Krawczyk Joseph R II | officer: SR. CORP VP, WW CLIENT ENGMT | Common Stock | A | 41 | $60.70 |
| Sep 1, 2026 | Duvenhage Stephanus | officer: Sr. Corp VP, Analog Bus Unit | Common Stock | A | 123 | $60.70 |
| Sep 1, 2026 | Bunker Mathew B | officer: SR CORPORATE VP, OPERATIONS | Common Stock | A | 53 | $60.70 |
| Aug 25, 2026 | Bjornholt James Eric | officer: SENIOR CORPORATE VP AND CFO | Common Stock | D | 4,112 | $75.32 |
| Aug 18, 2026 | Duvenhage Stephanus | officer: Sr. Corp VP, Analog Bus Unit | Common Stock | — | 0 | — |
Operator : Good afternoon, ladies and gentlemen, and welcome to Microchip's Q1 Fiscal Year 2027 Financial Results Conference Call. [Operator Instructions] This call is being recorded on Thursday, August 6, 2026. I would now like to turn the conference over to Mr. Steve Sanghi, President and CEO. Please go ahead. Steve Sanghi : Thank you, operator and good afternoon, everyone. During the course of this conference call, we will be making projections and other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions and that actual events or results may differ materially. We refer you to our press release of today as well as our recent filings with the SEC that identify important risk factors that may impact Microchip's business and results of operations. In attendance with me today are Eric Bjornholt, Microchip's CFO, and Sajid Daudi, Microchip's Head of Investor Relations. I will provide a new breakout of our net sales by end markets, including further information on our total data center exposure. Eric will then go over our financial performance. I will then provide an overview of the current business environment and our guidance for second quarter of fiscal year 2027. We will then be available to respond to specific investor and analyst questions. So let us begin with providing you with a further update on our exposure to the data center market. On June 1, 2026, we provided you a breakdown of our net sales from our Data Center Solutions business unit for calendar year 2025, which we said was $302.7 million. We also said that in addition to these net sales from the Data Center Solutions business unit, we have many catalog products from various business units that also have exposure to data centers. In the last couple of months, we have worked to pull together an estimate for this additional exposure to the data center market from these catalog products from various business units. These additional products include our power management analog products, mixed-signal products, microcontrollers, digital signal controllers, security products, FPGAs, timing products and Serial Quad I/O memory products. The additional net sales from data centers for various business units for calendar year 2025 was approximately $288 million. This makes the total net sales from data centers for calendar year 2025 for all Microchip products to be approximately $591 million. And that was the $303 million approximately from Data Center Solutions business unit and $288 million from all other catalog products for a total of $591 million. This was approximately 14% of our net sales for calendar year 2025. We have also estimated the data center sales growth expected in calendar year 2026. We earlier told you that our net sales from Data Center Solutions business unit is expected to be about $500 million for calendar year 2026. Now our net sales from the products from all …
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Stephen Sanghi | Chief Executive Officer, President & Chair of the Board | USD 2,215,532 | Male | 1956 | Active |
Richard J. Simoncic | Chief Operating Officer | USD 497,197 | Male | 1964 | Active |
James Eric Bjornholt | Senior Corporate Vice President & Chief Financial Officer | USD 441,820 | Male | 1971 | Active |
Joseph R. Krawczyk | Senior Corporate Vice President of Worldwide Client Engagement | USD 391,476 | Male | 1960 | Active |
Mathew Bunker | Senior Corporate Vice President of Operations | USD 371,168 | Male | 1970 | Active |
Michael A. Finley | Senior Corporate Vice President of Operations | USD 371,168 | Male | — | Active |
Mark W. Reiten | Senior Corporate Vice President of Licensing, Memory Products and Edge AI Business Units | — | Male | — | Active |
Brian McCarson | Corporate Vice President and GM of the Data Center Solutions BU | — | Male | — | Active |
Fanie Duvenhage | Senior Corporate Vice President of Analog Business Units | — | Male | — | Active |
Matthias Kaestner | Corporate Vice President, Automotive, Data Center & Networking Business Units | — | Male | — | Active |
Apurva Peri | Senior Product Marketing Engineer | — | Female | — | Active |
Patrick F. Johnson | Senior Corporate Vice President, FPGA & Timing Business Units | — | Male | — | Active |
Sajid Daudi | Head of Investor Relations | — | Male | — | Active |
Lauren A. Carr | Senior Corporate Vice President of Global Human Resources | — | Female | — | Active |
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