Microchip Tech forecasts upbeat quarterly revenue on strong demand

(Corrects share movement ‌in fourth ​bullet ​to up 7% from down 4%)

Aug 6 (Reuters) - Microchip Technology forecast second-quarter revenue ‌and profit above Wall Street estimates on ⁠Thursday, on strengthening demand for its chips used in ‌AI data centers as ‌well as the industrial, automotive and aerospace sectors.

The company has benefited from a cyclical ​recovery in key end-markets, including industrial and automotive, as well as surging demand from ⁠AI-related data centers, with robust aerospace- and defense-related spending fueled ​by geopolitical tensions.

Here are some details:

• For the second quarter, Microchip forecast revenue ​of $1.59 billion to $1.62 billion, above ‌analysts' average estimate of $1.55 billion, according to data compiled by LSEG.

• Its ⁠adjusted earnings per share forecast of $0.91 to $0.95 was also above analysts' average estimate of $0.79.

• The company ⁠reported first-quarter revenue of $1.49 billion, topping analysts' estimate of $1.46 ​billion, while its adjusted profit of $0.76 per share also beat estimates of $0.69.

• The Chandler, Arizona-based company's shares were ‌up 7% after the bell.

• Peer Onsemi on Monday forecast third-quarter revenue ‌above Wall Street expectations, betting on surging ⁠demand for power ‌management chips used ​in AI data centers.

(Reporting by Nithyashree R B in Bengaluru; Editing by Savio ‌D'Souza)

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