Microchip Technology reports data center growth as Axon overtakes it in market cap

Microchip Technology reported significant growth in its data center segment, with revenue increasing 97.8% year-over-year in the fiscal first quarter. The company expects its total data center portfolio to reach approximately $1 billion in calendar 2026. This growth is part of a broader recovery for the semiconductor specialist, which saw net sales rise 38% year-over-year to $1.485 billion for the quarter ending June 30, 2026.

In a related market development, Axon Enterprise has overtaken Microchip Technology in S&P 500 market capitalization rankings. Axon's market cap reached $46.39 billion, surpassing Microchip Technology's $45.99 billion. While the companies operate in different sectors—Axon in public safety technology and Microchip in semiconductors—the shift reflects differing investor valuations and growth expectations within the large-cap market.