Microchip Technology (MCHP) — Earnings Preview

1. Earnings Preview

Key Takeaway: Setup leans toward a beat — MCHP guided Q1 FY2027 revenue up ~11% sequentially (well above seasonal) with consensus sitting just below guidance midpoint, and the biggest swing factor is whether PCIe Gen 6 ramp timing and aerospace & defense momentum can sustain the above-seasonal trajectory into the September quarter.

The bar heading into Q1 FY2027 is achievable but not low: management guided revenue up ~11% sequentially (to roughly $1.455B at the midpoint), representing ~35% year-over-year growth, and consensus at ~$1.458B sits essentially in line with guidance — leaving little room for a miss but also limited upside from estimate compression alone. Management's tone on the May 7 call was the most confident in years: April was described as the largest booking month in nearly four years, September quarter backlog was already tracking above where June backlog stood at the same point, and distribution inventory corrected below normal levels with restocking expected to begin. Estimate revisions have moved sharply higher since the Q4 FY2026 print — the post-earnings baseline for Q1 FY2027 non-GAAP EPS was ~$0.70 and consensus has held near that level, while revenue estimates have been revised up modestly, suggesting the Street has largely priced in the guided step-up. The stock has underperformed significantly since the May 7 earnings date, declining roughly 23% versus SOXX up ~8% and SPY up ~5%, reflecting broader semiconductor sector rotation and investor skepticism about the sustainability of the recovery — this creates a potentially asymmetric setup if the print confirms the demand inflection. The key wildcard is PCIe Gen 6 switch revenue recognition timing: management guided for small initial shipments in the June quarter with a major ramp next year, and any pull-forward or incremental design win disclosure (now at 8 wins, up from 6) could be the catalyst that re-rates the data center narrative.

2. KPIs & Consensus Expectations

Key Takeaway: Consensus is essentially in line with guidance midpoints on both revenue and EPS, making this a print-to-guidance quarter — the bigger swing factor is non-GAAP gross margin (guided 62.25–63.25%), where underutilization charge trajectory and mix shift from high-margin data center/FPGA products will determine whether MCHP continues its march toward the 65% long-term target.

Table 1 — Q1 FY2027 Current Quarter Snapshot (All Key KPIs)

Sources: Visible Alpha consensus and actuals for Revenue, Gross Profit, Operating Income, EPS, FCF, CapEx. Guidance from MCHP Q4 FY2026 earnings call (May 7, 2026). YoY comparisons use Q1 FY2026 actuals from Visible Alpha.

Table 2 — Beat/Miss History (Last 8 Quarters, Top 2 KPIs: Revenue & Non-GAAP EPS)

Pattern: MCHP has beaten consensus on both revenue and non-GAAP EPS in each of the last four reported quarters (Q1–Q4 FY2026), with EPS beats ranging from +3% to +12% and revenue beats consistently in the low single-digit percent range. The magnitude of beats has been expanding as the recovery accelerates, suggesting management has been guiding conservatively. Source: Visible Alpha actuals vs. consensus.

3. Guidance & Commentary Evolution

Key Takeaway: Guidance has not been formally revised since the May 7 earnings call, but management provided incremental positive signals at the BofA Global Technology Conference on June 2 — notably disclosing two additional PCIe Gen 6 design wins (now 8 total, up from 6) and confirming September quarter backlog is already tracking above June quarter backlog at the same point in time, reinforcing the above-seasonal growth trajectory.

4. Guidance vs. Estimate Revision Tracker

Key Takeaway: Estimates for Q1 FY2027 have been revised modestly higher since the May 7 post-earnings baseline, with revenue consensus up ~+0.2% and EPS consensus essentially flat — the Street has largely absorbed the guidance step-up without meaningful further upward revision, suggesting the bar is set but not stretched. For FY2027, estimates have also moved up slightly, consistent with the improving demand trajectory.

Estimates have been remarkably stable since the post-earnings baseline, with virtually no revision in either direction for Q1 FY2027 — the Street has priced in the guided step-up and is waiting for the print to confirm. The modest +1.5% upward revision to FY2027 EPS reflects incremental confidence in the multi-quarter recovery trajectory. Source: Visible Alpha consensus as of May 12, 2026 (baseline) and August 5, 2026 (current).

5. Stock Performance

Key Takeaway: MCHP has dramatically underperformed since the May 7 earnings date, declining ~23% vs. SOXX +8% and SPY +5% — the gap is driven almost entirely by multiple compression and sector rotation rather than estimate cuts (which have been minimal), creating a potentially attractive setup if the Q1 FY2027 print confirms the demand inflection and PCIe Gen 6 ramp.

MCHP vs. SOXX vs. SPY — Indexed to 100 at May 7, 2026 (Last Earnings Date). Source: Yahoo Finance.

Key observations: (1) MCHP opened the post-earnings period at 100 (closing price $101.58 on May 7) and has declined to ~$77.79 by August 4, 2026 — a loss of ~23.4% in absolute terms. (2) SOXX rallied ~8% over the same period, driven by AI infrastructure enthusiasm and strong prints from TXN, NXPI, and LSCC, making MCHP's underperformance even more stark. (3) SPY gained ~5%, reflecting a broadly constructive macro backdrop. (4) The stock briefly touched ~$102.71 on June 22 (near the BofA conference where additional PCIe Gen 6 design wins were disclosed) before selling off sharply in late June and July. (5) The underperformance is not estimate-driven — consensus has barely moved — suggesting the market is applying a lower multiple to the recovery story, possibly due to concerns about the pace of gross margin recovery and the timing of PCIe Gen 6 revenue ramp.

6. Material News & Developments

Key Takeaway: The most important post-earnings development is the expansion of PCIe Gen 6 design wins to 8 (from 6) and the formal entry into the PCIe retimer market with one OEM design win — together these materially expand the data center revenue opportunity and validate MCHP's technology leadership narrative heading into the print.

• June 2, 2026 — BofA Global Technology Conference: Management disclosed two additional PCIe Gen 6 switch design wins (now 8 total, up from 6 at earnings). One design win alone expected to generate >$100M in revenue when in production next year. Also formally released the XpressConnect PCIe retimer (supporting PCIe 6.0 and CXL 3.1) and confirmed one major OEM design win.
• June 2, 2026 — PCIe Retimer Market Entry: MCHP entered the PCIe retimer market with the XpressConnect companion die, designed as an industry-standard drop-in solution to reduce single-vendor dependency risk for hyperscalers. Supports backward compatibility with PCIe Gen 3/4/5. Revenue at zero as volume production has not yet begun.
• May 7, 2026 — Q4 FY2026 Earnings Beat: Revenue of $1.311B beat consensus by ~3.8%; non-GAAP EPS of $0.57 beat by ~12% ($0.07 above guidance midpoint). June quarter guided up ~11% sequentially, well above seasonal norms. April described as the largest booking month in nearly four years.
• May 7, 2026 — Pricing Strategy Announced: Management formally decided to implement price increases to pass through rising foundry and assembly/test input costs. Most increases effective September 2026; primary P&L impact in the December quarter. Framed as cost pass-through, not opportunistic gouging. Competitors raised prices earlier, driving share gains to MCHP.
• May 7, 2026 — Organizational Restructuring: Consolidated from 8 technology silos into 5 unified business pillars (microcontrollers, analog, networking & connectivity, high-performance compute, AI on the edge). Designed to eliminate internal barriers and accelerate integrated product development.
• May 7, 2026 — Data Center Revenue Disclosure: Data center solutions business unit generated ~$303M in calendar 2025 and is expected to grow to ~$500M in calendar 2026 (~65% growth). Total company data center exposure estimated at ~$787M in calendar 2025.
• May 7, 2026 — Aerospace & Defense Ramp: Defense replenishment orders arriving with 12–24 month manufacturing lead times for radiation-hardened products. MCHP asked to scale up ~4x current production levels for missile and arsenal replenishment. Artemis 3 announced with thousands of MCHP products on board. Revenue ramp expected to layer in over the next fiscal year.
• May 7, 2026 — Supply Constraints Broadening: Foundry capacity tight across majority of process nodes; substrate supply constrained with shelf-life limitations. Lead times expected to extend broadly over next two quarters. Management expects many products to have no availability within 4–6 weeks within a quarter or two.
• May 7, 2026 — PCIe Gen 7 Roadmap Disclosed: Management disclosed Gen 7 is already well advanced toward release, enabled by already being on the 3nm process node used for Gen 6. Positions MCHP to maintain technology leadership continuity.
• Ongoing — Tuck-in M&A: MCHP continues small tuck-in acquisitions at ~one every 2–3 months. Recently acquired TF semiconductor driver product line from Diodes. No large transformative deals planned; preference is debt paydown and small tuck-ins.
• Ongoing — Sector Read-Through (Positive): TXN (Jul 22), NXPI (Jul 28), and LSCC (Aug 4) all reported strong beats with above-seasonal Q3 guidance, citing broad-based industrial/automotive recovery, extending lead times, and book-to-bill well above 1 — all positive read-throughs for MCHP's June quarter and September outlook.

7. Insider Transaction Activity

Key Takeaway: All post-earnings insider activity has been open-market sales — no open-market buys — with the COO (Simoncic) selling across three separate transactions totaling 20,000 shares. While the absence of buys is notable given the stock's sharp decline, the sales appear largely discretionary/routine in size and do not represent an unusual cluster that would signal fundamental concern.

Source: SEC Form 4 filings. All transactions are open-market sales (code S) or 10b5-1 planned sales. No open-market purchases were filed in the period May 7 – August 5, 2026. The CFO's sale is flagged as a 10b5-1 plan (pre-planned, obligation-driven). The COO's three sales totaling 20,000 shares are discretionary but not unusual in size relative to his remaining holdings (~130,508 shares). Director Chapman's combined 13,000 shares sold represent a more meaningful portion of his disclosed holdings (~17,665 shares remaining).

8. Peer Commentaries — Read-Through for MCHP Q1 FY2027 (June Quarter)

Key Takeaway: Peer commentary since MCHP's May 7 earnings is uniformly constructive for the June quarter and beyond — TXN, NXPI, ON, LSCC, ADI, and MPWR all reported above-seasonal results or guidance, with extending lead times, book-to-bill well above 1, and broad-based industrial/automotive/data center recovery. The read-through is strongly positive for MCHP's Q1 FY2027 print and September quarter outlook. Note: only commentary about the current reporting quarter (June 2026) or forward-looking commentary made after MCHP's last earnings (May 7, 2026) is included below.

Texas Instruments (TXN) — Q2 2026 Earnings Call, July 22, 2026

Relevance: TXN is the closest broadline analog/embedded peer to MCHP, with overlapping industrial, automotive, and data center end markets. TXN's June quarter results and September guidance are the single most important read-through for MCHP.

• Broad-based demand inflection confirmed: TXN reported Q2 2026 revenue of $5.5B, up 13% sequentially and 23% year-over-year, beating the top end of guidance. Industrial grew ~30% YoY and ~10% sequentially; automotive grew mid-teens YoY and upper single digits sequentially. Management described the demand signal as "very strong and broad" with backlog building throughout the quarter.
• Above-seasonal Q3 guidance: TXN guided Q3 2026 revenue of $5.65B–$6.15B (midpoint $5.9B), representing ~7% sequential growth — described as "above seasonal." All three key end markets (industrial, data center, automotive) expected to contribute to Q3 growth.
• Lead times extending: Lead times, which were below 13 weeks in Q2, have seen a "little bit of an uptick" of a couple of weeks due to growing demand. Management noted that when competitors quote 52-week lead times, customers start new designs with TXN — a dynamic MCHP is also benefiting from.
• Customers not yet building inventory: "I do believe that customers are early and have not yet [started] building inventory, so I think the setup is very positive." This directly supports MCHP's thesis that the restocking cycle has not yet begun, representing a future cyclical tailwind.
• Price increases initiated: TXN has started executing price increases, with some impact expected in Q3 and continuing into Q4. For Q3, the "vast majority" of growth is unit-driven with pricing contributing an "almost insignificant" amount — consistent with MCHP's framing that September is when price increases take effect.
• Industrial still below 2022 peak: Despite strong Q2 growth, industrial is still "5 or 6 points lower than that 2022 peak" — suggesting meaningful runway remains for MCHP's industrial recovery as well.
• Data center strength continuing: "We do continue to see strong demand in the data center market and I don't expect that to change in the foreseeable future." 800V architecture transition seen as a structural tailwind for both Analog and Embedded — directly relevant to MCHP's data center power and connectivity products.

NXP Semiconductors (NXPI) — Q2 2026 Earnings Call, July 28, 2026

Relevance: NXPI is a direct peer in automotive microcontrollers and industrial processing. Its Q2 results and Q3 guidance are highly relevant to MCHP's automotive and industrial end market trajectory.

• Strong beat across all end markets: NXPI reported Q2 2026 revenue of $3.5B, up 19% YoY, beating guidance midpoint. All end markets and regions grew versus prior year. Industrial & IoT up 38% YoY; automotive up 12% YoY (17% adjusted for MEMS sensor sale).
• Operational metrics all strengthening: Book-to-bill above 1 and higher than prior quarter; customer escalations doubled since last quarter; late orders in the quarter continue to climb; backlog growing for Q+1, Q+2, Q+3 (18-month signal). Visibility has improved into Q4 2026 and Q1 2027.
• Above-seasonal Q3 guidance: NXPI guided Q3 2026 revenue of $3.75B (±$100M), up 21% YoY (adjusted) and 7% sequentially. All regions and end markets expected up sequentially. Industrial & IoT expected up high-30s% YoY; automotive up low-double-digit% YoY.
• No restocking observed in automotive: "We actually see no restocking" in automotive; Tier 1 inventories remain "quite low" with customers still placing late orders. This mirrors MCHP's commentary that automotive end-customer restocking has not yet begun — a future tailwind.
• Lead times extending broadly: "A big chunk of our portfolio has extended [lead times] versus last quarter" (greater than 16 weeks). Customers are placing orders further in advance. This is consistent with MCHP's guidance for broad-based lead time expansion over the next two quarters.
• Data center franchise growing rapidly: NXPI's data center revenue expected to exceed $500M in 2026 (from ~$200M in 2025), driven by control plane of AI infrastructure. Physical AI design win funnel grew from >$1B to >$1.5B in one quarter across 200+ unique customers.
• Confidence in 2027 unchanged: "No change" to previously stated double-digit growth outlook for 2027 and 60% gross margin target. "Our confidence in our long-term growth rate has only increased."

ON Semiconductor (ON) — Q2 2026 Earnings Call, August 3, 2026

Relevance: ON is a key peer in automotive power semiconductors and industrial. Its commentary on automotive recovery, silicon carbide, and industrial demand is relevant to MCHP's automotive and industrial end markets. ON also competes in 10BASE-T1S Ethernet, a key MCHP growth product.

• Recovery confirmed across all end markets: ON described "all signs of a healthy recovery across the board" with book-to-bill "significantly above one for several quarters and continued to strengthen." Lead times stretched from ~27 weeks to ~32 weeks on average. Customers ordering out into 2027 and 2028 to lock up supply.
• Q3 2026 guidance above seasonal: ON guided Q3 2026 revenue of $1.65B–$1.75B (midpoint $1.7B), with non-GAAP gross margin of 40–42% and non-GAAP EPS of $0.81–$0.93. Described as a "significant step up function increase" as utilization benefits materialize.
• Automotive: shipping to demand, not yet restocking: "We're not seeing an inventory build. We are seeing really consumption to demand." Distribution inventory declined to 10.1 weeks from 10.8 in Q1. Mass market revenue up 20% sequentially. This mirrors MCHP's characterization of customers ordering to run rate rather than building safety stock.
• Industrial AI halo effect: Industrial revenue of $423M, up 1% sequentially and 4% YoY, driven by energy, infrastructure, medical, and factory automation. ESS revenue expected to grow ~40% YoY in 2026. Industrial expected to be "relatively flat" in Q3 — a slight caution for MCHP's industrial outlook.
• Price increases: second round underway: ON implementing a "second round of price increases" to offset rising input costs, with benefit expected "over the next several quarters." Suppliers indicating input costs "not going down" into 2027. Consistent with MCHP's September price increase timeline.
• AI data center more than doubling in 2026: ON now expects AI data center revenue to "more than double in 2026," driven by stronger demand and broader customer wins. Silicon carbide revenue in AI data center expected to grow ~60% YoY. Prioritizing AI data center shipments over automotive and industrial due to supply constraints.
• Gross margin expansion trajectory: Utilization increased to 83% from 77% in Q2; expected flat to up in Q3. "25 to 30 basis points of gross margin improvement for every point of utilization" — same framework MCHP uses for its own margin recovery path.

ON Semiconductor (ON) — BofA Global Technology Conference, June 3, 2026

Relevance: This conference call (post-MCHP's May 7 earnings) provided early-cycle commentary on the demand inflection and automotive/industrial recovery trajectory relevant to MCHP's June quarter.

• Q1 2026 described as the inflection point: Management called Q1 2026 "an inflection right point" with multiple signals: backlog layering in further out in time, lead times beginning to extend, and industrial PMI clicking above 50. "The bottom is there, but we're not off to the races as yet, which is fine because there's still headroom."
• Automotive: shipping to demand, not yet a cyclical recovery: "Automotive just going from undershipping to shipping to demand looks like up, but it's not a recovery yet." Content growth driven by EVs ("every EV that we ramp is more content than a non-EV") and 10BASE-T1S Ethernet ramping in H2 2026.
• Second half better than first half: "We again call the second half better than the first half" due to program ramps initiated in Q1 continuing throughout the year. AI data center "did 2x better than what we expected walking into the quarter." Q3 and Q4 backlog already better than same point in prior years.
• Price increases effective April 1: "We raised pricing effective April 1. That will start to really have an impact on the P&L in the second half." Gross margin expansion expected through remainder of 2026 and over a multi-year period.

Lattice Semiconductor (LSCC) — Q2 2026 Earnings Call, August 4, 2026

Relevance: LSCC is a direct FPGA peer and competes in the mid-tier/low-power FPGA market where MCHP is also active (PolarFire 2). LSCC's commentary on FPGA demand, industrial/embedded recovery, and supply constraints is highly relevant.

• Exceptional Q2 results: LSCC delivered "exceptional financial results" reflecting a "healthy market environment, compelling catalysts, and strong execution." Industrial & embedded revenue up 17% sequentially and 36% YoY. FPGA business continues its "accelerated growth trend."
• Unprecedented visibility: "The visibility is increasing daily. It's really unprecedented. We've got visibility all the way to the end of 2027. 2027 is pretty much booked." Bookings extending well into 2027; accelerated bookings and backlog extending well into 2027.
• Q3 2026 guidance: strong FPGA growth: FPGA business revenue guided to $220M at midpoint for Q3, representing ~65% YoY growth. Total Lattice revenue (including Ami acquisition) guided to $245M–$265M. Non-GAAP EPS midpoint of $0.56, reflecting ~100% YoY growth.
• Supply constraints on assembly: "On the assembly side, there are constraints across the industry right now." LSCC putting capacity agreements in place; expects supply/demand in line by September and in good shape for Q4 and 2027. This is consistent with MCHP's commentary on broadening supply constraints.
• FPGA attach rates growing: "The attach rate continues to grow. The CapEx continues to grow. New applications continue to grow. The ASP of some of the new products continue to grow because we're coming in now with further and more complex security requirements." Directly positive for MCHP's PolarFire 2 FPGA launch.
• Industrial PMI positive globally: "The PMI now is at levels that are very positive levels worldwide" despite a "bit of a temporary slowdown in China." New segments (robotics, humanoids, autonomous vehicles, medical, aerospace & defense) contributing to growth.
• Cost pass-through pricing: "Costs are increasing across the industry" including supply chain and expedite fees. LSCC absorbing some and passing some — "it's going to be a mixture." Consistent with industry-wide pricing dynamic MCHP is navigating.

Analog Devices (ADI) — BofA Global Technology Conference, June 2, 2026

Relevance: ADI is a broadline analog peer with significant industrial and automotive exposure. Its June 2 conference commentary (post-MCHP's May 7 earnings) provides early read-through on the demand environment for MCHP's June quarter.

• Mass market recovery confirmed: "We have now seen over multiple quarters, very significant growth in the mass market part of the business, which for us is one of those classic signs of the up cycle." This is a key leading indicator for MCHP's broad-based recovery thesis.
• Industrial channel lean: ADI running industrial channel at "6 to 7 weeks, leaner than historical levels." 60% of industrial business still ~20% below prior peaks — "there's still certainly room to run across the broader part of the industrial." Directly positive for MCHP's industrial recovery runway.
• Automotive acceleration earlier than expected: "We saw some acceleration earlier than we expected" in automotive, with "aggressive acceleration in orders in the back half of the last month" and record levels in some jurisdictions. Growth driven by content and share, not SAAR units.
• Orders extending further out: "We're getting more orders out a quarter beyond where we would historically have them as things appear to be getting tighter broadly across Analog." ADI just posted a record quarter and guided another record quarter.
• Data center halo effect: "This halo effect from that infrastructure build [is] impacting the other parts and the other end markets that we serve" — including industrial companies building electrical and power infrastructure. Data center now 3/4 of ADI's communications business.
• First broad price increase in 2026: ADI's "first big price increase in '26" was to recover absorbed costs, not due to shortages. "We've been absorbing costs on your behalf for a while." Consistent with MCHP's cost pass-through framing.

Monolithic Power Systems (MPWR) — Q2 2026 Earnings Call, July 30, 2026

Relevance: MPWR is a key peer in power management for data centers and automotive. Its commentary on enterprise data center demand, automotive ramp, and supply dynamics is relevant to MCHP's data center and automotive end markets.

• Enterprise data center surging: Enterprise data grew 45% sequentially in Q2, gaining ~$120M in one quarter. MPWR raised its full-year enterprise data growth floor from 85% to 130% YoY. Book-to-bill "well above one" with visibility extending more than a quarter. Data center exposure approaching ~50% of total revenue.
• Automotive ramp in H2 2026: Automotive expected to ramp in H2 after a flat H1, with mid-teens YoY growth for the full year. Shipped products for over 1,500 new sockets YTD. Ramp is "very broadly based" and "not isolated to 1 or 2 customers."
• Channel inventory very low: "Our channel inventory is one indicator and that remains very low." MPWR does not build into customers' inventory, prioritizing long-term relationships — consistent with MCHP's philosophy.
• Q3 2026 story similar to Q2: Enterprise data and communications expected to lead Q3; industrials "could grow a little bit with the market"; consumer and notebook storage remain cautious. Gross margin guidance incrementally expanded.
• 800V data center products sampling: MPWR began sampling high-voltage AC-to-DC products for 800V data center architectures, expanding beyond current AI and server core power solutions. Revenue timing uncertain but consistent with MCHP's solid-state transformer and power management opportunity.
• Pricing: no gouging, consistent approach: "NPS never gouges price when the supply chain is tight." Price increases limited to three areas: offsetting input cost increases, customer expedites, and specific non-China supply chains. Growth is "all product," not price. Directly mirrors MCHP's pricing philosophy.

Skyworks Solutions (SWKS) — Q3 FY2026 Earnings Call, July 28, 2026

Relevance: SWKS is a more limited read-through for MCHP given its heavy mobile/RF focus, but its broad markets commentary (data center, automotive, industrial) and supply chain observations are relevant. SWKS is also navigating the same input cost and pricing dynamics.

• Broad markets growing: Broad markets revenue of ~$403M, up 8% YoY, led by "strong double-digit growth in data center and automotive." Three growth engines (Wi-Fi, data center, automotive) collectively grew 15% YoY and are "supply constrained."
• Demand healthy, channel lean: "Demand is healthy and channel inventories are lean, and the long-term setup is compelling." Book-to-bill above 1. No change to go-forward consensus rate expected.
• AI data center fastest-growing business: AI data center tracking ahead of the 50% annual growth outlined last quarter. Demand driven by high-speed connectivity (800G/1.6T platforms) and power (400V/800V HVDC architectures).
• Input cost headwinds persisting: "Input costs remain a headwind in the quarter" and expected to "persist." Selective price increases underway, "mostly on the broad market side" for "long life products that have long tails." Some increases not yet effective. Consistent with MCHP's September price increase timeline.
• Q4 FY2026 (Sep quarter) guidance: Revenue guided $1.01B–$1.06B (midpoint $1.035B), with broad markets expected to grow ~5% YoY. Gross margin guided 44–45%, reflecting mobile mix shift and input cost pressures. Limited direct read-through for MCHP given mobile dominance.

Summary Read-Through: The peer commentary mosaic is overwhelmingly positive for MCHP's Q1 FY2027 print. TXN, NXPI, ON, LSCC, and ADI all confirm: (1) broad-based industrial and automotive recovery with customers not yet restocking; (2) lead times extending across the industry; (3) book-to-bill well above 1 with visibility extending into 2027; (4) data center demand accelerating; and (5) industry-wide price increases being implemented to offset input cost inflation. The only mild caution comes from ON's industrial guidance of "relatively flat" in Q3, but this is offset by TXN's 30% industrial growth and NXPI's high-30s% industrial growth. MCHP's above-seasonal June quarter guidance appears well-supported by the peer data points.