Alchip Technologies on Tuesday reported second-quarter 2026 earnings that surpassed market forecasts, driven by rising demand for AI-related semiconductor solutions.
The company posted adjusted earnings per share of $0.45, topping the $0.41 consensus estimate compiled by Refinitiv, according to an earnings call transcript. Revenue for the quarter reached $185 million, up 12% year-over-year, reflecting strong contributions from AI chip design and manufacturing services.
Chief Executive Officer Johnny Lee attributed the outperformance to accelerated AI infrastructure deployments by hyperscale cloud providers and enterprise clients. "The AI ramp has been faster than anticipated, with multiple design wins translating into tangible revenue growth," Lee said during the call.
Gross margin expanded to 44.2%, compared with 41.8% in the same period last year, as higher-value AI chip orders improved pricing power. Operating expenses rose 8% sequentially, primarily due to investments in R&D and capacity expansion to meet surging demand.
For the third quarter, Alchip guided revenue to $190 million to $200 million, with adjusted EPS expected between $0.47 and $0.52. Analysts polled by Refinitiv had forecast revenue of $188 million and EPS of $0.48.
Shares of Alchip were indicated higher in pre-market trading following the results, reflecting investor confidence in the company's near-term growth trajectory amid sustained AI-driven demand.
