Microchip Technology (MCHP) stock surged 8.78% in overnight trading, extending a powerful rally after the semiconductor company reported fiscal first-quarter results that handily beat Wall Street estimates and issued above-consensus guidance for the current quarter.

The company posted adjusted earnings of $0.76 per share, exceeding the analyst consensus of $0.69 by 10.14% and marking a 181% jump from the $0.27 earned a year earlier. Revenue climbed 38% year-over-year to $1.485 billion, also topping the $1.458 billion estimate. For the second quarter, Microchip guided for net sales between $1.589 billion and $1.618 billion and adjusted EPS of $0.91 to $0.95, well ahead of the $1.556 billion and $0.80 analysts had projected.

CEO Steve Sanghi cited improving demand, continued inventory normalization and stronger factory utilization as key drivers. The company also reported a book-to-bill ratio well above 1, a double in PCIe Gen6 connectivity design wins, and a quarterly dividend of 45.5 cents per share. The combination of a comprehensive earnings beat and an optimistic outlook fueled the sharp post-market and overnight rally in the stock.