Microchip Technology Inc. /zigman2/quotes/208326291/composite MCHP -2.56% shares rallied in the extended session Tuesday after the chip maker hiked its outlook given improvements to its supply chain. Microchip Technology shares surged 7.4% after hours, following a 1.2% rise to close the regular session at $96.84. The company said it expects adjusted first-quarter earnings of $1.35 to $1.53 a share on revenue of $1.25 billion to $1.33 billion. Analysts surveyed by FactSet are expecting earnings of $1.34 a share on revenue of $1.24 billion. Microchip Technology had previously forecast $1.25 to $1.45 a share on revenue of $1.19 billion to $1.3 billion. "With two months of the quarter behind us, our business is performing better than we expected during our May 7, 2020 earnings conference call," said Chief Executive Steve Sanghi in a statement. "COVID-19 related supply chain disruptions which were primarily in Malaysia and Philippines have eased. We have begun to make up for lost production and expect to continue to gain ground through the end of this quarter."