STMicroelectronics announced an upgraded revenue outlook for its data centre business, targeting approximately $1 billion in 2026, up from a prior guidance of “above $500 million”.
The company cited robust demand from AI infrastructure build‑out and increased manufacturing capacity as the primary drivers of this uplift.
Shares rose more than 8 % in Paris trading following the announcement, and the stock is up over 164 % year‑to‑date as of the Monday close.
STMicro previously disclosed that it would supply semiconductors to Amazon Web Services for connectivity and power‑management applications.
Chief Executive Officer Jean‑Marc Chery is steering the firm away from its traditional consumer‑electronics and automotive base toward faster‑growing markets, with data centres a key target.
The data centre business is focused on supporting hardware that keeps AI systems running (connectivity, power management) rather than on graphics processors used for AI model training.
The company stated that, assuming current dynamics continue, data centre revenues could double in 2027, with a goal of “well above $1 billion” for that year.
Jefferies analysts said the announcement reflects confidence in the execution of the capacity ramp, expecting optical products to drive about two‑thirds of growth and power chips the remaining one‑third.
Data centre operations are projected to contribute roughly 7 % to STM’s overall growth in 2027, within an expected total growth of 20.5 % for the company.
The upgraded outlook also reflects progress in scaling up factory output.
