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STMicro Surges on Upgraded AI Infrastructure Targets
4 Jun
Summary
- STMicroelectronics raised 2026 and 2027 data centre revenue targets significantly.
- New 2026 forecast is about $1 billion, double previous expectations.
- Company's AI focus is on infrastructure, not just AI model training chips.
STMicroelectronics has elevated its financial projections for its data centre segment, with new targets set for 2026 and 2027. The company now anticipates approximately $1 billion in revenue from data centres by 2026, a substantial increase from its prior forecast of "nicely above" $500 million. Furthermore, STMicro indicated that revenues could potentially double in 2027, surpassing its earlier projection of "well above $1 billion" for that year.
This upward revision is attributed to sustained robust demand associated with AI infrastructure development and the company's progress in scaling up manufacturing capacity. STMicroelectronics' engagement in the data centre market primarily centers on the essential infrastructure required to support and manage AI operations, rather than the graphics processors used in AI model training.
Analysts have reacted positively to the news, with Jefferies estimating that data centres could contribute around 7% to STMicro's overall revenue growth by 2027. J.P. Morgan noted that the updated guidance on AI is likely to result in upward revisions of financial estimates for both 2026 and 2027, with a potentially greater impact in the latter year.
