STMicro lifts data centre revenue goals on AI demand, shares hit 25-year high

By Nathan Vifflin

June 2 (Reuters) – STMicroelectronics raised the 2026 and 2027 revenue targets for its data centre business on Tuesday, citing continued strong demand tied to AI infrastructure and progress in expanding capacity.

The Franco-Italian chipmaker’s shares rose as much as 10% to €65.21 per share, their highest since September 2000. They were up 8.4% as of 0738 GMT, among top gainers on Europe’s benchmark STOXX 600 index.

STMicro now expects data centre revenue of about $1 billion in 2026, compared with its previous forecast for revenue “nicely above” $500 million.

“Assuming the current dynamic continues and with the current engagements we have, revenues could double in 2027,” it said in a statement, having previously targeted revenue “well above $1 billion” for next year.

Jefferies analysts estimated that data centres alone would contribute around 7% growth to 2027 revenue, out of their overall 20.5% growth forecast.

STMicro’s data centre exposure is focused less on the graphics processors that train AI models and more on the surrounding infrastructure needed to power and manage them.

The company said the higher revenue target also reflected progress in factory ramping capacity.

“The new guidance on AI likely results in estimates rising in both years though we would think that estimates will rise more in 2027 than in 2026,” J.P. Morgan analysts said in a note.

(Reporting by Nathan Vifflin in Gdansk, editing by Milla Nissi-Prussak)