STMicroelectronics raises data centre revenue target on AI demand

The STMicroelectronics logo appears in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration

02 Jun 2026 02:10PM

(Updated: 02 Jun 2026 02:17PM)

June 2 : STMicroelectronics raised the revenue target for its data centre business on Tuesday, citing continued strong demand tied to AI infrastructure and progress in expanding capacity.The Franco-Italian chipmaker 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," STMicro said in a statement. It had previously targeted revenue "well above $1 billion" for next year.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.It said the higher revenue target also reflected progress in factory ramping capacity.

Source: Reuters