Sept 9 : About 80 per cent of the more than $2 billion in AI data-centre revenue STMicroelectronics is targeting for 2027 will come from chips used in fibre-optic data links, its finance chief said on Wednesday, providing the first breakdown of a target the company raised in July. The remaining 20 per cent will come from chips used for cooling systems and power conversion inside servers, Chief Financial Officer Lorenzo Grandi told Citi's Global TMT Conference in New York. "Short term will be mainly driven by the connectivity portion," Grandi said. He added that ST's presence in server power is currently limited and that the company does not expect meaningful revenue from the business before 2028.The comments show that, for now, the AI business of one of Europe's largest chipmakers is concentrated in connectivity chips, with the larger opportunity in server power expected to emerge only after 2028.
STMicro's 2027 AI revenue to be four-fifths optics, CFO says
Sept 9 : About 80 per cent of the more than $2 billion in AI data-centre revenue STMicroelectronics is targeting for 2027 will come from chips used in fibre-optic data links, its finance chief said on Wednesday, providing the first breakdown of a target the company raised in July. The remaining 20 per cent
TL;DRAI
STMicroelectronics projects $2 billion AI data-centre revenue for 2027: 80% from optical connectivity chips, 20% from power and cooling. The connectivity-heavy mix signals where AI infrastructure capex concentrates now; material server-power revenue shifts to post-2028.
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