STMicroelectronics raises data centre revenue target on AI demand
STMicroelectronics Updates Data Centre Revenue Forecast Amid AI Boom
June 2 (Reuters) - 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.
Revised Revenue Projections
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.
Potential for Further Growth
"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.
Focus on AI Infrastructure
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.
Factory Capacity Expansion
It said the higher revenue target also reflected progress in factory ramping capacity.
Reporting and Editorial Credits
(Reporting by Nathan Vifflin in Gdansk, editing by Milla Nissi-Prussak)
