STMicro Expects 80% of 2027 AI Data-Centre Revenue from Optics, Says CFO
STMicroelectronics Reveals AI Data-Centre Revenue Breakdown
By Nathan Vifflin
Revenue Projections for 2027
Sept 9 (Reuters) - About 80% 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.
Optics as the Main Driver
The remaining 20% 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 and Long-Term Outlook
"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.
Focus on Connectivity Chips
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.
(Reporting by Nathan Vifflin in Gdansk. Editing by Mark Potter)
