[iHub News]

STMicro Raises Data Centre Revenue Forecast to $1 Billion as AI Demand Accelerates (STM)

June 2, 2026 6:24 AM
IH Market News

STMicroelectronics (NYSE:STM) increased its revenue expectations for its data centre business on Tuesday, citing strong momentum from artificial intelligence infrastructure investment and ongoing expansion of manufacturing capacity.

The Franco-Italian semiconductor manufacturer, which counts Tesla and Apple among its customers, now expects its data centre operations to generate approximately $1 billion in revenue during 2026. The updated target marks a significant increase from its previous forecast of more than $500 million.

Investors welcomed the announcement, sending shares more than 8% higher in Paris trading. The stock had already gained more than 164% since the beginning of the year through Monday’s close.

AI Infrastructure Expansion Drives Growth

Management said demand trends remain highly supportive, reflecting continued investment in the infrastructure required to support AI applications and services.

“Assuming the current dynamic continues and with the current engagements we have, revenues could double in 2027,” STMicro said in a statement.

The company had previously projected revenue would be “well above $1 billion” in 2027, but the latest comments suggest further upside potential if current market conditions persist.

Analysts Highlight Confidence in Capacity Expansion

Jefferies analysts said the revised outlook “reflects confidence in the execution of this capacity ramp.”

Looking ahead to 2027, the brokerage expects optical products to account for roughly two-thirds of the anticipated growth in the data centre segment, while power semiconductor products are projected to contribute the remaining one-third.

“Data centers alone will, therefore, contribute around 7% growth to STM in 2027, out of our 20.5% growth expectation,” they added.

Strategic Shift Toward High-Growth Markets

STMicro has been increasing its focus on data centres and other fast-growing technology sectors under the leadership of Chief Executive Jean-Marc Chery.

Earlier this year, the company announced a supply agreement with Amazon Web Services (AWS), covering semiconductors used in connectivity and power-management applications. The strategy reflects a broader effort to diversify beyond traditional end markets such as automotive and consumer electronics.

Rather than focusing on graphics processing units used for AI model training, STMicro’s data centre business is concentrated on the supporting hardware and semiconductor technologies that enable those systems to operate efficiently.

The company also said the improved outlook reflects progress in expanding production capacity, allowing it to meet growing customer demand.

STMicroelectronics stock price

Original: STMicro Raises Data Centre Revenue Forecast to $1 Billion as AI Demand Accelerates (STM)

[iHub News]

STMicroelectronics tops Q1 forecasts, targets $1 billion in AI revenue by 2027

April 23, 2026 6:45 AM
IH Market News

STMicroelectronics (NYSE:STM) reported first-quarter results above expectations on Thursday, supported by solid demand across personal electronics, computing devices, peripherals, and the ongoing expansion of AI infrastructure.

The semiconductor group posted revenue of $3.10 billion, marking a 23% increase year-on-year and exceeding both its own guidance of about $3.04 billion and analyst forecasts of $3.06 billion.

Net income came in at $37 million, compared with $56 million in the same period last year. Gross profit rose to $1.05 billion from $841 million, resulting in a gross margin of 33.8%.

Operating income reached $171 million, slightly ahead of analyst expectations of $165.8 million.

“In Q1, despite the macroeconomic uncertainty, we saw improving demand with strong booking and normalized inventory in distribution,” CEO Jean-Marc Chery said in a statement.

Looking forward, the company expects second-quarter revenue of around $3.45 billion, up from $2.77 billion a year earlier, with gross margin seen increasing to 34.8% from 33.5%.

Chery added that STMicroelectronics is well positioned to benefit from rising demand tied to artificial intelligence, forecasting data-center AI revenues to exceed $500 million this year and to go beyond $1 billion by 2027.

“ST is now strategically positioned to capture upside from new AI driven programs, leveraging specialized technologies to enable the evolving AI infrastructure,” he said.

STMicroelectronics stock price

Original: STMicroelectronics tops Q1 forecasts, targets $1 billion in AI revenue by 2027

[mick]

cash flow

[mick]

financial struggles

[mick]

STM
STMicroelectronics NV
25.93
-0.03 (-0.12%)
Volume: 4,404,993
Day Range: 25.795 - 26.19
Last Trade Time: 3:35:38 PM EDT

[mick]

STMicroelectronics Announces Status of Common Share Repurchase Program
08/18/2025 08:00:00 AM

[Shareing is winning]

This Company supplies all the chipsets and other signal parts for extremely fast internet service this it a company that provides most of the parts for his antenna's! Elon Musks Starlink, most of the he plans on starting a AMAZING NEW INTERNET PROVIDER THAT WILL CONNECT THE WORLD AND CELL PHONES. on starting December 31st this year. Get in before the IPO! VERY VERY BULLISH ON THIS ONE!

[Mean Weimaraner]

$STM the forgotten chip stock. February $45 call now 1.5 … 200% with 1 week left

[Mean Weimaraner]

$STM 100% on February $45 calls today

[Mean Weimaraner]

$STM every dog has its day

[IL Padrino]

All I can say is I've owned it since $5 and change and it's been very steady and reliable. It's at an all time high now and I don't know how much room it has to grow from here.

That being said, the company seems to make all the right moves to stay relevant and provide top quality product to its customers. They have a great balance sheet and currently remain attractive to investors.

Do your own DD to see if it works for you.

[invest007]

Anyone have any insight or opinions about this stock?

[JohnCM]

Fantastic. I like ON too.

[IL Padrino]

This is such a great stock. Got some in my IRA with an initial price of $5 and change. One of the best investments I ever made.

[JohnCM]

[JohnCM]

Looking good!

[JohnCM]

STMicroelectronics Announces Status of Common Share Repurchase Program

BY GlobeNewswire
08/16/2021

Disclosure of Transactions in Own Shares – Period from Aug 09, 2021 to Aug 13, 2021

AMSTERDAM – August 16, 2021 -- STMicroelectronics N.V. ( STM ) , a global semiconductor leader serving customers across the spectrum of electronics applications, announces full details of its common share repurchase program (the “Program”) disclosed via a press release dated July 1, 2021. The Program was approved by a shareholder resolution dated May 27, 2021 and by the supervisory board.

STMicroelectronics N.V. ( STM ) (registered with the trade register under number 33194537) (LEI: 213800Z8NOHIKRI42W10) announces the repurchase (by a broker acting for the Company) on the regulated market of Euronext Paris, in the period between August 09, 2021 to August 13, 2021 (the “Period”), of 198,835 ordinary shares (equal to 0.02% of its issued share capital) at the weighted average purchase price per share of EUR 36.4437 and for an overall price of EUR 7,246,276.76.

[JohnCM]

My number #4 semi stock.

[Quantum AI]

Following the share buybacks, the Company holds in total 6,498,141 treasury shares, which represents approximately 0.7% of the Company’s issued share capital.

[TFMG]

$STM | #STMicroElectronics Breakout Trade


Potential entry above $31.50
Fibonacci target $33.50
Stop loss $30.50

[IL Padrino]

This is a great stock, albeit a bit boring. Hopefully we get more followers soon.

[Paiidnfull38]

Here we go again!

[IL Padrino]

Actually, these lower prices are welcome during the buyback. $750M gets a lot more shares now than it would at $20. This is a solid long term hold IMO

[ap17]

Hope their R & D comes up with the big one.

[ap17]

Held nicely today despite supplier news.

[ap17]

YUP, I bought it at 10 and 11, sold all @ 23.5. Still think its a good play even though its around 15 now.

[Scotttrader80]

Havent checked back on this one since earlier this year, seems like they've been beaten down quite a bit. Self proclaimed "wall street legend" Paul Mampilly was hyping this one all over the internet. I think I owned them at $8.00 something.

[IL Padrino]

Buyback program!

https://seekingalpha.com/news/3404972-stmicroelectronics-announces-launch-share-buy-back-program?dr=1#email_link

[ap17]

agreed! The entire semi sector was down. No worries here.

[IL Padrino]

We've seen a large pullback from $23 but I still like the potential long term. The Y/Y growth is undeniable and I think we'll see $15+ in the near future. Still holding my $5's and letting this stew in a Roth as the divis collect more shares for me.
All good here.

[pete7]

Should see this around 8’s next week

[Fibanotch]

Yes, like 2 c this bounce off, 14!

[ap17]

Was trading around 22-23 for the longest, now a new range in the $19 area.

[ap17]

They need an apple contract to go to the next level.

[ap17]

green today.

[ap17]

tic toc

[MEAD II]

That may be true, however the stock has tripled over the last 3 years and is a decent long-term play.

[Leezee Life Strategies]

$AAPL up on earnings. $STM bullish.

[realdeal/or/not]

No he doesn't because his future lies far in the north!

[indgojim3]

this stock never ends going south

[vegasraider]

We are entering a long term buy signal according to the chart i'm looking at. it's very close. need to end the day on a good note.

[pete7]

With these revenue this should be moving good whats going on

[hggr9]

wow this site has gone dormant since the market has gone radical, however net revenues up 22% 2.2 billion net income 239 million over 131 million last years 22 dollars a share paying 24 cents dividend I have to add there will come a day that this stock will be 200 a shaimo

[hggr9]

sorry hunt and peck big fingers, thats what I get for not preview

[hggr9]

numbers very good dividend increase to .24, good reaqson to nhold cant figure why down in futures could it be thye increase in dividend

[hggr9]

Question is will it hold 25 this time I think it will

[broff96734]

25! Nice....what's the word on the street? Or are we just part of the stock market recovery?

[ap17]

I have yet to see any relationship what-so-ever with ICO's and STM.

[Scotttrader80]

Watch for lows, especially after the Dows 620 point sell off today. This crypto uncertainty is wrecking havoc across the board. Are STM's chips in any upcoming ICO's?

[IL Padrino]

STMicro Results Soothe Investors: Barclays -- Market TalkFont size: A | A | A
7:45 AM ET 1/26/18 | Dow Jones
1245 GMT - STMicroelectronics's positive fourth-quarter results have reassured investors, who were concerned about the effects of a weaker dollar and a potential slowdown in demand from Apple, a key customer, Barclays says. The U.K. bank says the chip maker will likely post strong sales in the second half of 2018, largely helped by new Apple deals, which will more than offset foreign exchange market pressures on its margin. Although Barclays says investors may not regain confidence overnight, it expects momentum to build over coming quarters. Barclays raises STMicro's target price to EUR24. Shares trade 0.1% lower at EUR18.91. ([e-mail])

> Dow Jones Newswires

January 26, 2018 07:45 ET (12:45 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.