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.
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.
(Reporting by Nathan Vifflin in Gdansk, editing by Milla Nissi-Prussak)
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