STMicroelectronics has raised its 2026 and 2027 revenue targets for its data center business, citing continued strong demand tied to AI infrastructure and progress in expanding capacity.
The Franco-Italian chipmaker's shares surged as much as 10% to €65.21, their highest since September 2000. The stock was up 8.4% in early trading, among the top gainers on Europe's STOXX 600 index.
STMicro now expects data center revenue of about $1 billion in 2026, up from a 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," it said in a statement.
Jefferies analysts estimated that data centers alone would contribute around 7% growth to 2027 revenue. STMicro's data center exposure is focused less on AI training graphics processors and more on the surrounding infrastructure needed to power and manage them.
The company said the higher revenue target also reflected progress in factory ramping capacity. J.P. Morgan analysts noted that the new guidance likely results in estimates rising in both years, with a larger impact in 2027.