STMicroelectronics doubles data centre revenue target to $1bn for 2026
STMicroelectronics has revised upwards its data centre revenue expectations for 2026 to approximately $1 billion, nearly doubling a prior guidance range described as "nicely above $500 million".
The Geneva-headquartered integrated device manufacturer attributed the upgrade to sustained AI infrastructure-driven demand and progress in ramping production capacity.
Looking further ahead, the company said revenues could reach around $2 billion in 2027 — superseding earlier guidance of "well above $1 billion" — contingent on current market dynamics and existing customer engagements continuing at their present trajectory.
The revised guidance in detail
ST did not name specific customers or products driving the data centre uplift, nor did it disclose capacity utilisation rates or the mix of silicon categories contributing to the revised figure. The company's data centre portfolio spans power management ICs, silicon carbide devices for power conversion, and microcontrollers, though the release made no breakdown by product family.
The announcement was accompanied by a lengthy forward-looking statements disclaimer, citing macro risks including tariff changes, geopolitical disruption, FX volatility, and supply-chain uncertainty — all of which the company acknowledged could cause actual results to diverge materially from current expectations.
Market context
ST operates in a semiconductor market that has bifurcated sharply since 2024: automotive and industrial end-markets softened considerably while data centre and AI-adjacent demand surged. The company is not alone in chasing the infrastructure spending wave. Rivals such as Infineon, ON Semiconductor, and Texas Instruments are all expanding their power-semiconductor presence in server and GPU rack applications, where the energy-density demands of AI accelerators are driving rapid growth in power delivery silicon.
The wider AI buildout is intensifying demand for specialised components well beyond GPUs themselves — power management, voltage regulation, and thermal management parts are increasingly a bottleneck in hyperscaler and co-location rack designs. ST's silicon carbide capabilities, originally developed for EV powertrains, are finding a second growth path in high-current data centre power supplies, a dynamic that has attracted investor attention across the sector.
Regulatory and ESG read-across
ST also reaffirmed its target of achieving carbon neutrality across scopes 1 and 2 — and a defined portion of scope 3 including logistics and business travel — and sourcing 100% renewable electricity by the end of 2027. As data centre customers themselves face tightening ESG disclosure obligations under the EU Corporate Sustainability Reporting Directive and the SEC's climate rules, supplier-level emissions data is becoming a procurement criterion rather than a nice-to-have. ST's integrated manufacturing model, with fabs in France, Italy, and Singapore, gives it a degree of supply-chain transparency that fabless rivals cannot easily match.
With the guidance upgrade confirmed and the forward calendar pointing to a 2027 test of the $2 billion ambition, investors will focus on ST's next quarterly earnings call for evidence of design wins at hyperscaler customers and any further capacity commitments.