STMicroelectronics (STMPA) raises 2026 data centre revenue forecast
STMicroelectronics revised its 2026 revenue forecast for data centres upwards, propelling the STMPA share price by 8.4% on 2 June 2026. The stock is trading at €64.29 on Euronext Paris, following a close at €59.30 the previous day.
The semiconductor manufacturer now anticipates approximately $1 billion in revenue for this segment in 2026, a significant increase from its earlier target of "nicely above $500 million". This revision is attributed to strong demand for artificial intelligence infrastructure and progress made in expanding production capacity. In response, Jefferies reiterated its "Buy" recommendation on the stock, accompanied by a €74.00 price target.
This performance is part of a positive trend for STMicroelectronics, whose shares had already been stimulated by AI and analyst optimism last week. The current price of €64.29 marks a clear recovery, after the stock gained 2.7% on 28 May following changes within its Supervisory Board.
Why AI Demand Is Redefining STMicroelectronics' Outlook
STMicroelectronics is a semiconductor manufacturer, producing the tiny, essential electronic components that act as the brains of nearly all modern devices. Their chips are found in a multitude of products, from smartphones and cars to industrial equipment and data centre infrastructure, thereby powering technological innovation for a varied client base.
Today's movement is explained by a significant revision of its 2026 revenue forecasts for the data centre segment. The group now anticipates approximately $1 billion in revenue from this market for 2026, a clear progression from its initial target of "well over $500 million". This acceleration is directly linked to the strong demand for artificial intelligence infrastructure and advancements made in expanding production capacity, factors which have also led Jefferies to reiterate its "buy" recommendation.
This news has propelled STMPA shares, which are up 8.4% this 2 June 2026, and are currently trading at €64.29 on Euronext Paris, after having closed the previous day at €59.30.
Imagine a conductor who, after rehearsing a score, realises that public enthusiasm for a new piece is so great that they can fill a hall twice as large as anticipated. This re-evaluation of expectations, based on concrete demand and increased capacity, is what has happened for STMicroelectronics, signalling growth potential far exceeding initial estimates.
STMicroelectronics
STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs), and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; radio frequency (RF) and electrically erasable programmable read-only memories; and RF, digital, and mixed-signal ASICs. It also provides assembly and other services. The company sells its products through distributors and retailers, as well as through sales representatives. It serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.