STMicroelectronics Forecasts $1B Data Centre Revenue, Eyes Crolles Fab Expansion
STM•STMicroelectronics raised its 2026 data centre revenue forecast to $1 billion from over $500 million, propelling shares up more than 8% in Paris. CEO Jean-Marc Chery will decide on expansion of the Crolles fab by end-2026 to meet surging near-package optics demand.
1. Data Centre Revenue Forecast Upgrade
STMicroelectronics raised its data centre business revenue projection for 2026 to $1 billion, up from a prior forecast exceeding $500 million, driven by rapid AI infrastructure investments and manufacturing capacity expansion.
2. Market Reaction and YTD Performance
Shares climbed over 8% in Paris trading following the forecast upgrade, adding to a 164% year-to-date gain as investors price in strong growth from AI-related data centre demand.
3. Crolles Fab Expansion Decision
CEO Jean-Marc Chery indicated a decision on further expanding the Crolles chipmaking facility will be made by end-2026 to accommodate accelerating demand for near-package optics in AI data centres.
4. Future Growth Drivers
Analyst projections anticipate optical products will account for two-thirds of data centre segment growth in 2027, with power semiconductors making up the remainder, underpinning an overall projected 20.5% company-wide revenue increase.
