STMicroelectronics Price Target Raised to EUR 75 as Data Center Revenue Forecast Hits $1B
STM•Deutsche Bank raised its Buy price target on STMicroelectronics to EUR 75 from EUR 52 after boosting its 2026 data center revenue forecast to $1 billion due to AI infrastructure demand. Company posted 41% year-over-year Q1 growth in communication equipment and is weighing Crolles facility expansion for silicon photonics.
1. Analyst Upgrade and Forecast Revision
Deutsche Bank kept its Buy rating on STMicroelectronics and increased its price target from EUR 52 to EUR 75, citing accelerating AI infrastructure demand. The bank also raised its 2026 data center revenue projection from just over $500 million to $1 billion.
2. Q1 Performance Highlights
STMicroelectronics delivered a 41% year-over-year increase in Q1 revenue from communication equipment and peripherals, fueled by partnerships with AWS and work on NVIDIA power systems. This performance underscores the company’s positioning in the AI data center market.
3. Crolles Facility Expansion Consideration
The company is evaluating an expansion of its Crolles semiconductor facility in France to support rising silicon photonics demand for AI data centers. A final decision on the expansion is expected by year-end 2026.
4. Market Reaction and Investor Interest
Following these developments, STMicroelectronics shares jumped 7.29% to $75.90, pushing its market capitalization to about $67.46 billion. Trading volume exceeded 11.72 million shares, highlighting robust investor interest.
