STMicroelectronics Projects $1B Data-Center Revenue by 2027, UBS Sees 36% Upside
STM•STMicroelectronics forecasts data-center revenues exceeding $500 million in 2026 and surpassing $1 billion in 2027, driven by AI and cloud infrastructure demand. UBS analysts assign a $100 price target implying roughly 36% upside after the stock rallied nearly 150% over the past three months.
1. Data-Center Revenue Growth
STMicroelectronics now expects data-center sales to exceed $500 million in 2026 and top $1 billion in 2027, reflecting strong adoption of its AI and cloud infrastructure chips.
2. Stock Rally and Bookings
The share price has surged nearly 150% over the past three months as order momentum strengthened and distribution inventories returned to normal levels.
3. UBS Price Target
UBS analysts set a $100 price target, implying approximately 36% upside based on forecasts of double-digit revenue growth and improved margins in 2026.
4. Capacity Expansion
The company is scaling production capacity to meet rising AI-related chip demand and is targeting operational efficiencies to bolster margins next year.
