🇺🇸 English, 25 October 2026, AI data center
STMicroelectronics Raises Data Center Target to Over $1 Billion for 2026
STMicroelectronics expects data center revenue to grow 16.2% year over year in Q3.
The company raised its data center target to more than $1 billion for 2026 and well above $2 billion for 2027, with backlog already covering 100% of this year’s data center contracts.
Optical connectivity is the main driver, with ST expecting Communication Equipment and Computer Peripherals revenue to grow close to 60% year over year in Q3 and around 90% in Q4.
Management targets gross margin above 40% only after the manufacturing operations restructuring program finishes, expected by the end of 2027.