STMicroelectronics has roughly doubled what it expects to make from data centres this year. The Franco-Italian chipmaker said on Monday it now anticipates around $1bn in data-centre revenue in 2026, up from the “nicely above $500m” it had guided to before, citing sustained demand for AI infrastructure and faster-than-expected progress ramping up capacity.
The revision runs into next year too. STMicro said data-centre revenue could double again in 2027, against earlier guidance of “well above $1bn”, which puts the 2027 figure on a steeper path than the company had previously been willing to forecast. The update is a guidance raise rather than a results announcement, the kind of mid-year recalibration that signals order books filling ahead of plan.
Behind the numbers is a named anchor customer. STMicro is leaning on a multi-year deal with Amazon Web Services, described as worth multiple billions of dollars, to build out its data-centre business across power conversion, silicon photonics and high-performance computing.
Those three areas are the unglamorous plumbing of an AI data centre, the parts that move power and light around rather than the accelerators that get the headlines, and they are where STMicro is positioning its portfolio.
The raise lands the company on the right side of a spending wave that has been kind to component suppliers. The hyperscalers are pouring capital into AI compute, and that spending has to pass through a long chain of suppliers before it reaches a finished data centre. STMicro’s power and photonics products sit on that chain, and the upgraded forecast is the company’s read on how much of the build-out it can convert into revenue.
STMicro is better known for the chips that go into cars and industrial equipment, markets that have been soft, which makes the data-centre line one of the brighter parts of its mix even as it remains a modest share of overall revenue.
The company runs at a scale where $1bn from data centres is meaningful but not yet dominant, which is part of why the trajectory, rather than the absolute figure, is what it chose to emphasise.
STMicro framed the upgrade as a function of both demand and supply, pairing the AI-infrastructure pull with what it called recent progress on capacity ramp-up, the suggestion being that it can now make and ship more of what its customers want than it previously expected to.
What the company did not detail is the margin profile of the data-centre business, or how much of the 2026 and 2027 revenue is already under contract versus forecast. Those specifics would normally surface at the next quarterly results.
For now, STMicro has told the market to expect more from data centres than it said a few months ago, and named the customer doing much of the lifting.
