STMicroelectronics Raises Data-Center Revenue Target to $1 Billion Amid AI Chip Demand Surge

STMicroelectronics NV shares jumped 11% after the Swiss chipmaker doubled its 2026 data-center revenue target to $1 billion, citing unprecedented demand for AI infrastructure components. The company now expects this segment to double again in 2027—a bullish revision from prior guidance of "well above $1 billion."

The rally extends STM's 168% YTD gain as it pivots from sluggish auto-chip markets to powering AI data centers. Notably, the firm holds 90% market share in SpaceX satellite chips since 2015, demonstrating its aerospace-grade reliability now being repurposed for terrestrial AI workloads.

While traditional crypto mining chips like Bitmain's offerings face obsolescence, STM's optical cable and power-chip solutions are becoming critical infrastructure for AI/blockchain convergence. This positions the company to benefit from both enterprise AI adoption and next-gen decentralized networks requiring high-performance hardware.