STMicroelectronics shares jumped 8.2% in European trading Tuesday after the French-Italian chip maker said it now expects data-center revenue of about $1 billion in 2026, more than doubling its earlier target of above $500 million. The company, which supplies chips to Apple and SpaceX, said the upgrade reflects “continued strong demand for AI infrastructure and recent progress on ramping up capacity.”
The stock’s gain added to a rally that has pushed the share price to levels last seen more than two decades ago. According to FactSet data, STMicroelectronics has nearly tripled in value since the start of the year.
The company also raised its forward guidance for data-center revenue, saying it could double again in 2027 if current trends continue. STMicroelectronics had previously estimated 2027 segment revenue at well above $1 billion; the new projection points to a figure north of $2 billion.
The upgrade is the latest sign of how deepening demand for the building blocks of artificial-intelligence systems is reshaping the semiconductor industry. A memory-chip shortage driven by AI infrastructure buildout has fueled a global rally in chip stocks, lifting companies across the supply chain. SK Hynix and Micron Technology, two South Korean and U.S. memory makers, have each surpassed $1 trillion in market value this year as investors pile into shares of AI-focused suppliers.