STMicro Raises 2026 Data Center Revenue Outlook to $1 Billion, Sees $2 Billion in 2027

businesscompany-earningstech 2 posts · 2 accounts

STMicroelectronics raised its 2026 revenue outlook for its data center business to about $1 billion from a prior target of 'nicely above $500 million' amid booming demand. The company said it expects data center revenue to double again to about $2 billion in 2027.

About two-thirds of the expected data center revenue is expected to come from optical components, including MCUs, silicon photonic PICs and BiCMOS EICs, with power chips making up the rest. STMicro said the 2027 projection is based on current customer engagements.

From the sources (2 posts)

@business

STMicro nearly doubled its forecast for revenue from its data centers business to $1 billion this year on booming demand

@wallstengine

$STM raised its 2026 data center revenue outlook to ~$1B from “nicely above $500M.” The company also expects data center revenue to double again to ~$2B in 2027, based on current customer engagements. About 2/3 of the revenue is expected

Market impact

30 small

STM COHR SOXX

Why it matters: STMicro nearly doubling its 2026 data center revenue outlook (mostly optical/silicon-photonics) mainly lifts its own stock and confirms strong AI-datacenter optical demand, giving a modest read-through to optical-component peers, but it is a self-reported single-name guidance raise with limited sector-wide repricing.

At publish time: Headline is a self-announced guidance raise (doubling the 2026 target to ~$1B and projecting ~$2B in 2027) — a big-number, PR-flavored single-name event; discount per launch/own-good-news rules.

model confidence: medium

What happened next

1–2 weeks later

no follow-up

Corpus follow-ups are all unrelated AI/data-center stories; none touch STM, optical components, COHR, or SOXX, so the predicted read-through is unconfirmed.

based on follow-up coverage

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