STMicroelectronics shares jumped 11% on Tuesday after the Swiss chip maker sharply increased its data center revenue targets. This move shows that the AI infrastructure boom is spreading beyond just GPU and memory companies. The updated guidance also highlights how the company’s relationship with SpaceX could offer even more growth.
STMicro now expects about $1 billion in data center revenue for 2026, up from its earlier target of just over $500 million. Management said that number could roughly double in 2027, compared to previous guidance of well above $1 billion. These upgrades show growing demand for the company’s power chips and optical cable products, which are now key parts of the AI data center supply chain.
The company is mainly known for its automotive semiconductors, a market that has struggled for more than a year. Strong data center revenue is making up for that weakness and has helped the stock rise 166% so far this year through Monday’s close.
STMicro also has a strong connection with SpaceX. It has supplied chips for SpaceX satellites since 2015 and says it holds about 90% of the market in that area. With SpaceX expected to go public this month, STMicro could benefit from the company’s growth plans. At an investor conference on Tuesday, an executive said STMicro is talking about orbital data centers but has not yet fully explored that opportunity.
The rally lifted other analog semiconductor stocks as well. ON Semiconductor rose 5.6%, Texas Instruments gained 2.5%, and Infineon Technologies was up 5.9% in U.S. trading on Tuesday.
