STMicro's 2027 AI revenue to be four-fifths optics, CFO says (updated)

STMicroelectronics

09/09/2026 17:16

Updates with CFO quote paragraph 3, background paragraph 4
By Nathan Vifflin
Sept 9 (Reuters) - About 80% of the more than $2 billion in AI data-centre revenue STMicroelectronics STMPA.PA is targeting for 2027 will come from chips used in fibre-optic data links, its finance chief said on Wednesday, providing the first breakdown of a target the company raised in July.    
The remaining 20% will come from chips used for cooling systems and power conversion inside servers, Chief Financial Officer Lorenzo Grandi told Citi's Global TMT Conference in New York.    
"Short term will be mainly driven by the connectivity portion," Grandi said. 
He added that ST's presence in server power is currently limited and that the company does not expect meaningful revenue from the business before 2028.
The comments show that, for now, the AI business of one of Europe's largest chipmakers is concentrated in connectivity chips, with the larger opportunity in server power expected to emerge only after 2028.

 (Reporting by Nathan Vifflin in Gdansk. Editing by Mark Potter)
 ((nathan.vifflin@thomsonreuters.com; gdansk.newsroom@thomsonreuters.com; +48 58 769 67 13;))