STMicroelectronics projects AI data-center revenue to exceed $2 billion by 2027

STMicroelectronics expects its revenue from AI data centers to exceed $1 billion this year and rise to well above $2 billion by 2027. Speaking at a Citibank technology event, CFO Lorenzo Grandi noted that the company is seeing strong bookings and improving demand visibility, particularly within artificial intelligence infrastructure, automotive, and industrial applications.

Connectivity products are expected to be the primary driver of this growth, accounting for approximately 80% of the company’s data-center billings by 2027. This segment includes silicon photonics, microcontrollers, and BiCMOS electronic integrated circuits used in optical transceivers. The remaining 20% of revenue is projected to come from applications serving thermal and power flows.

Grandi also highlighted that distributor inventories are currently “super lean,” and lead times for certain industrial products have risen to as much as 50 weeks. The company anticipates that product pricing may remain stable or increase slightly through 2026 and 2027, supporting overall profitability.