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(Sharecast News) - Shares in semiconductor group STMicroelectronics rallied in Paris on Tuesday after the chip contract manufacturer raised revenue guidance for its data centres business.
Data centre revenues are now tipped to be around $1bn in 2026, compared with the previous target of "nicely above $500m".
Looking further ahead, if current trends continue with its clients, the company reckons revenues could double in 2027, compared with earlier projects of "well above $1bn".
In a short statement to investors, STM said the upgrade was a result of "continued strong AI infrastructure-led demand and based on recent progress made on capacity ramp-up".
The stock was up 11% at 65.81 by 1042 BST.
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