STM
T2STMicroelectronics N.V.
AI '26: Light & Copper ConnectivityAI '26: PhotonicsAI '26: Power ComponentsAI Bottleneck '25: Active ComponentsAI Power '26: Active Power MgmtEU Chips Act '26: Power, Automotive & Sovereign ComputeEuro Spend '26: EU Chips Act 2.0Humanoid '25: Connectivity, Integration & Platform EnablersHumanoid '25: Sensing & PerceptionMegaTech '25: Amazon EcosystemOptical Connectivity '26: Silicon Photonics & Optical EnginesSpace Supply Chain '26: Space-Grade Chips & Electronics
OverviewSTMicroelectronics designs and manufactures semiconductors, including analog chips, microcontrollers, power semiconductors, and sensors. These are vital for aut
STMicroelectronics designs and manufactures semiconductors, including analog chips, microcontrollers, power semiconductors, and sensors. These are vital for automotive, industrial, and personal electronics. The company is a key supplier for AI data centers, particularly in optical connectivity, now expecting over $1 billion in 2026 and over $2 billion in 2027 from this segment, serving hyperscalers like AWS.
- What They Do (Plain English & Analogies)
- STMicroelectronics is a global company that designs, develops, manufactures, and sells tiny electronic brains and power controllers, known as semiconductors. Imagine them as providing the essential 'nervous system' and 'power grid' for a vast array of electronic devices. These chips go into everything from the complex systems in your car, to the smart features in your phone, the robots in factories, and the massive computers in data centers that power artificial intelligence. They essentially make the fundamental building blocks that allow modern electronics to function, process information, and manage power efficiently.
- Very Brief History
- STMicroelectronics N.V. was founded in 1987 through the merger of SGS Microelettronica of Italy and Thomson Semiconducteurs of France. Headquartered in Plan-les-Ouates, Switzerland, the company has grown to become a prominent global semiconductor provider, engaging in the entire product lifecycle from design to manufacturing and sales.
- "Street Stereotype"
- STMicroelectronics is generally perceived as a diversified semiconductor powerhouse with strong positions in key high-growth markets. The 'street stereotype' is that STM is a crucial enabler for the automotive industry (especially electric vehicles and advanced driver-assistance systems with its silicon carbide and sensor technologies), industrial automation (with its leading microcontrollers and solutions for physical AI), and increasingly, a significant player in the burgeoning AI data center market (through its photonics, power solutions, and high-performance microcontrollers) and the low-earth-orbit (LEO) satellite sector. Investors see it as a company with a broad portfolio that is strategically aligned with major technological shifts.
- Subsidiaries On Linked In*
- {"subsidiaries":[]}
- Customer Sectors & Example Clients
- STMicroelectronics serves customers across several key sectors: Automotive, Industrial, Personal Electronics, and Communication Equipment & Computer Peripherals. Specific top clients and partners mentioned include: * **Amazon Web Services (AWS):** A multiyear, multibillion-U.S. dollar commercial engagement for high-performance compute infrastructure for cloud and AI data centers. * **NVIDIA:** Collaboration on integrating ST sensors, microcontrollers, and motor control solutions with the NVIDIA Robotics ecosystem for humanoid robots and physical AI systems, and for expanding 800-volt DC AI data center power conversion portfolios. * **Qualcomm Technologies:** Support for motion sensing and secure wireless technology on Qualcomm's new Personal AI platform. * **OEM and Tier 1 ecosystems:** In the automotive sector for electric, hybrid, and traditional vehicles. * **Hyperscalers:** For optical interconnect solutions for data centers and AI clusters.
- New Customers / Segments They'Re Targeting
- STMicroelectronics is actively targeting and expanding its presence in several new and high-growth segments. A primary focus is the **AI data center market**, where they are a core enabler for the Cloud AI era, seeing strong traction in optical connectivity driven by silicon photonics ICs, electronic ICs, and microcontrollers. They are also building a pipeline for low-voltage power and analog products for the power stage of Cloud AI. Another significant target is the **Low Earth Orbit (LEO) satellite communication and new space opportunity**, where ST is positioned as a core semiconductor enabler, expecting a substantial increase in their addressable market by 2030. Furthermore, ST is strongly positioned to support the ongoing transformation of **factory automation, robotics, and power and energy infrastructure**, specifically addressing the emerging needs of **physical AI** with intelligent sensing, real-time control, and efficient power management. They are also introducing secure chips for smartphone and personal electronics manufacturers to prepare for quantum-ready security requirements.
- Supply Chain And Sourcing Geographies
- STMicroelectronics operates an IDM (vertically integrated manufacturing) model, with manufacturing and packaging and testing facilities globally. Key sourcing and manufacturing geographies mentioned include: * **Italy:** Operates wafer fabs in Agrate (for 300-millimeter analog technology) and Catania (for silicon carbide, including a new manufacturing facility for SiC substrates). * **China:** Has a 'China for China' supply chain strategy, with 14-nanometer technology qualified with a main partner (Huahong) to support growth in China, especially for Industrial and optical cable. They also have a joint venture with Sanan in Chongqing for silicon carbide production. * **France:** Major front-end manufacturing hubs include Crolles, Rousset, and Tours. * **Morocco:** The Bouskoura site hosts back-end manufacturing activity, including chip testing and packaging, and since 2022, a production line for silicon carbide products. * **Other locations:** The company also operates manufacturing facilities in Singapore, Sweden, Malaysia, Malta, and the Philippines.
- Sales Geographies And Expansion Plans
- STMicroelectronics currently sells its products across Europe, the Middle East, Africa, the Americas, and the Asia Pacific region. The company has a 'China for China' supply chain strategy, indicating significant sales and operations within China. While the transcript does not explicitly detail plans to expand sales into entirely new geographies, management's focus is on reinforcing its position and capturing growth within its existing global markets, particularly driven by new AI programs and engaged customer programs across all regions.
- How Key Themes May Help/Hurt
- The buildout of the **AI '26: Photonics** theme is a significant tailwind for STMicroelectronics. The explosive growth of AI and hyperscale data centers is creating unprecedented demand for high-bandwidth, low-latency optical interconnects, which directly benefits ST's silicon photonics ICs, electronic ICs, and microcontrollers for optical connectivity. The company's unique position in providing silicon photonics technology on 12-inch wafers and its scalability in Crolles factory capacity for this technology are key advantages. This theme helps STMicroelectronics achieve its raised revenue ambition for data centers, expecting well above $1 billion in 2026 and well above $2 billion in 2027. The shift from electrical to photonic interconnects due to physical limitations further solidifies ST's long-term growth in this area. While the theme is largely beneficial, potential challenges could arise from the timing of widespread Co-Packaged Optics (CPO) adoption, though ST is well-positioned with its current pluggable optics solutions. Also, any significant execution risks or persistent supply chain constraints for advanced components could impact production, though ST's IDM model and focus on capacity expansion aim to mitigate this.
3 Main Long-Term Bull Details
- Dominant Position in AI Infrastructure and Data Centers: STMicroelectronics is strategically positioned to be a major beneficiary of the AI super cycle, with strong growth drivers in cloud and AI data centers. The company expects data center revenues to be above $1 billion for 2026 and well above $2 billion for 2027, leveraging its broad portfolio of specialized technologies including silicon photonics, power solutions (SiC, GaN), analog, and microcontrollers.
- Robust Growth in Automotive and Industrial Markets: The company continues to see strong design momentum and growth in the automotive sector, driven by electric, hybrid, and traditional vehicles, ADAS, and silicon carbide. In the industrial market, ST's broad portfolio of microcontrollers, sensing, analog, and power devices is strongly aligned with industrial transformation trends and the evolving needs of physical AI, with solid growth expected in general-purpose microcontrollers.
- Significant Opportunity in Low-Earth-Orbit (LEO) Satellites: STMicroelectronics' LEO satellite business is progressing strongly, with a clear ambition to achieve well above $3 billion in cumulative revenues over the period 2026 to 2028. This emerging market represents a substantial new revenue stream and a long-term growth driver for the company.
3 Main Long-Term Bear Details
- Manufacturing Reshaping Program and Efficiency Impacts: STMicroelectronics is undergoing a significant manufacturing reshaping program, involving the transfer of technologies from 200mm to 300mm fabs and from 150mm to 200mm for silicon carbide. This transition is currently causing temporary suboptimal efficiency and non-recurring costs that negatively impact gross margin, with full benefits not expected until late 2027 or 2028.
- Customer Qualification Delays for New Capacity: The realization of benefits from new manufacturing capacities, such as the Agrate 300mm fab and 8-inch silicon carbide production, is heavily dependent on lengthy customer qualification processes. These delays, driven by customer constraints and the need for rigorous testing, can push out the full revenue and efficiency gains from these investments.
- Macroeconomic Uncertainty and Cyclicality in End Markets: Despite current positive trends, the broader semiconductor market remains cyclical and susceptible to global macroeconomic conditions. Downturns or volatility in consumer electronics, automotive, or other industrial sectors could dampen overall demand and capital expenditure, potentially offsetting growth from AI-driven segments and impacting the company's overall performance.
- Competitors And Differentiation
- STMicroelectronics competes in various semiconductor markets. The company differentiates itself by focusing on areas where analog, power, microcontrollers, and sensors intersect with real-world systems. They operate as an Integrated Device Manufacturer (IDM), investing in proprietary technologies and an extensive manufacturing footprint to provide expertise, supply security, and quality. STMicroelectronics was ranked the #1 vendor worldwide for general purpose microcontrollers for the fifth consecutive year. Their competitive positioning is strengthened by their unique capability to provide photonic, MEMS, microcontroller, power switch, power driver, controller, and sensor solutions for AI infrastructure.
- Recent Performance & What The Market'S Focused On
- STMicroelectronics reported Q2 2026 net revenues of $3.49 billion, which came in above the midpoint of their business outlook range, driven by higher revenues in Communication Equipment, Computer Peripherals, and Automotive. Gross margin was 34.8% (non-U.S. GAAP gross margin was 35.2%), in line with expectations. Non-U.S. GAAP diluted earnings per share was $0.31. The company generated a positive $75 million free cash flow. For Q3 2026, STMicroelectronics expects revenues of $3.7 billion (plus/minus 350 basis points) and a gross margin of about 37% (plus/minus 200 basis points). They anticipate Q4 revenues to be above $4 billion, representing a sequential improvement better than normal seasonality, driven mainly by AI data centers and LEO satellite communication. The market is primarily focused on STMicroelectronics' accelerating revenue growth in **AI data centers**, with the company raising its 2026 revenue ambition to above $1 billion and well above $2 billion in 2027. Investors are also closely watching the **sequential improvement in gross margin** despite temporary headwinds from manufacturing reshaping programs and associated non-recurring costs. The progress in **Low Earth Orbit satellite communication** and the performance of the **Automotive and Industrial segments** are also key areas of market focus.
- Revenue Segments And Estimated Mix
- Analog Products, MEMS and Sensors — Mix: n/m; Source: Q2 2026 earnings transcript; Trend: Grew 26% year-over-year; increased 8.2% sequentially. Operating margin was 10.1%.
- Power and Discrete products — Mix: n/m; Source: Q2 2026 earnings transcript; Trend: Increased 3.7% year-over-year; increased 19.2% sequentially. Operating margin was negative 21.4%.
- Embedded Processing — Mix: n/m; Source: Q2 2026 earnings transcript; Trend: Up 35.5% year-over-year; increased 17.7% sequentially. Operating margin was 19.7%.
- RF & Optical Communication — Mix: n/m; Source: Q2 2026 earnings transcript; Trend: Grew 32% year-over-year; increased 8.6% sequentially. Operating margin was 21.2%.
- AI Data Center Revenue — Mix: n/m; Source: Q2 2026 earnings transcript; Trend: Expected above $1 billion in 2026 and well above $2 billion in 2027.
- Product Brands
- STM32
- STM8
- SPC5
- Stellar series
- PIC100 platform
- MasterGaN solution
- iNEMO inertial modules
- BiCMOS (technology)
- BCD technologies
Bull / Bear DetailsSTMicroelectronics is poised for accelerated secular growth, primarily driven by its significantly raised AI data center revenue ambition (>$1B in 2026, >$2B in
Thesis
STMicroelectronics is poised for accelerated secular growth, primarily driven by its significantly raised AI data center revenue ambition (>$1B in 2026, >$2B in 2027) fueled by optical connectivity and silicon photonics. Diversified strength in Automotive, Industrial, and Low Earth Orbit satellites (>$3B cumulative 2026-2028) further underpins its position. Despite temporary manufacturing reshaping costs impacting gross margins, strong bookings and capacity expansion support a bullish outlook. (Updated: 2026-07-24)
Bull case
STMicroelectronics significantly raised its AI data center revenue ambition to above $1 billion in 2026 and well above $2 billion in 2027, a substantial increase from previous targets. This growth is driven by strong traction in optical connectivity, including silicon photonics ICs, electronic ICs, and microcontrollers, where ST is gaining market share in 800 gig and 1.6 terabit per second pluggable optics.
The company demonstrated robust demand across key verticals in Q2 2026, with Automotive revenues increasing 16% year-over-year and Industrial improving 34% year-over-year. Overall bookings are strong, with a book-to-bill ratio close to 2 and well above 1 in all end markets, providing improved visibility and a solid backlog that extends into next year.
STMicroelectronics is strategically expanding its 300-millimeter fab capacity at Crolles to support AI data center growth and address microcontroller tightness, with the Crolles factory expected to reach 15,000 wafers per week and go above. Additionally, the Low Earth Orbit satellite communication business is progressing strongly, with ST confirming well above $3 billion in cumulative space revenue over 2026-2028.
Bear case
STMicroelectronics continues to face temporary gross margin headwinds due to non-recurring costs from its manufacturing reshaping program, which impacted Q2 gross margin by about 60 basis points. These costs, along with unused capacity charges from new fab startups in China, are expected to persist at similar levels throughout 2026, delaying the achievement of optimal efficiency and higher gross margins until the program's completion in late 2027.
While overall demand is strong, Personal Electronics revenue growth is expected to be below normal seasonality in Q3 and Q4 2026, moderating ST's sequential growth. Furthermore, the company is experiencing some tightness in general purpose microcontrollers and temporary capacity limitations related to the transition of legacy analog and silicon carbide technologies, which could impact supply.
The full benefits of new manufacturing capacities and technology transitions, such as 300mm and 8-inch silicon carbide production, are contingent on lengthy customer qualification processes, pushing out significant revenue and efficiency gains until late 2027 or 2028. Despite current positive trends, the broader semiconductor market remains susceptible to macroeconomic volatility, which could impact demand.
Bull / Bear Case
- Bear Case
- STMicroelectronics faces near-term gross margin pressure due to non-recurring costs from its manufacturing reshaping programs, which are expected to impact profitability throughout 2026. The full benefits of these strategic transitions, including the move to 300mm fabs and 8-inch silicon carbide production, are delayed until late 2027 or 2028 due to lengthy customer qualification processes. Additionally, the company anticipates a $140 million decrease in capacity reservation fees in 2026 compared to the previous year, impacting revenue. While AI data center demand is strong, STMicroelectronics' ability to fully meet this unconstrained demand is limited by its ramp-up capabilities and the need for additional capacity.
- Bull Case
- STMicroelectronics is strategically positioned to capitalize on the accelerating AI super cycle, evidenced by a multiyear, multibillion-dollar engagement with Amazon Web Services for AI data centers, with revenue targets of over $500 million in 2026 and exceeding $1 billion in 2027. The company is also a key player in the rapidly expanding low-earth-orbit (LEO) satellite market, aiming for over $3 billion in cumulative revenues from 2026 to 2028. Further growth is driven by its strong automotive sensor portfolio, bolstered by the NXP MEMS acquisition, and its leading position in general-purpose microcontrollers for industrial applications. Strong Q1 2026 bookings and normalized inventory signal robust demand and operational momentum, supporting expectations for double-digit revenue growth in 2026.
- More Compelling & Why
- Bear. Given a hypothetical P/E ratio of 35x compared to a peer average of 28x, the valuation appears stretched. The strongest bear argument is the temporary gross margin headwinds and delayed benefits from manufacturing transitions, which push out the realization of efficiency gains and revenue from new capacity, making the current premium valuation difficult to justify in the near term. My view would flip if STMicroelectronics demonstrates a faster-than-expected reduction in manufacturing reshaping costs and accelerated customer qualification for its new technologies, leading to earlier gross margin expansion and revenue recognition.
Key Factors
| Key Factor | Why It Matters | What To Watch | What It Signals | Where/How To Track | Free Alt Data | Paid Alt Data |
|---|---|---|---|---|---|---|
| AI Data Center Revenue Target Increase | STMicroelectronics significantly raised its data center revenue ambition, indicating stronger-than-expected demand for its AI infrastructure components. This signals robust growth and a positive shift in the company's revenue mix, making AI a more substantial earnings driver. | Monitor STMicroelectronics' actual data center revenue reported in upcoming earnings calls against the revised targets: approximately $1 billion for 2026 and potentially doubling to $2 billion for 2027. | Bullish: Data center revenue tracking at or above $1 billion for 2026 and showing strong progress towards $2 billion in 2027. | Company earnings releases and conference calls (next scheduled for Q2 2026 on July 23, 2026). | Financial news outlets (e.g., Reuters, Bloomberg) for analyst reports and company announcements. Google Trends for 'STMicroelectronics AI' or 'STMicroelectronics data center' search volume. | AlphaSense: Earnings call transcripts for keyword mentions and sentiment analysis. FactSet/Refinitiv: Consensus revenue estimates and revisions for data center segment. |
| Low-Earth-Orbit (LEO) Satellite Cumulative Revenue Target | The LEO satellite business is a rapidly growing segment for STMicroelectronics, with a substantial cumulative revenue target. Achieving this target would demonstrate successful diversification and capture of a high-growth market. | Track progress towards the cumulative revenue target of well above $3 billion from the LEO sector between 2026 and 2028. Monitor annual LEO revenue, which is expected to approach $1 billion in 2026. | Bullish: LEO satellite revenue consistently meeting or exceeding annual projections, indicating strong execution towards the multi-year cumulative target. | Company earnings releases and investor calls (dedicated call on LEO satellites was held on May 4, 2026). | Industry news (e.g., SatNews, SpaceNews) for LEO satellite constellation deployments and STMicroelectronics' involvement. Company press releases on new design wins or ramp-ups. | Yole Group: Space market reports and forecasts. Sensor Tower/App Annie: Satellite service subscriber growth (indirect proxy for demand). |
| Silicon Photonics (PIC100) High-Volume Production and Capacity Expansion | High-volume production of the PIC100 platform is critical for STMicroelectronics to capitalize on the surging demand for high-bandwidth, low-latency optical interconnects in AI data centers. Capacity expansion ensures the company can meet this demand. | Monitor announcements regarding the quadrupling of PIC100 production capacity by 2027 and further expansion in 2028. Look for updates on customer capacity reservations and new product roadmaps (e.g., PIC100 TSV). | Bullish: Confirmation of capacity expansion milestones being met or exceeded, and continued strong customer commitments for future production. | Company press releases, technology conferences (e.g., OFC), and investor presentations. | Industry forums and tech blogs (e.g., LightCounting, The ST Blog) for discussions on silicon photonics adoption and STMicroelectronics' technology. Google Trends for 'STMicroelectronics PIC100' or 'silicon photonics production'. | Yole Group: Silicon photonics market reports and capacity forecasts. Supply chain intelligence platforms: Fab utilization rates for STMicroelectronics' 300mm lines. |
| AWS Multiyear, Multibillion-Dollar Commercial Engagement | This strategic engagement with Amazon Web Services provides STMicroelectronics with long-term, high-volume demand visibility for its advanced semiconductor technologies in cloud and AI data centers, including an equity-linked element. | Look for updates on the volume of STMicroelectronics' products purchased by AWS and its affiliates, as this directly impacts the vesting of warrants issued to AWS. | Bullish: Continued strong purchasing volumes from AWS, leading to the vesting of warrants and reinforcing the long-term strategic partnership. | STMicroelectronics' SEC filings (e.g., Form 6-K) for updates on the AWS agreement and warrant vesting. AWS announcements regarding its infrastructure buildout. | Amazon Web Services (AWS) newsroom for announcements on new data center regions or AI infrastructure investments. Industry analyst reports on hyperscaler capital expenditures. | Dell'Oro Group: Hyperscaler capital expenditure forecasts. Supply chain intelligence platforms: Component shipments to major cloud providers. |
| Manufacturing Reshaping Program and SiC Transition Progress | The ongoing manufacturing reshaping program, including the transition to 300mm silicon and 200mm silicon carbide, is crucial for future capacity and gross margin improvement. Temporary inefficiencies are currently impacting profitability. | Monitor the impact of non-recurring costs related to manufacturing reshaping on gross margin, expected to remain at similar levels throughout 2026. Look for updates on customer qualification times for new 300mm and 8-inch SiC products, with benefits expected in late 2027 and 2028. | Bullish: Sooner-than-expected reduction in manufacturing reshaping costs and faster customer qualification of new technologies, leading to earlier realization of efficiency benefits and gross margin expansion. Bearish: Prolonged impact of non-recurring costs or delays in customer qualifications, pushing out the benefits of the manufacturing transformation. | Company earnings calls and investor presentations for updates on manufacturing efficiency, capacity utilization, and gross margin drivers. | Industry news on semiconductor manufacturing capacity and technology transitions. Company career pages for job postings related to 300mm or SiC manufacturing roles. | Yole Group: Foundry technology and capacity reports. Thinknum: Engineering job postings growth for '300mm fab' or 'silicon carbide' roles at STMicroelectronics. |
Key Reported Metrics, Reratings Triggers & ResultsThis segment's growth is a direct indicator of STMicroelectronics' success in supplying critical semiconductors for the rapidly expanding AI data center infrast
| Key reported metrics | Rerating thresholds | Earnings results | ||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Last period | Why it matters | What's needed for rerating | Rerating context | Earnings date | Actual reported | Hit target? | Notes |
| Communications Equipment and Computer Peripherals Revenue | 41% | This segment's growth is a direct indicator of STMicroelectronics' success in supplying critical semiconductors for the rapidly expanding AI data center infrastructure, a major strategic focus. | The Communications Equipment and Computer Peripherals Revenue metric needs to demonstrate a clear trajectory towards, and ideally exceed, STMicroelectronics' revised $1 billion AI data center revenue target for 2026. This would likely be reflected in Q2 2026 earnings by reporting year-over-year growth in this segment at or above the 41% seen in Q1 2026, and confirming that AI data center revenue is tracking at or above the implied quarterly run rate for the annual target. | Achieving or surpassing this target is crucial as it validates STM's strategic pivot into AI data center infrastructure, a key investment thesis driver. It confirms the effectiveness of its AWS and NVIDIA partnerships and silicon photonics production, reinforcing its competitive position and justifying its premium valuation. | Part of total net revenues of $3.49 billion (50% year-over-year growth). | Yes | The Communications Equipment and Computer Peripherals segment revenue grew 50% year-over-year, exceeding the 41% growth seen in Q1 2026. STMicroelectronics also raised its 2026 AI data center revenue ambition to above $1 billion and to well above $2 billion for 2027, confirming a strong trajectory and exceeding the target. This growth is driven by strong traction in optical connectivity, including silicon photonics, and is accretive to gross margin. | |
| Gross Margin | 1.2% | Gross margin is a critical profitability indicator, reflecting the company's pricing power, manufacturing efficiency, and product mix. Its sequential improvement is a key focus for management and investors. | Given that STMicroelectronics reported a Q1 2026 gross margin of 33.8% (U.S. GAAP) and guided for a Q2 2026 gross margin of approximately 34.8% (U.S. GAAP) or 35.2% (non-U.S. GAAP), for the stock to rerate higher, the Gross Margin metric needs to hit at least 35.5% in Q2 2026, exceeding the high end of its non-U.S. GAAP guidance. Additionally, management needs to provide a clear and confident outlook for continued sequential improvement throughout 2026 towards the 45% gross margin target in 2027-2028, with tangible progress on reducing manufacturing reshaping costs and accelerating customer qualifications for new technologies. This would signal that the temporary headwinds are easing faster than expected and the company is on track to close the gap with higher-margin peers. | Hitting this threshold matters as it demonstrates STMicroelectronics' ability to overcome temporary manufacturing headwinds and improve profitability. It validates the investment thesis by showing enhanced efficiency in high-growth areas like AI data centers, automotive, and LEO satellites, signaling a stronger competitive position and driving a positive rerating based on improved earnings power and valuation. | 34.8% (U.S. GAAP) and 35.2% (non-U.S. GAAP), (+1.30pp year-over-year). | Partially | The non-U.S. GAAP gross margin of 35.2% was slightly below the 35.5% rerating target. However, it was in line with the midpoint of the company's business outlook range. Management provided a confident outlook for sequential improvement, guiding for Q3 gross margin of 37% and anticipating further sequential improvement in Q4, despite ongoing temporary headwinds from manufacturing reshaping costs and unused capacity charges. The stock plunged 13.8% in pre-market trading following the earnings release. | |
| Automotive Revenue | 15% | Automotive is a core market for STMicroelectronics, with growth driven by electrification, ADAS, and sensor content. This metric reflects the company's performance in a key strategic sector. | Automotive Revenue growth of at least 18% year-over-year and positive sequential growth in Q2 2026. This would demonstrate a strong rebound from the 10% sequential decline in Q1 2026 and surpass the 15% year-over-year growth seen in Q1, aligning with or exceeding the anticipated 16.5% year-over-year growth for the broader automotive semiconductor industry in 2025-2026. | Automotive is a core strategic sector for STMicroelectronics, driven by electrification, ADAS, and sensor content. Strong performance here validates the company's competitive position in a high-growth market, signaling effective integration of acquisitions, and justifying its premium valuation. Investors are watching for a sustained recovery and growth in this segment to confirm the long-term investment thesis. | Part of total net revenues of $3.49 billion (16% year-over-year growth, 14% sequential growth). | No | Automotive revenue grew 16% year-over-year and 14% sequentially, which was below the 18% year-over-year rerating target. However, management noted that Automotive revenues came in better than expected and above the market's anticipated 13-14% year-over-year growth for the semiconductor industry. | |
Key QuestionsCan STMicroelectronics achieve its significantly raised AI data center revenue target of over $1 billion for 2026 and well above $2 billion for 2027, and effect
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Earnings Transcript Summary
· 2026Q2 Earnings Call
| 3 Things Management Is Most Focused On | Call Takeaway & Tone | Prior Quarter'S Y/Y Growth By Segment | 3 Things Analysts Most Pressed On (And Mgmt Responses) | Revenue Segments |
|---|---|---|---|---|
| 1. **Leveraging AI-driven programs for accelerated growth**: Management is highly focused on capturing the significant and accelerating demand in AI data centers and optical connectivity, raising their revenue ambition for data centers to above $1 billion in 2026 and well above $2 billion in 2027. 2. **Improving gross margin amidst manufacturing reshaping**: The company is focused on sequential gross margin improvement, driven by better product mix and lower unused capacity charges, while actively managing the temporary negative impacts from non-recurring costs related to their manufacturing reshaping program. 3. **Sustaining strong performance in key verticals**: Management emphasizes continued strong growth in Automotive (driven by application-specific ICs, sensors, and ADAS) and Industrial (fueled by general purpose microcontrollers, analog products, and physical AI applications), alongside significant opportunities in Low Earth Orbit (LEO) satellite communication. | The overall takeaway of the call was **positive and confident**. Management highlighted accelerating demand, strong bookings (book-to-bill close to 2 overall, significantly above 2 in Communication Equipment & Computer Peripherals), and improved visibility. The company raised its revenue ambition for data centers, expecting over $1 billion in 2026 and well above $2 billion in 2027, driven by optical connectivity and silicon photonics. While acknowledging temporary gross margin headwinds from manufacturing reshaping and new fab ramp-ups, management expressed confidence in sequential gross margin improvement and achieving long-term financial targets. Strong growth was also noted in Automotive and Industrial segments, with significant opportunities in LEO satellites. The tone was optimistic about future growth drivers and the company's strategic positioning, despite some temporary operational challenges. | Analog products, MEMS and Sensors: 23.2% year-over-year growth. Power and Discrete products: 1.8% year-over-year decrease. Embedded Processing revenues: 31.3% year-over-year growth. RF and optical communication: 33.9% year-over-year growth. | 1. **Q4 Gross Margin Trend and 2027 Outlook**: Analysts inquired about the expected gross margin trend into Q4 2026 and 2027. Management (Lorenzo Grandi) confirmed expectations for sequential gross margin improvement in Q4 compared to Q3's 37%, but noted that this improvement would be somewhat limited by persistent unused capacity charges (due to new fab startups in China) and ongoing non-recurring costs from the manufacturing reshaping program, as well as a neutral FX impact in Q4. 2. **Data Center Revenue Increase Drivers and Gross Margin Accretion**: Analysts pressed on the reasons for the significantly increased 2027 data center revenue ambition (well above $2 billion) and whether this growth would be accretive to gross margins. Management (Jean-Marc Chery and Remi El-Ouazzane) attributed the growth to engaged customer programs and the acceleration in adoption of 800 gig and 1.6 terabit per second pluggable optics, where ST is gaining market share in microcontrollers, electronic ICs, and silicon photonics. Lorenzo Grandi confirmed that the data center product mix is positively contributing to gross margins. 3. **Capacity for Growth and Silicon Carbide Improvement**: Analysts questioned ST's capacity to meet accelerating demand, particularly in AI data centers and general-purpose microcontrollers, and sought an update on the silicon carbide business. Management (Jean-Marc Chery) stated confidence in sustaining AI data center growth through Crolles fab expansion and addressed microcontroller tightness with 300mm fab and China strategy. Marco Cassis confirmed positive dynamics in silicon carbide, with Q2 revenue growth in the low teens year-over-year and mid-30s quarter-over-quarter, projecting double-digit growth for 2026. | Analog Products, MEMS and Sensors: 26% year-over-year growth. Power and Discrete products: 3.7% year-over-year growth. Embedded Processing revenues: 35.5% year-over-year growth. RF & Optical: 32% year-over-year growth. Communications Equipment & Computer Peripherals: 50% year-over-year growth. Industrial: 34% year-over-year growth. Personal Electronics: 20% year-over-year growth. Automotive: 16% year-over-year growth. |
· 2026Q1 Earnings Call
| 3 Things Management Is Most Focused On | Call Takeaway & Tone | Prior Quarter'S Y/Y Growth By Segment | 3 Things Analysts Most Pressed On (And Mgmt Responses) | Revenue Segments |
|---|---|---|---|---|
| 1. **Leveraging AI-driven programs for growth**: Management is highly focused on capturing upside from new AI-driven programs, particularly in data centers, with expectations of revenues nicely above $500 million for 2026 and well above $1 billion for 2027. They highlighted a multiyear multibillion U.S. dollar commercial engagement with Amazon Web Services for high-performance compute infrastructure. 2. **Manufacturing footprint reshaping and gross margin improvement**: The company is in the middle of executing a transformation program to reshape its manufacturing footprint, moving technologies to 300-millimeter fabs and 200-millimeter for silicon carbide. This is expected to progressively improve gross margin, with full benefits anticipated by the end of 2027 and into 2028. 3. **Strong booking momentum and normalized inventory**: Management emphasized strong booking momentum in Q1 with book-to-bill well above 1 across all end markets and regions, indicating improving demand. They also noted that inventories in distribution have further decreased and are now normalized. | The overall takeaway of the call is cautiously optimistic. Management reported improving demand with strong bookings and normalized inventory, leading to an expectation of double-digit revenue growth for 2026, driven significantly by new AI programs and the low-earth-orbit satellite business. While gross margin is expected to improve sequentially throughout 2026, the company is in the midst of a manufacturing reshaping program that is causing some temporary inefficiencies and costs, with full benefits expected later in 2027-2028. The tone was positive regarding future growth opportunities, particularly in AI data centers and optical interconnects, but acknowledged ongoing macroeconomic uncertainty and the transitional nature of their manufacturing improvements. | For Q4 2025: * Analog products, MEMS and Sensors (AM&S): 7.5% year-over-year growth. * Power and Discrete products (P&D): 31.6% year-over-year decrease. * Microcontrollers, Digital ICs and RF products (MDRF): 7% year-over-year growth. (Note: This segment combines 'Embedded Processing' and 'RF & optical communication' from the Q1 2026 reporting structure). | 1. **Q1 2026 growth drivers and H2 2026 seasonality**: Joshua Buchalter from TD Securities asked about the shape of the year and if Q3/Q4 would be above seasonal due to idiosyncratic growth drivers. Management responded that strong Q1 booking showed no pull-in orders, with 85-90% billable in 2026, leading to confidence in usual H2 vs H1 seasonality. They highlighted Automotive (ADAS, SiC, sensors, NXP MEMS acquisition), Industrial (general purpose MCUs), Personal Electronics (engaged programs, not a big H2 contributor due to profile change), Data Center (strong growth, cloud optical interconnect, PIC100, BiCMOS, MCUs, analog, power discrete), confirming >$500M for 2026 and >$1B for 2027. They also noted a negative impact from decreasing capacity reservation fees ($140M lower). 2. **Pricing backdrop and gross margin impact**: Joshua Buchalter and Francois Bouvignies from UBS asked about pricing changes and their impact on gross margin. Management (Lorenzo Grandi) stated that Q1 price decline was low single-digit as expected. He now expects a very low single-digit price decline for the year, seeing a better situation than a few months ago, with some selective price increases. He clarified that pricing is "quite neutral" for the Q1 to Q2 gross margin dynamic, not a boost or detractor. 3. **Gross margin evolution into H2 2026 and 2027**: Janardan Menon from Jefferies asked about puts and takes for H2 gross margin and the path to 45%. Management (Lorenzo Grandi) confirmed sequential improvement in gross margin from Q1 to Q4, driven by improved unused capacity charges (though some legacy areas will still have them), progressive manufacturing efficiency improvement (benefits mainly in 2027), and positive mix. He noted negatives like lower capacity reservation fees and temporary suboptimal efficiency due to manufacturing reshaping (moving technologies from 200mm to 300mm, 150mm SiC to 200mm). He expects to continue seeing progressive improvement in Q3 and Q4. | Analog products, MEMS and Sensors: 23.2% year-over-year growth. Power and Discrete products: 1.8% year-over-year decrease. Embedded Processing revenues: 31.3% year-over-year growth. RF and optical communication: 33.9% year-over-year growth. |
Transcript Tidbits
| About Expanding Eligible Market | About Competition | About The Broader Industry | Where Things Are Headed | Updates On Theme | Broader Themes Emerging | Bullish-Leaning Quotes (Short) | Bearish-Leaning Quotes (Short) | Hiring |
|---|---|---|---|---|---|---|---|---|
| STMicroelectronics acquired NXP's MEMS sensor business, which is highly complementary and strengthens their automotive sensor business. The company is expanding its presence in the AI data center market, with a multiyear multibillion U.S. dollar commercial engagement with Amazon Web Services for high-performance compute infrastructure. They are also expanding their 800-volt DC AI data center power conversion portfolio in collaboration with NVIDIA. STMicroelectronics has started high-volume production for its silicon photonics-based PIC100 platform for optical interconnects in data centers and AI clusters. The low-earth-orbit satellite business is progressing strongly, with ST selected to develop a power amplifier controller for direct-to-cell satellites and ramping shipments to a second large customer. The company is collaborating with NVIDIA to integrate ST sensors, microcontrollers, and motor control solutions into the NVIDIA Robotics ecosystem for humanoid robots and other physical AI systems. They also announced support for motion sensing and secure wireless technology on Qualcomm Technologies' new Personal AI platform. ST expects 2026 revenues to show double-digit growth beyond its addressable market dynamics and engaged customer programs, driven by new AI programs. | STMicroelectronics was ranked the #1 vendor worldwide for general purpose microcontrollers for the fifth consecutive year based on research by Omdia. The company views its unique position as capable of providing photonic, MEMS, microcontroller, power switch, power driver, controller, and sensor solutions for AI infrastructure as a significant competitive advantage. | Despite macroeconomic uncertainty, STMicroelectronics observed improving demand with strong booking momentum and normalized inventory in distribution during Q1 2026. The book-to-bill ratio was well above 1 across all end markets and regions. The industrial segment's inventories in distribution have also normalized. The broader semiconductor market is experiencing an accelerating global AI super cycle, driving unprecedented demand for leading-edge logic, HBM, advanced packaging, and network infrastructure. | STMicroelectronics expects Q2 2026 revenues to be $3.45 billion, increasing 11.6% sequentially and 24.9% year-over-year at the midpoint. Gross margin is projected to be about 34.8% for Q2 2026, with non-U.S. GAAP gross margin at approximately 35.2%. The company anticipates sequential gross margin improvement throughout Q1, Q2, Q3, and Q4 of 2026. STMicroelectronics confirmed its data center revenue expectation to be nicely above $500 million for 2026 and well above $1 billion for 2027. The company expects 2026 revenues to show double-digit growth, driven by new AI programs. Benefits from the Agrate 300-millimeter fab and the 6-inch to 8-inch silicon carbide transition are expected more towards the end of 2027 and into 2028 due to customer qualification times. Production at the Sanan JV is expected to start ramping up by the end of 2026. STMicroelectronics aims to fulfill as much of the unconstrained demand from customers for AI data centers as possible, expecting 2026 to be a significant breakthrough year for AI data center revenue. The company remains on track to become carbon neutral by 2027 on Scopes 1 and 2, and for product transportation, business travel, and employee commuting for Scope 3, targeting 100% renewable electricity by 2027. | Silicon | Physical AI systems, industrial transformation trends. | “strong booking momentum during Q1 with book-to-bill well above 1 across all end markets and regions.” “We are also proud to have been ranked the #1 vendor worldwide for general purpose microcontrollers for the fifth consecutive year based on research by Omdia.” “We confirm our data centers revenue expectation to be nicely above USD 500 million for 2026 and well above $1 billion for 2027.” “2026 will show a significant breakthrough in our revenue linked to AI data center.” “We have a clear path to improve gross margin while staying at the forefront of innovation.” | “Automotive, during the quarter, revenue declined 10% sequentially.” “Personal Electronics, first quarter revenues were down 14% sequentially, reflecting the seasonality of our engaged customer programs.” “Q1 gross margin included about 50 basis points of negative impact resulting from a nonrecurring cost related to our manufacturing reshaping programs.” “The only negative aspect of the revenue in '26 is capacity reservation fees that will decrease, okay, $140 million compared last year.” “The limitation is more related to the qualification time of our customer.” |
| About Expanding Eligible Market | About Competition | About The Broader Industry | Where Things Are Headed | Updates On Theme | Broader Themes Emerging | Bullish-Leaning Quotes (Short) | Bearish-Leaning Quotes (Short) | Hiring |
|---|---|---|---|---|---|---|---|---|
| STMicroelectronics is expanding its eligible market through several initiatives, including the integration of NXP's MEMS sensors business, which is strengthening its Automotive Sensors business with awards for active safety and tire pressure monitoring. The company is also addressing the emerging needs of physical AI by supporting factory automation, robotics, and power and energy infrastructure with its portfolio, and has launched new industrial MEMS sensors with embedded AI and a compact 3D LiDAR module for Edge AI systems. Furthermore, ST is a core enabler for the Cloud AI era, seeing strong traction in optical connectivity driven by silicon photonics ICs, electronic ICs, and microcontrollers, leading to a raised revenue ambition for data centers to above $1 billion in 2026 and well above $2 billion in 2027. The company is also leveraging relationships with non-traditional AI server companies, such as those from solar power and battery storage industries. A significant opportunity is seen in Low Earth Orbit satellite communication, with an addressable market expected to reach around $3 billion by 2030, and ST expects to generate well above $3 billion in cumulative space revenue over 2026-2028. Additionally, ST has invested in Quobly to accelerate the industrialization of silicon-based quantum computers. | STMicroelectronics maintains a solid competitive position in various markets. In Automotive, the company's growth is driven by its strong position in application-specific ICs and sensors for conventional applications, electrical powertrain, and ADAS, including smart power ICs based on proprietary BCD technologies manufactured in its 300-millimeter wafer fab. The integration of NXP's MEMS sensors business is strengthening ST's Automotive Sensors business. For the Cloud AI era, ST is positioned as a core enabler, with strong traction in optical connectivity, particularly with silicon photonics ICs, electronic ICs, and microcontrollers. The company's capability to grow on advanced 300-millimeter technology is highlighted as a very important competitive factor. In the context of 800 gig and 1.6 terabit per second pluggable optics, ST has a fairly large market share in microcontrollers for the control plane, a growing share in electronic ICs driven by its BiCMOS technology, and accelerating revenue from its silicon photonics platform. | The broader industry is experiencing increased demand, with STMicroelectronics reporting strong bookings and a book-to-bill ratio close to 2 overall, and well above 1 in all end markets. There are improved visibility and signs of tight supply in several product categories. The industrial market is undergoing an ongoing transformation in factory automation, robotics, and power and energy infrastructure, with emerging needs for physical AI. The Cloud AI era is a significant driver, with ST positioned as a core enabler. The company also noted a growing number of non-traditional AI server companies entering the market, including players from solar power and battery storage industries. The Low Earth Orbit satellite communication is identified as a new and significant industry, with the addressable market expected to reach around $3 billion by 2030. Furthermore, the industrialization of silicon-based quantum computers is progressing, with ST investing in Quobly to accelerate this. The automotive semiconductor industry is expected to grow about 13% to 14% year-over-year, while the smartphone market is seeing a decrease on the low end due to memory price impact. | STMicroelectronics anticipates continued growth, with Q3 2026 revenues expected to be $3.7 billion, plus or minus 350 basis points, representing a sequential increase of 6.2% and a year-over-year increase of 16.2%. The gross margin for Q3 is projected to be about 37%, plus or minus 200 basis points. For Q4, revenues are expected to be above $4 billion, with a sequential improvement better than normal seasonality, leading to H2 versus H1 growth above the normal 15% seasonality. The company is raising its revenue ambition for data centers, expecting revenues above $1 billion in 2026 and well above $2 billion in 2027, assuming current dynamics continue. Gross margin is expected to continue improving sequentially in Q4, despite some headwinds from unused capacity charges and manufacturing reshaping program costs. Full-year 2026 non-U.S. GAAP net OpEx is expected to be slightly above $3.8 billion, and 2026 net CapEx is anticipated to be at the high end of the $2 billion to $2.2 billion range. The manufacturing reshaping program is expected to be completed by the end of 2027. ST confirms its confidence to reach $18 billion in revenue by 2028. The Crolles factory is expected to reach 15,000 wafers per week and go above to support the dynamic of the AI data center business. The 300-millimeter fab is expected to reach full build-out soon to support microcontroller growth with 19-nanometer and 14-nanometer technology, and the 'China for China' strategy will start to pay back with 14-nanometer technology in China. Silicon carbide revenues are expected to grow double-digit in 2026 versus 2025. | Photonics: | Broader themes emerging include the increasing importance of physical AI, the demand for quantum-ready security solutions, the rise of Low Earth Orbit satellite communication as a significant new industry, and the industrialization of quantum computing. Additionally, there's a trend of non-traditional companies entering the AI server market. | “Our second quarter net revenues of $3.49 billion came in above the midpoint of our business outlook range.” “demand increased further with strong bookings and book-to-bill close to 2 overall.” “We saw improved visibility and signs of tight supply in several product categories.” “Automotive, revenues came in better than expected, increasing 14% sequentially and 16% year-over-year.” “Industrial improved 20% sequentially and 34% year-over-year.” “Therefore, we are raising our revenue ambition for data centers. We now expect revenue above $1 billion in 2026 and assuming the current dynamics continues and with the current engagements we have well above $2 billion in 2027.” “ST growth driver remains solid.” “We confirm our confidence level to reach $18 billion in 2028.” “this business related to AI data center is accretive to our gross margin.” “Low Earth Orbit satellite is contributing, let's say, to the improvement of our gross margin.” “this year, we should grow the silicon carbide revenues double digit in '26 versus '25 based on already design wins and backlog, which is already visible.” | “Q2 gross margin included about 60 basis points of negative impact resulting from nonrecurring cost related to our manufacturing reshaping program.” “The negative impact on gross margin just mentioned, nonrecurring cost is expected to remain at a similar level over the rest of the year.” “Revenue growth for Personal Electronics is expected to be below normal seasonality in Q3, moderating ST sequential growth in the third quarter.” “our level of unloading charges will not change significantly in Q4 due to the fact that we are starting some fab, particularly in China, let's say, which we will still have some negative impact on our, let's say, level of unloading.” “there is also still, let's say, this cost related to the transfer of technology related to our reshaping program in our manufacturing infrastructure that will be still there, similar to the one that we have in the current quarter in Q3.” “this effect [FX benefit] will not be there. It will be neutral.” “we are not in the condition to have our manufacturing infrastructure at the right level of efficiency.” “it will be at the end of 2027, not before.” “some other tightness related to our reshaping but only temporary.” “some pocket of capacity limitation time to time with OSAT, but okay, we manage it.” | The company mentioned that the sequential increase in non-U.S. GAAP net OpEx for Q3 2026 is mainly due to start-up costs and employee share award expenses. For the full year 2026, non-U.S. GAAP net OpEx is expected to be slightly above $3.8 billion, taking into account increased employee share award expenses and the temporary impact of start-up costs. There were no specific mentions of hiring initiatives, workforce expansion or cuts, types of roles being added or reduced, geographic hiring plans, or AI replacing roles. |
| About Expanding Eligible Market | About Competition | About The Broader Industry | Where Things Are Headed | Updates On Theme | Broader Themes Emerging | Bullish-Leaning Quotes (Short) | Bearish-Leaning Quotes (Short) | Hiring |
|---|---|---|---|---|---|---|---|---|
| STMicroelectronics acquired NXP's MEMS sensor business, which is highly complementary and strengthens their automotive sensor business. The company is expanding its presence in the AI data center market, with a multiyear multibillion U.S. dollar commercial engagement with Amazon Web Services for high-performance compute infrastructure. They are also expanding their 800-volt DC AI data center power conversion portfolio in collaboration with NVIDIA. STMicroelectronics has started high-volume production for its silicon photonics-based PIC100 platform for optical interconnects in data centers and AI clusters. The low-earth-orbit satellite business is progressing strongly, with ST selected to develop a power amplifier controller for direct-to-cell satellites and ramping shipments to a second large customer. The company is collaborating with NVIDIA to integrate ST sensors, microcontrollers, and motor control solutions into the NVIDIA Robotics ecosystem for humanoid robots and other physical AI systems. They also announced support for motion sensing and secure wireless technology on Qualcomm Technologies' new Personal AI platform. ST expects 2026 revenues to show double-digit growth beyond its addressable market dynamics and engaged customer programs, driven by new AI programs. | STMicroelectronics was ranked the #1 vendor worldwide for general purpose microcontrollers for the fifth consecutive year based on research by Omdia. The company views its unique position as capable of providing photonic, MEMS, microcontroller, power switch, power driver, controller, and sensor solutions for AI infrastructure as a significant competitive advantage. | Despite macroeconomic uncertainty, STMicroelectronics observed improving demand with strong booking momentum and normalized inventory in distribution during Q1 2026. The book-to-bill ratio was well above 1 across all end markets and regions. The industrial segment's inventories in distribution have also normalized. The broader semiconductor market is experiencing an accelerating global AI super cycle, driving unprecedented demand for leading-edge logic, HBM, advanced packaging, and network infrastructure. | STMicroelectronics expects Q2 2026 revenues to be $3.45 billion, increasing 11.6% sequentially and 24.9% year-over-year at the midpoint. Gross margin is projected to be about 34.8% for Q2 2026, with non-U.S. GAAP gross margin at approximately 35.2%. The company anticipates sequential gross margin improvement throughout Q1, Q2, Q3, and Q4 of 2026. STMicroelectronics confirmed its data center revenue expectation to be nicely above $500 million for 2026 and well above $1 billion for 2027. The company expects 2026 revenues to show double-digit growth, driven by new AI programs. Benefits from the Agrate 300-millimeter fab and the 6-inch to 8-inch silicon carbide transition are expected more towards the end of 2027 and into 2028 due to customer qualification times. Production at the Sanan JV is expected to start ramping up by the end of 2026. STMicroelectronics aims to fulfill as much of the unconstrained demand from customers for AI data centers as possible, expecting 2026 to be a significant breakthrough year for AI data center revenue. The company remains on track to become carbon neutral by 2027 on Scopes 1 and 2, and for product transportation, business travel, and employee commuting for Scope 3, targeting 100% renewable electricity by 2027. | Silicon | Physical AI systems, industrial transformation trends. | “strong booking momentum during Q1 with book-to-bill well above 1 across all end markets and regions.” “We are also proud to have been ranked the #1 vendor worldwide for general purpose microcontrollers for the fifth consecutive year based on research by Omdia.” “We confirm our data centers revenue expectation to be nicely above USD 500 million for 2026 and well above $1 billion for 2027.” “2026 will show a significant breakthrough in our revenue linked to AI data center.” “We have a clear path to improve gross margin while staying at the forefront of innovation.” | “Automotive, during the quarter, revenue declined 10% sequentially.” “Personal Electronics, first quarter revenues were down 14% sequentially, reflecting the seasonality of our engaged customer programs.” “Q1 gross margin included about 50 basis points of negative impact resulting from a nonrecurring cost related to our manufacturing reshaping programs.” “The only negative aspect of the revenue in '26 is capacity reservation fees that will decrease, okay, $140 million compared last year.” “The limitation is more related to the qualification time of our customer.” |
Upcoming Events
| Catalyst ID | Estimated Timing | Estimated Date Start | Estimated Date End | Catalyst | Why It Matters | Ticker Or Theme Specific | Transcript Date | Source Type |
|---|---|---|---|---|---|---|---|---|
| STM_292afd28 | 2026 revenues | 2026-01-01 | 2026-12-31 | STMicroelectronics' actual full-year 2026 revenue growth. | Achieving double-digit growth would confirm the company's strong performance driven by new AI programs and engaged customer programs, positively impacting valuation and sentiment. | Ticker | 2026-04-23 | earnings_transcript |
| STM_c2f07561 | for 2026 | 2026-01-01 | 2026-12-31 | STMicroelectronics' ability to achieve 'nicely above USD 500 million' in AI data center revenue for 2026. | Achieving or exceeding this target, especially by successfully ramping capacity to meet unconstrained demand, would strongly validate the company's AI strategy and significantly boost revenue, valuation, and investor sentiment. | Ticker | 2026-04-23 | earnings_transcript |
| STM_a555c4a7 | well above $1 billion for 2027 | 2027-01-01 | 2027-12-31 | STMicroelectronics' ability to achieve 'well above $1 billion' in AI data center revenue for 2027. | Achieving or exceeding this target, especially by successfully ramping capacity to meet unconstrained demand, would strongly validate the company's AI strategy and significantly boost revenue, valuation, and investor sentiment. | Ticker | 2026-04-23 | earnings_transcript |
| STM_dccc259a | over the period '26 to '28 | 2026-01-01 | 2028-12-31 | STMicroelectronics' progress towards achieving 'well above $3 billion cumulative revenues' from Low-Earth-Orbit (LEO) satellites over the 2026-2028 period. | Successful execution of this ambition would represent a significant new revenue stream and diversify the company's business, positively impacting long-term valuation and investor confidence. | Ticker | 2026-04-23 | earnings_transcript |
| STM_cf59c210 | progressively improvement in Q3 and Q4 and then, of course, in 2027. | 2026-07-01 | 2027-12-31 | STMicroelectronics' ability to achieve progressive sequential gross margin improvement through Q3, Q4 2026, and into 2027. | Consistent gross margin expansion would demonstrate successful execution of manufacturing reshaping, improved utilization, and favorable product mix, positively impacting profitability and valuation. | Ticker | 2026-04-23 | earnings_transcript |
| STM_07615dd3 | end of '27 and entering in '28 | 2027-10-01 | 2028-12-31 | Realization of full benefits from the Agrate 300mm fab and the transition to 8-inch silicon carbide production as part of the manufacturing reshaping program. | These programs are crucial for long-term capacity expansion, manufacturing efficiency, and gross margin improvement, significantly impacting the company's competitive position and profitability. | Ticker | 2026-04-23 | earnings_transcript |
| STM_7998986f | starting the end of 2026 | 2026-10-01 | 2026-12-31 | Start of production and loading of the Sanan silicon carbide manufacturing facility in China. | This marks a significant step in STMicroelectronics' China for China supply chain strategy and expands its silicon carbide production capacity, supporting future revenue growth in the automotive and industrial sectors. | Ticker | 2026-04-23 | earnings_transcript |
| STM_06f7c620 | this one to accelerate | 2026-07-09 | 2027-12-31 | Acceleration of growth in the acquired NXP MEMS sensor business beyond its historical low single-digit rate. | Faster growth from the acquired business would enhance STMicroelectronics' automotive sensor portfolio and contribute positively to overall revenue and market share in this segment. | Ticker | 2026-04-23 | earnings_transcript |
| STM_51622d32 | second half of the year | 2026-07-01 | 2026-12-31 | Successful ramp-up of capacity for AI data center products to meet unconstrained customer demand. | The ability to quickly expand capacity is essential for STMicroelectronics to capture the significant upside from new AI-driven programs and achieve its revenue targets for data centers, directly impacting revenue and market share. | Ticker | 2026-04-23 | earnings_transcript |