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STMicroelectronics Falls as Third-Quarter Outlook Misses Estimates

1 reports · First detected 2026-07-23 · Last active 2026-07-23

STMicroelectronics supplies chips for cars, industrial equipment, smartphones and data-centre applications. The Franco-Italian group has been navigating a prolonged downturn in its core automotive and industrial markets, making newer businesses tied to AI data centres and low-Earth-orbit satellite communications increasingly important to its recovery. The results are a test of whether infrastructure demand linked to the AI investment boom can offset lingering cyclical weakness in the company’s traditional end markets.

On July 23, STMicroelectronics reported second-quarter revenue of $3.49 billion, but EBITDA of $679 million missed the $797.7 million average estimate. It guided third-quarter revenue to $3.70 billion, plus or minus 3.5%, just below the $3.72 billion analyst consensus compiled by LSEG, sending the shares down 14% in early trading. Chief Executive Jean-Marc Chery nevertheless said fourth-quarter revenue should exceed $4 billion, helped by AI data-centre and low-Earth-orbit satellite programmes.

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1 original reports
FT.COM 2026-07-23
STMicroelectronics hit by doubts over AI spending boom

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The history behind this event
STMicroelectronics Raises Outlook on Strong AI Infrastructure Demand, Lifting Chip Stocks2026-06-03 · 1 reports · similarity 0.81

STMicroelectronics, a global leader in silicon carbide (SiC) power semiconductors and a supplier to Apple and Tesla, has expanded into data-center power chips and optical cables in recent years as electric-vehicle market growth stalled. The company is seeking new momentum from AI infrastructure spending, making its upgraded target an important sign of traditional chipmakers' pivot toward the AI market.

STMicroelectronics said on June 2, 2026, that it expects data-center revenue to reach $1 billion in 2026, up from its previous target of well above $500 million, and potentially double again in 2027. Its U.S.-listed shares surged 15.20% that day to close at $79.51, while Infineon gained more than 9% and ASML nearly 5%. Jefferies estimates that STMicroelectronics' total revenue will grow 20.5% in 2027.

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