STMicroelectronics shares jumped as much as 10% in Paris. The stock reached its highest price level since September 2000.
The European chipmaker raised its data-center revenue forecast to approximately $1 billion. This target is set for 2026. The new figure nearly doubles the previous estimate of more than $500 million.
Management indicated that revenue from the segment could potentially double again in 2027. A multi-year agreement with Amazon Web Services supports the optimistic outlook.
Strong demand for artificial intelligence infrastructure remains the primary driver for the revised projections. The company is also expanding manufacturing capacity to support this growth.