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STMicroelectronics forecasts silicon carbide revenue recovery and $500 million AI infrastructure revenue by 2026
Thursday, January 29, 2026 at 10:37 AM
STMicroelectronics reported quarterly revenue of $3.3 billion, representing a 4.5% sequential increase. The company expects its silicon carbide (SiC) revenue to return to growth in 2026 and reach 2024 levels by 2027. Additionally, the company projects $500 million in revenue from data center and AI infrastructure sectors by 2026 as automotive and industrial segments continue their recovery.
Context
STMicroelectronics reported a quarterly revenue increase of 4.5% to $3.3 billion, signaling a stabilization in the semiconductor cycle with marginal 0.2% year-over-year growth. The company’s core automotive and industrial segments have now posted three consecutive quarters of expansion after bottoming in the first quarter of 2025. This recovery marks a critical pivot point for investors as the multi-year inventory correction phase finally concludes across major European and global markets.
Looking ahead, management expects the silicon carbide (SiC) business to return to growth in 2026, with a full recovery to 2024 revenue levels expected by 2027. A significant new catalyst for the stock is the rapid expansion into AI infrastructure, where STMicroelectronics now projects $500 million in data center and AI-related revenue by 2026. By leveraging its power management expertise for high-performance computing, the firm is successfully positioning itself to capture value beyond its traditional electric vehicle dominance.
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