STMicroelectronics Falls 15% on Q2 Profit Miss; Data Center Revenue Forecast to Exceed $1B in 2026

According to Google Finance and company statements, STMicroelectronics shares fell 15% to €49.47 on July 23 after the chipmaker reported second-quarter earnings before interest, taxes and depreciation of $679 million, significantly below the $797.7 million expected by analysts. The shortfall stemmed from impairment charges, restructuring costs, and accounting effects tied to the company's NXP sensor business acquisition. Third-quarter revenue guidance of approximately $3.70 billion also came in slightly below analyst expectations of $3.72 billion.

However, STMicroelectronics raised its data center revenue forecast, expecting it to exceed $1 billion in 2026 and well above $2 billion in 2027, with CEO Jean-Marc Chery citing increased demand and strong bookings across all end markets. Management projects fourth-quarter revenue above $4 billion, driven primarily by artificial intelligence data center and satellite communications customer programs.