STMicro's 2027 AI revenue to be four-fifths optics, CFO says

STMicroelectronics CFO Lorenzo Grandi revealed on Wednesday that approximately 80% of the company's projected $2 billion AI data centre revenue for 2027 will stem from chips utilized in fibre-optic data links. The remaining 20% is anticipated to be derived from chips employed in cooling systems and power conversion within servers, according to Grandi's remarks at Citi's Global TMT Conference in New York.

He emphasized that initial traction will likely come from the connectivity segment. Grandi also clarified that STMicro's current footprint in server power is minimal, and the company does not anticipate significant revenue from this area until after 2028. These remarks underscore that, for the time being, STMicro's AI business is primarily focused on connectivity chips, while the larger opportunity in server power is expected to unfold only post-2028.