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

On September 9, STMicroelectronics CFO Lorenzo Grandi revealed that approximately 80% of the company's projected $2 billion AI data-center revenue by 2027 will stem from chips utilized in fiber-optic data links. The remaining 20% will originate from chips employed in cooling systems and power conversion within servers, Grandi stated during his appearance at Citi's Global TMT Conference in New York.

Grandi emphasized that short-term growth will primarily be fueled by the connectivity segment. He further noted that ST Microelectronics' footprint in server power is presently minimal and anticipates meaningful revenue from this area only after 2028. These remarks underscore that, for the time being, ST Microelectronics' AI business is predominantly centered around connectivity chips, with a larger market opportunity in server power anticipated to materialize only after 2028.