STMicroelectronics reported robust business conditions at Citi’s 2026 Global TMT Conference on September 9th. Management stated that demand currently outpaces supply across all major end markets. Book-to-bill ratios remain well above 1.0x, while industrial products face extended lead times.
The company raised its 2026 AI data center revenue outlook to exceed $1 billion. Management expects significantly higher revenue from this segment in 2027. The firm maintains a strong market position in connectivity, power, and thermal management for advanced data centers.
A manufacturing reshaping plan aims to improve gross margins by over 400 basis points. Management expects pricing to remain flat or trend slightly higher. This pricing trend deviates from historical semiconductor cycles.