On July 23 (Thursday), STMicroelectronics (STM.N) revealed that, propelled by the escalating demand from artificial intelligence (AI) data centers, its revenue for the current quarter is projected to climb. The company forecasts that its revenue in the third quarter will reach approximately $3.7 billion, marking a 6.2% year-on-year increase. This figure falls just short of the average analyst expectation of $3.79 billion. The gross margin for the quarter is anticipated to hover around 37%, surpassing analysts' expectations of 36.76%.

As the construction of AI infrastructure progresses unabated, the demand for a diverse range of chips from data centers continues to surge. From NVIDIA's (NVDA.O) high-end GPUs to STMicroelectronics' power management and connectivity semiconductor products, all are enjoying market favor. This trend has significantly propelled the business of this Franco-Italian chipmaker forward.

CEO Jean-Marc Chery has been steadfast in his commitment to expanding the company's business into high-growth areas beyond the traditional realms of consumer electronics and the automotive industry. STMicroelectronics expects its revenue from AI data centers to exceed $1 billion by 2026 and surpass the $2 billion mark by 2027, aligning with its previous projections.