SpaceX Supplier STMicroelectronics Forecasts Strong Sales on AI, Satellite Boost
By Mauro Orru
STMicroelectronics projected robust sales growth for the year as the buildout of data centers and the deployment of satellites fuel demand for semiconductors.
The European chip maker, which counts Apple and Elon Musk's Tesla and SpaceX among its clients, said revenue this year should grow nearly 23% to roughly $14.5 billion. Meanwhile, its gross margin--a closely watched measure of pricing power--should increase to about 36.4% from 33.9% last year.
Chief Executive Jean-Marc Chery singled out data centers and satellites as key drivers for growth this year.
Sales for the quarter that closed Sept. 26 grew nearly 18% on year to $3.76 billion, above company guidance of about $3.70 billion and analysts' forecast of $3.73 billion, according to Visible Alpha.
The group posted a net profit of $291 million compared with $237 million a year earlier. Its gross profit increased to $1.40 billion from $1.06 billion, generating a 37.3% gross margin. Analysts had forecast $343 million in net profit and $1.38 billion in gross profit, according to Visible Alpha.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
October 29, 2026 02:45 ET (06:45 GMT)
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