This SpaceX Supplier Is an AI Winner on Rising Demand for Data Centers and Satellites -- Barrons.com

By Ty Roush

STMicroelectronics is counting on booming demand for artificial-intelligence data centers and satellite communications to accelerate its growth. The European chip maker and key SpaceX supplier forecast a sharp increase in revenue on Thursday.

The Swiss-based company posted third-quarter adjusted earnings of 37 cents a share, below Wall Street's consensus of 38 cents, according to FactSet. Revenue grew 18% year over year to $3.75 billion, above analyst calls for $3.71 billion.

Fourth-quarter revenue is expected to hit $4.15 billion, representing nearly 25% growth from a year earlier. CEO Jean-Marc Chery said the company's outlook was supported by a broader recovery in semiconductor demand, as well as growth opportunities in AI data centers and low-Earth-orbit satellite communications.

Shares of STMicroelectronics fell 1.5% to $47.48 in premarket trading Thursday. The stock has surged 77% this year.

Its business supplying chips for communications technology was a standout in the third quarter, with revenue surging 46% year over year to $504 million. Operating profit more than doubled to $132 million, while its operating margin expanded to 26.2% from 16.6%.

STMicroelectronics' gross margin increased to 37.3% from 33.2% a year earlier. The company expects that figure to climb to about 39% in the fourth quarter, benefiting from improved manufacturing efficiency and a more profitable mix of products.

For the full year, STMicroelectronics expects revenue of about $14.5 billion, representing roughly 23% growth from 2025. Its gross margin is projected to reach 36.4%, up from 33.9%.

Chery said in an earnings release that demand has continued to exceed STMicroelectronics' supply, prompting the company to expand manufacturing capacity.

STMicroelectronics has collaborated with SpaceX since 2015, supplying more than 5 billion chips for Starlink satellite terminals over the past decade. The company also is known for producing semiconductors used in cars, but it has emerged as another beneficiary of the AI buildout through its chips for power management and optical communications in data centers.

Apple is also a customer, accounting for roughly 18% of STMicroelectronics' revenue in 2025, up from 14.5% the previous year, according to the company's annual filing.

Write to Ty Roush at tyler.roush@barrons.com

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October 29, 2026 08:43 ET (12:43 GMT)