STMicroelectronics traditionally receives a high amount of orders from AI data centres and Low-earth orbit satellite communication.
STMicroelectronics reported a third-quarter operating profit above the market forecasts, with demand from AI data centres and satellite operators contributing to broader recovery in the market. Operating income, deducting one-off charges, nearly doubled the previous year figure, reaching $429 million, beating the expectations from a LSEG survey.
The Franco-Italian chipmaker expects the fourth quarter revenue to reach $4.15 billion. In the earning statement, CEO Jean-Marc Chery said that demand remains well above supply. Higher sales communication equipment, computer peripherals, and personal electronics resulted in better figures.
The company traditionally receives a high amount of orders from AI data centres and Low-earth orbit satellite communication. Gross margin in the fourth quarter is to rise by 39 per cent according to company expectations, which rose by 37.3 per cent in the third quarter due to sales of profitable chips and reduced costs from idle factory capacity.
