stm finds growth thanks to the push of the'artificial intelligence, but the market does not reward the results and triggers sales on the titleAfter a period of pressure on the chip market, the Italian-French company recovers ground and closes the second quarter with a net profit of 222 million of dollars and revenues up 26%.
The bet on AI remains the main driver of future growth, with STM ready to accelerate its focus on data centers and new digital infrastructure, supported by growing demand for semiconductors. perspectives long-term, therefore, they remain solid, but investors are looking at the indications for the next few months and judge the guidance to be less brilliant than expected: Business Square the stock loses more than 14%.
STM returns to profit in the second quarter: revenues of $3,49 billion
in this first six months of the year Stm recorded revenues for $6,58 billion, up from $5,28 billion in the first half of 2025. The recovery in demand involved various segments of the group, from semiconductors for the automotive sector to new applications related to artificial intelligence.
Just in second quarter i revenues rose to 3,49 billion of dollars, up 26% from 2,77 billion in the same period of the previous year and 12,7% compared to the first quarter of 2026. The result was slightly above management's guidance, which had expected quarterly revenue of around 3,45 billion dollars.
Profitability also improved: in the quarter the gross margin rose to 34,8%, compared to 33,5% in the second quarter of 2025, while the Net income returned to profit with $222 million, compared to a loss of $97 million in the same period the previous year. The improvement reflects improved operating efficiency, stronger margins, and the contribution of higher-growth segments.
The recovery is mainly supported by the boom in investments in artificial intelligenceThe global expansion of AI data centers is increasing demand for semiconductors not only for data processing but also for power management and connectivity systems, two areas where STM aims to strengthen its presence.
AI drives STM: revenues over $1 billion in 2026 and more than $2 billion in 2027
The company led by the president and CEO Jean-Marc Chery is now aiming to accelerate its growth in the artificial intelligence market, revising its forecasts upwards. STM estimates AI-related revenues exceeding $1 billion of dollars in 2026 e over 2 billion in 2027.
"We are raising our data center revenue ambition," Chery explained, emphasizing the contribution of demand and existing customer commitments. According to the manager, demand increased further in the quarter, with strong orders in all end markets and greater visibility on future perspectives.
For third quarter the group foresees a turnover around $3,7 billion, up 6,2% from the previous quarter and 16,1% year-on-year. gross margin is expected to be around 37%, while the strongest acceleration is expected in the final part of the year, with quarterly revenues over 4 billion thanks to programs already underway in AI data centers and satellite communications.
Why is STM stock falling on the stock market?
Despite the return to profit and the strong increase in revenues, the market reacted negatively to STM's accounts because investors expected even stronger indications of recovery. The main factor weighing on the company is its third-quarter guidance, which is considered conservative compared to expectations: revenues of $3,7 billion are expected to grow, but slightly below analysts' most optimistic estimates, while the gross margin of 34,8% in the second quarter was below market consensus. Furthermore, according to analysts, the stock had already incorporated much of the positive expectations related to artificial intelligence after the strong rally in recent months. The new acceleration expected in the fourth quarter was therefore not enough to offset the disappointment investors in the short term. On the Milan Stock Exchange, the stock has lost more than 16%, despite maintaining a gain of approximately 111% since the beginning of the year.
