STM
Not your average chip stock
Nvidia may be the face of the AI boom, but STMicroelectronics is doing the underrated-side-character thing and stealing scenes anyway. Shares of STM have surged about 190% year-to-date, helped by a fresh upgrade to its data-center revenue outlook and a growing sense that the AI buildout is way bigger than just accelerators.
The numbers got juicier
This week, STMicro said it now expects data-center revenue to hit roughly $1 billion this year, up from a previous forecast of a little more than $500 million. That’s not a tweak. That’s the company basically saying, “Yeah, the AI wave is still very real, and our slice of it just got a lot bigger.”
For investors, the takeaway is simple:
- AI demand is spilling beyond the obvious names like Nvidia
- Broadcom and other infrastructure suppliers are also part of the trade
- STMicro is suddenly looking like a meaningful pick-and-shovel play in the data-center buildout
And then there’s the SpaceX seasoning
The other reason STM keeps popping up on traders’ screens? Its long-running ties to Starlink. The company says it has shipped billions of radio-frequency antenna chips used in SpaceX’s satellite internet network, and its engineers reportedly work with Starlink on custom designs for satellites, gateways, and user terminals.
That gives STM a rare combo plate: AI infrastructure plus space connectivity. Not many public chip companies can say they’re playing in both sandboxes at once.
Big picture
You don’t need to believe STM will stay up 190% forever to see the point: investors are hunting for the less obvious beneficiaries of the AI spend-a-thon, and STMicroelectronics just got a louder megaphone. Nvidia may still be the main character, but STM is proving there’s room for a surprisingly crowded cast.