STMicroelectronics raised the revenue target for its data centre business on Tuesday, ​citing continued strong demand tied ​to AI infrastructure and progress in ⁠expanding capacity.

The Franco-Italian chipmaker now ​expects data centre revenue of about $1 ​billion in 2026, compared with its previous forecast for revenue “nicely above” $500 million.

“Assuming the ​current dynamic continues and with ​the current engagements we have, revenues could double ‌in ⁠2027,” STMicro said in a statement. It had previously targeted revenue “well above $1 billion” for next year.

STMicro’s ​data centre ​exposure ⁠is focused less on the graphics processors that train ​AI models and more on ​the ⁠surrounding infrastructure needed to power and manage them.

It said the higher ⁠revenue ​target also reflected ​progress in factory ramping capacity.