Deutsche Bank raises STMicroelectronics price target amid AI-driven data center growth

Deutsche Bank upgraded STMicroelectronics to a "Buy" rating and raised its price target to EUR 75 from EUR 52, reflecting strong confidence in the company's growth prospects. STMicroelectronics significantly increased its 2026 data center revenue forecast to $1 billion, driven by rising demand for AI infrastructure. The company reported 41% revenue growth in Q1 from communication equipment linked to AI data centers and partnerships with AWS and NVIDIA. To meet future demand, STMicroelectronics is considering expanding its Crolles facility in France, with a decision expected by the end of 2026.