STMicro's Q3 revenue view slightly lags estimates even as chip demand recovers

STMicroelectronics forecast a third-quarter revenue with a midpoint slightly below market expectations on Thursday, but said chip demand from automotive, AI-related, data-centre optical and consumer electronics markets was recovering.

The Franco-Italian chipmaker ‌forecast third-quarter ⁠revenue ⁠of $3.70 billion, plus or minus 3.5%, compared with ​analysts' average estimate of $3.72 billion, according to LSEG data.

"During ​the quarter demand increased further, with strong bookings in all end markets. We saw ​improved visibility and signs of ⁠tight supply ‌in several product categories," STMicro ​CEO ​Jean-Marc Chery said in a statement.


"We ⁠anticipate a revenue growth acceleration in ​Q4, mainly driven by our engaged ​customer programs in AI datacenters and LEO satellite communication. We expect Q4 revenues to be above $4 billion," he added.

STMicro, whose chips are used in electric vehicles, industrial ‌equipment, smartphones and data-centre applications, has been seeking to recover from a ​prolonged downturn ​in demand ⁠across its automotive and industrial markets.

The company reported second-quarter revenue of $3.49 billion, ahead of analysts' average ​estimate of $3.39 billion, according to LSEG data.

However, its earnings before interest, taxes, depreciation and amortization were $679 million, well below market expectations of $797.7 million.