STMicro raises data-centre expectations after profit miss, shares tank

STMicroelectronics said it expects data-centre demand to boost revenue towards the end of the year, after reporting second-quarter core profit and a third-quarter sales forecast that missed expectations on Thursday.

The shares fell 14% in early trade.

The Franco-Italian chipmaker, whose chips are used in cars, industrials and smartphones, has been trying to recover from a prolonged ‌downturn in demand ⁠across ⁠its main markets, while looking to faster-growing areas such as AI-related data centres and satellite communications for growth.