STMicroelectronics (NYSE:STM) reported first-quarter results above expectations on Thursday, supported by solid demand across personal electronics, computing devices, peripherals, and the ongoing expansion of AI infrastructure.
The semiconductor group posted revenue of $3.10 billion, marking a 23% increase year-on-year and exceeding both its own guidance of about $3.04 billion and analyst forecasts of $3.06 billion.
Net income came in at $37 million, compared with $56 million in the same period last year. Gross profit rose to $1.05 billion from $841 million, resulting in a gross margin of 33.8%.
Operating income reached $171 million, slightly ahead of analyst expectations of $165.8 million.
“In Q1, despite the macroeconomic uncertainty, we saw improving demand with strong booking and normalized inventory in distribution,” CEO Jean-Marc Chery said in a statement.
Looking forward, the company expects second-quarter revenue of around $3.45 billion, up from $2.77 billion a year earlier, with gross margin seen increasing to 34.8% from 33.5%.
Chery added that STMicroelectronics is well positioned to benefit from rising demand tied to artificial intelligence, forecasting data-center AI revenues to exceed $500 million this year and to go beyond $1 billion by 2027.
“ST is now strategically positioned to capture upside from new AI driven programs, leveraging specialized technologies to enable the evolving AI infrastructure,” he said.