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

July 23 : 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 per cent 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.STMicro forecast third-quarter revenue of $3.70 billion, plus or minus 3.5 per cent, 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