STMicroelectronics (STM, Financial), a leading European chipmaker, announced a revised forecast for its future revenue targets. The company now expects its sales to exceed $20 billion by 2030, a delay from its earlier goal due to ongoing challenges with chip inventory surpluses that have impacted industry growth.
The company projects its sales to reach approximately $18 billion in 2027 and 2028, with a climb to over $20 billion by 2030. Previously, STMicroelectronics aimed to achieve the $20 billion milestone between 2025 and 2027.
In terms of profitability, STMicroelectronics anticipates its gross margin to be around 44% to 46% in 2027 and 2028, with an increase to approximately 50% by 2030. This is a revision from the earlier forecast which expected gross margins to surpass 50% between 2025 and 2027.
The adjustments come as the semiconductor industry continues to grapple with volatile order patterns. While demand for chips powering artificial intelligence in data centers is booming, orders for chips used in electric vehicles, industrial machinery, and some consumer electronics have been weak in recent months.
