July 23 (Reuters) – 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.
(Reporting by Nathan Vifflin in Gdansk, editing by Milla Nissi-Prussak)
