STMicroelectronics lands multi-billion dollar AWS deal to power AI data centers

Amazon Deepens Ties With Chipmaker STMicro for Data Centers

Amazon.com Inc.'s cloud service AWS is deepening its ties with Franco-Italian chipmaker STMicroelectronics NV to secure semiconductor technologies for its data centers. STMicro will supply various semiconductors to AWS, including chips to support high-bandwidth connectivity and for energy-efficient power management required for hyperscale data center operations, STMicro said in a statementBloomberg Terminal on Monday. Under the agreement, AWS received warrants to acquire as many as 24.8 million ordinary STMicro shares. The warrants will vest in tranches over time, tied to payments for STMicro's products. AWS can chose to exercise the warrants in one or more transactions over a seven-year period at an initial exercise price of $28.38. For AWS, it is at least its secondBloomberg Terminal investment in a chip company. STMicro shares rose 6.5% at market open to $26.51. The global build-out of data centers to support artificial intelligence technologies is driving new business for semiconductor companies. Designers and manufacturers of advanced AI chips -- including Nvidia Corp., Advanced Micro Devices Inc. and Taiwan Semiconductor Manufacturing Co. Ltd. -- have been at the forefront of the boom. Makers of more mature analog chips have also seen rising demand for applications in AI data centers, including power management, sensors and cooling. German Infineon Technologies AG predicted €2.5 billion ($3 billion) in AI-related revenue in its 2027 fiscal year, it said last week - a tenfold increase in AI sales within three years. STMicro, which is also a supplier for Tesla Inc. and Apple Inc., forecast first-quarter revenue two weeks ago that beat analysts' estimates. Demand from consumer electronics customers showed signs of recovery at the end of last year after a prolonged demand slump. However, the company's shares fellBloomberg Terminal after the chipmaker's report showed uneven recovery across different end markets. STMicro Chief Executive Officer Jean-Marc Chery said the automotive market is "not yet stable" in a call with analysts.

Why Is STMicroelectronics Stock Surging Monday? - STMicroelectronics (NYSE:STM)

STMicroelectronics Lands Multibillion Dollar AWS Deal To Power Next-Gen AI Data Centers STMicroelectronics N.V. (NYSE:STM) stock rose in premarket trading Monday after the chipmaker announced an expanded strategic partnership with Amazon Web Services, the cloud arm of Amazon.com Inc. (NASDAQ:AMZN), under a multi-year, multi-billion-dollar commercial agreement. STMicroelectronics said it is expanding its strategic engagement with Amazon Web Services to support the development of next-generation, high-performance compute infrastructure, strengthening capabilities for cloud and AI data centers. Details As per the deal, STM has issued warrants to AWS for the acquisition of up to 24.8 million ordinary shares. The warrants will vest in tranches over the term of the agreement, with vesting tied to payments for STM products and services purchased by AWS and its affiliates. AWS may exercise these warrants over a seven-year period at an initial exercise price of $28.38. This deal positions STM as a key supplier of semiconductor technologies that AWS will integrate into its compute infrastructure. This collaboration aims to enhance AWS's ability to provide high-performance compute instances, reduce operational costs, and scale compute-intensive workloads more effectively. Why This Partnership Signals Industry Disruption The engagement covers a broad range of semiconductor solutions leveraging STM's proprietary technologies. These include high-bandwidth connectivity, advanced microcontrollers, and analog and power ICs essential for hyperscale data center operations. STM's technologies will help AWS address the increasing demands for compute performance, efficiency, and data throughput needed to support growing AI and cloud workloads. The collaboration will also focus on optimizing electronic design automation (EDA) workloads in the cloud. STM's Mixed Fourth-Quarter Results Net revenues of $3.329 billion edging past the analyst consensus estimate of $3.298 billion, while adjusted EPS of 11 cents decisively trailed the consensus estimate of 25 cents. Looking ahead, STMicroelectronics projected its fiscal first-quarter net revenues to be $3.04 billion at the midpoint, representing a sequential decrease of 8.7% (with a potential variance of plus or minus 350 bps). This guidance fell above the analyst consensus estimate of $3.00 billion. Price Action: STMicroelectronics shares were up 4.22% at $31.11 during premarket trading on Monday, according to Benzinga Pro data. Amazon.com shares were up 0.42% at $211.20. Photo by Michael Vi via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

STMicroelectronics Taps AWS to Power New High-Performance AI Data Centers

STMicroelectronics today announced an expanded strategic collaboration with Amazon Web Services (AWS) through a multi-year, multi-billion USD commercial engagement serving several product categories. The collaboration establishes ST as a strategic supplier of advanced semiconductor technologies and products that AWS integrates into its compute infrastructure, enabling AWS to provide customers with new high performance compute instances, reduced operational costs, and the ability to scale compute-intensive workloads more effectively. Commercial Agreement This engagement covers a broad range of semiconductor solutions leveraging ST's portfolio of proprietary technologies. ST will supply specialized capabilities across high-bandwidth connectivity, including high-performance mixed-signal processing, advanced microcontrollers for intelligent infrastructure management, as well as analog and power ICs that deliver the energy efficiency required for hyperscale data center operations. The collaboration will help customers reduce total cost of ownership and bring products to market faster. ST's specialized technologies help AWS address the increasing demands for compute performance, efficiency, and data throughput required to support growing AI and cloud workloads. Jean-Marc Chery, ST President & CEO, commented: "This strategic engagement establishes ST as an important supplier to AWS and validates the strength of our innovation, proprietary technology portfolio, and proven manufacturing-at-scale capabilities. Our advanced semiconductor solutions will directly power AWS's next-generation infrastructure, enabling their customers to push the boundaries of AI, high-performance computing, and digital connectivity. This collaboration positions us ideally for further scale-up across multiple market segments, from data center infrastructure to AI connectivity, positioning ST at the center of the AI revolution." As part of this expanded relationship, ST will work with AWS to optimize electronic design automation (EDA) workloads in the cloud. AWS's scalable compute power enables silicon design acceleration, parallelizes design tasks, and gives engineering teams the flexibility to handle dynamic compute demands and speed products to market. ST has issued warrants to AWS for the acquisition of up to 24.8 million ordinary shares of ST. The warrants will vest in tranches over the term of the agreement, with vesting substantially tied to payments for ST products and services purchased by AWS and its affiliates. AWS may exercise the warrants in one or more transactions over a seven-year period from the issue date at an initial exercise price of $28.38. At ST, we are 48,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (ou

STMicroelectronics Expands Collaboration With Amazon Web Services

STMicroelectronics expanded its collaboration with Amazon Web Services to enable compute infrastructure for artificial intelligence and cloud data centers. The Paris-listed semiconductor manufacturer said the multi-year, multi-billion U.S. dollar commercial engagement would establish it as a supplier of advanced semiconductor products that would allow Amazon Web Services to offer its customers new compute instances--a virtualized computing resource offered by a cloud service provider to run applications and workloads--, lower operating costs and more effectively scaled compute-centric workloads. STMicroelectronics said it would supply Amazon Web Services with capabilities including mixed-signal processing, and analog- and power-integrated circuits that provide the energy efficiency needed to operate hyperscale data centers. The company issued warrants to Amazon Web Services for the acquisition of up to 24.8 million ordinary shares of STMicroelectronics, it said. It added that the warrants would vest in tranches over the term of the agreement, with vesting tied to payments for its products and services, and Amazon Web Services able to exercise the warrants over a seven-year period from the issue date at an initial exercise price of $28.38.