STMicroelectronics (NYSE: STM) announced it is increasing its revenue expectations for data centers to approximately $1 billion in 2026, up from a previous target of "nicely above $500 million."

The semiconductor company cited continued strong demand for AI infrastructure and progress in capacity ramp-up as reasons for the revision. The Geneva-based company also indicated that revenues could double in 2027, compared to its earlier projection of "well above $1 billion."

The updated guidance assumes current market dynamics continue and is based on existing customer engagements, according to the company's statement released on June 2.

STMicroelectronics describes itself as serving customers across electronics applications and operates as an integrated device manufacturer with state-of-the-art manufacturing facilities. The company works with more than 200,000 customers and thousands of partners.

The revenue projections are forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The company cited factors including changes in global trade policies, macro-economic trends, customer demand variations, and technological environment changes as potential risks.

The information was disclosed in a press release statement from the company.