STMicroelectronics Secures Multi-Billion AI Deal with AWS, Drives Pre-Market Surge

STMicroelectronics (STM-US) posted a pre-market rally as it confirmed a multi-billion-dollar, multi-year agreement with Amazon.com's AWS, marking its entry into AI infrastructure. The company's Milan-listed shares climbed 5.5% in European pre-market trading, with the STM-US ADR up 6.06% to $31.66 per share. Under the agreement, STMicro will supply AWS data center semiconductor technology and products, and AWS will have an option to purchase up to 2.7% of STMicro's shares, exercisable in tranches over seven years, with an initial strike price of $28.38 per share. The company's shares closed at $29.85 on Friday. The deal comes as major tech firms plan $670 billion in AI infrastructure investments this year. STMicro, which has broadened its footprint into data center and AI-connected applications, is expected to benefit from AWS's expanding AI spending, offsetting weakness in automotive semiconductors that prompted the company to下调 guidance and裁员 earlier this month.