Chip companies Texas Instruments (TI) and STMicroelectronics are raising prices and chasing a larger slice of the data centre market to keep pace with high revenue expectations, but analysts aren’t convinced.
The two manufacturers saw stock prices slip after reporting earnings this week, despite raising their respective outlooks for data centre-related revenue and altering their pricing strategies.
After teasing price increases last quarter, TI CEO Haviv Ilan said it was moving forward with them on a customer-by-customer basis: “Some of it will start to play in Q3, but I expect that to continue into the fourth quarter.”
Similarly, STMicro CFO Lorenzo Grandi said the European manufacturer is upping prices on “selected products” to offset the increased costs of materials in its supply chain and continue growing as it closes the supply-demand gap for its data centre business.
