STMicroelectronics shares rise 7.27% premarket after expanding AWS deal with multi-billion-dollar contract and 24.8M share warrants.

STMicroelectronics surged 7.27% in premarket trading following a multibillion-dollar partnership expansion with Amazon Web Services (AWS). The deal, which includes a warrant allowing AWS to purchase up to 24.8 million ST shares at $28.38 per share over seven years, positions ST as a key semiconductor supplier for AWS data centers and AI infrastructure. The collaboration, announced as part of a broader $670 billion industry push for AI infrastructure, highlights ST’s strategic pivot into high-growth segments like cloud computing and edge AI. The partnership aligns with rising demand for specialized computing solutions, validating ST’s innovation and manufacturing capabilities. Pre-existing guidance for data center revenue growth from $350 million in 2025 to $500 million in 2026 further reinforced investor optimism. While a new automotive MCU with embedded AI and other product launches were also reported, the AWS deal remains the primary catalyst for the sharp premarket rally.