MW STMicro shares boom on multiyear, mult-billion dollar deal with Amazon Web Services

By Jules Rimmer

AWS has option to buy up to 24.8 million of STMicro's shares

STMicro shares jumped around 8% in Monday trading, making it the best performer on European indexes.

STMicroelectronics, the French-Italian semiconductor manufacturer, on Monday announced a multiyear, multibillion contract with Amazon Web Services to supply advanced chips used in AWS compute and its data center infrastructure.

As part of the partnership, AWS was issued warrants allowing it to buy up to 24.8 million of STMicro's shares in various stages over the next seven years. If the warrants are exercised, those 24.8 million shares would translate into a 2.7% stake in STMicro (FR:STMPA), with the initial price set at $28.38, around a 4% discount to Friday's closing price.

Shares in STMicro surged as much as 8% on European exchanges, while its U.S.-listed stock $(STM)$ rose around 6.5% in premarket trading. Having declined by 9% so far in 2026, Amazon (AMZN) shares were flat before the official market open.

After releasing fourth-quarter earnings last week, Amazon announced ambitious capital expenditure plans for 2026, guiding investors to $200 billion of spending. The investment in STMicro is part of that spending and was announced Monday morning. This is Amazon's second strategic deal in the sector after its purchase of a stake in Advanced Micro Devices last year. $(AMD)$

The new strategic engagement between STMicro and Amazon illustrates how the largest cloud providers are trying to ensure secure, long-term supplies of chips given the rapid growth of AI workloads and infrastructure requirements. For STMicro, the transaction demonstrates a shift in its strategy away from supplying chips to the auto industry, where demand has been weak, toward more high-performance, next-generation compute infrastructure in which AWS is fast expanding.

For STMicro shareholders, the news is a welcome boost after net profit for the fourth quarter of 2025 fell far short of analyst expectations and recent years have seen a number of guidance reductions as well as rounds of job cuts.

"This strategic engagement establishes STMicro as an important supplier to AWS and validates the strength of our innovation, technology portfolio and our manufacturing capabilities," STMicro's president and chief executive, Jean-Marc Chery, said in the press release.

-Jules Rimmer

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February 09, 2026 08:44 ET (13:44 GMT)

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