STM
STMicroelectronics (NYSE: STM) fell 17% after issuing weaker-than-expected revenue guidance for Q3, though...
Article Summary
HOLD- STMicroelectronics (NYSE: STM) fell 17% after issuing weaker-than-expected revenue guidance for Q3, though shares remained up 121% in 2026 after strong gains driven by data-center demand.
- ST Microelectronics expects sales of about $3.7 billion at the midpoint of guidance, down 16% year-over-year but below analysts' estimates, with shares down 15% at 12:07 p.m. in Paris, marking their largest intraday decline since July 2025.
- Analysts expect Q4 revenue to exceed $4 billion, representing more than 20% growth, supported by AI-related demand and Amazon.com's AWS-related semiconductors agreement.
- Citi analysts said the outlook suggests a developing cyclical recovery across STM's markets and continued acceleration in AI and data center demand, but rising expectations could make further near-term gains difficult without higher earnings estimates.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 0.8% | 25% | 20.0 ptsMinimal (0.8%) - Very weak |
| EPS Growth Next 5Y ? | 95.7% | 25% | 100.0 ptsExceptional (95.7%) - Very high expectations |
| Target Price Upside ? | 49.7% | 20% | 95.0 ptsHuge Upside (49.7%) - Target: $80.08 vs Current: $53.49 |
| Gross Margin % ? | 33.8% | 15% | 40.0 ptsModerate (33.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -34.3% | 15% | 80.0 ptsSolid Dip (-34.3%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About STM
- STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific.
- The company operates through Analog products, MEMS and Sensors Group (AM&S); Power and Discrete products (P&D); Embedded Processing (“EMP”); and RF Products (D&RF) segments.
- It offers industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); power management solutions; custom analog ICs, wireless charging solutions; galvanic isolated gate and LED drivers; converters, transistors, intelligent power switches, clocks and timers, comparators, and current-sense amplifiers; micro-electro-mechanical systems (MEMS) sensors, including accelerometers, gyroscopes, magnetic sensors, pressure, temperature, presence detection, biosensors, machine learning, and edge AI processing smart sensors, as well as thermal and piezoelectric actuators; and optical sensing solutions.
- The company also provides silicon MOSFETs, SiC MOSFETs, IGBTs, thyristors, rectifiers, and power modules and bipolar transistors; microcontrollers, and automotive microcontrollers and secured; radio frequency (RF) communications and ASICs; car infotainment products; ultra-wide band and radar systems; and Connected Security Products; and automotive driver assistance systems.
- It serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets.
- STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Schiphol, the Netherlands.