STMicroelectronics N.V. designs, develops, manufactures, and sells semiconductor products across Europe, the Middle East, Africa, the Americas, and Asia Pacific. It operates through four segments: Analog, MEMS and Sensors (AM&S); Power and Discrete (P&D); Embedded Processing (EMP); and RF Products (D&RF). The company offers a broad range of products including ASICs, ASSPs, power management solutions, MEMS sensors, silicon and SiC MOSFETs, microcontrollers, and RF communications. It serves the automotive, industrial, personal electronics, communications equipment, and computing markets. Incorporated in 1987, it is headquartered in Schiphol, the Netherlands.
STMicro's recovery gains proof: bookings, China supply, new chips
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Orders turn up and margins start to heal STMicro said orders are now higher than sales across every market and region, and its factory-usage costs are falling. It guided next-quarter revenue up about 25% from a year ago and margins rising toward 35%. That tells investors the chip downturn is ending and profits should recover.
This is the core fundamental driver of the stock: demand and margin recovery.
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First China-made STM32 chips shipped STMicro delivered its first STM32 microcontroller wafers made in China with partner Huahong, and industrial sales rose 26% from a year earlier. Local production helps it win Chinese customers, avoid trade friction, and compete better with Infineon and NXP in industrial and robotics chips.
Shows a concrete new growth and supply-chain move that supports future revenue.
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New LiDAR and quantum-safe security chips launched STMicro launched the VL53L9 3D LiDAR module for robots and AR/VR, and the ST54M chip that protects phones against future quantum-computer attacks. Both open new markets beyond cars and power chips, giving the company fresh sources of revenue as those products ramp.
New products expand STMicro's addressable markets and long-term growth story.
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NXP MEMS sensor deal strengthens auto sensing STMicro is buying NXP's MEMS sensor business, which adds about $40 million in quarterly revenue and high-performance automotive accelerometers. This deepens its sensor lineup for driver-assistance and safety systems, though integration costs may dent profit in the near term.
The acquisition is a strategic move to grow automotive content and design wins.
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ST raises AI datacenter outlook, but weak chip demand still weighs
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Weak third-quarter guidance sends shares down sharply STMicroelectronics plunged 17.7% after forecasting third-quarter revenue below expectations, a sign that demand for its chips is weaker than hoped. That is the main reason the stock fell hard, and it is the biggest counterweight to the company's AI growth story.
This is the largest single price-moving event and shows the demand risk facing the company.
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Datacenter revenue target raised on AI demand ST now expects datacenter revenue above $1 billion in 2026 and well above $2 billion in 2027, helped by strong demand for optical connectivity and power-management chips used in AI infrastructure. This gives investors a concrete, fast-growing new revenue stream beyond its traditional automotive and industrial markets.
It is the clearest new positive driver and explains why the stock has re-rated higher this year.
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Power semiconductor rally on faster NVIDIA AI ramp ST shares rose 4.17% after Mizuho flagged a faster ramp of NVIDIA's Vera Rubin AI systems, which need more power chips per rack. More AI servers being built means more demand for ST's power semiconductors, a direct tailwind for future orders.
It links ST's power-chip business to the AI buildout, a key reason investors are buying the stock.
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New edge AI lab and automotive positioning product ST launched a four-year edge AI research lab with the National University of Singapore and a new vehicle positioning solution with FocalPoint. Both are long-term bets that add new technology and more chip content per car, helping ST defend its market share against rivals like NXP and Infineon.
These are fresh product and research moves that support future growth, though their near-term price impact is smaller.
Q3 2026
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AI datacenter push lifts STMicro, but weak Q3 guidance slams shares
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AI datacenter revenue target raised STMicro raised its 2026 AI datacenter revenue target above $1 billion, with potential for $2 billion in 2027, signaling a new growth engine beyond traditional chips.
This is a new, concrete growth driver that boosts investor optimism.
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Partnerships and edge AI lab A partnership with FocalPoint and a new edge AI lab with NUS expand STMicro's ecosystem in AI and edge computing, opening future revenue opportunities.
These new collaborations show strategic moves into high-growth areas.
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Power semiconductor rally on NVIDIA ramp A rally in power semiconductors, tied to NVIDIA's faster AI ramp, lifted sentiment for STMicro's power chip business, which supplies components for AI infrastructure.
This highlights a direct link between AI demand and STMicro's power products.
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Weak Q3 guidance and charges crush shares Q3 revenue guidance near $3.70 billion and EBITDA of $679 million badly missed forecasts, sending shares down 16–18% as restructuring and acquisition charges weighed.
This is the main negative event that drove the stock down sharply.
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Semiconductors▲
UBS Names ASML, ASM International, STMicroelectronics Top European Chip Picks Ahead of Q3 2026 Earnings
UBS analyst Francois-Xavier Bouvignies maintained a constructive outlook on European semiconductor stocks heading into third-quarter 2026 earnings, naming ASML Holding NV, ASM International NV and STMicroelectronics NV as his top three picks in a September 29 research note. The investment bank raised its wafer-fab equipment forecast for 2026 through 2028, projecting total WFE reaching approximately $225 billion in 2027, up 43% year-over-year, with potential to climb toward $275 billion to $300 billion by 2028, and it keeps 2027-2028 earnings estimates more than 10% above consensus across the sector. ASML remains the top pick with a Buy rating and a €2,350 price target, and UBS expects the company to guide fiscal 2027 revenue growth above 30% year-over-year when it reports third-quarter results on October 14, with its third-quarter revenue estimate of €12.1 billion sitting 3% above consensus. ASM International is second, with UBS forecasting 36% revenue growth in fiscal 2027 versus consensus at 29% and 33% growth in 2028 versus consensus at 19%, translating to EPS estimates 10% above consensus in 2027 and 20% above in 2028 ahead of results due October 27. STMicroelectronics completes the top three with a Buy rating and €80 price target, as UBS sees 2027 EPS roughly 20% above consensus, silicon photonics revenues reaching about $2.0 billion in 2027 and $2.5 billion in 2028, and total datacenter revenues of approximately $2.5 billion, or about 14% of group sales, in 2027 rising to roughly $3.8 billion, or 19% of group sales, by 2028, with fourth-quarter revenue guidance expected up approximately 10% quarter-over-quarter when it reports on October 29.
DG Matrix Doubles Interport Platform Power to 400 kW Using STMicroelectronics SiC Technology
DG Matrix announced that its Interport multi-port solid-state transformer platform now delivers 400 kW, doubling its previous 200 kW output within essentially the same power module footprint, using STMicroelectronics' latest-generation silicon carbide technology. The company said the performance leap comes from silicon carbide devices that enable efficiency above 98.5 percent, the same advanced SiC components ST supplies for leading electric vehicle powertrain applications. DG Matrix said ST has supported its development since the company's early stages, providing access to advanced SiC technologies and technical expertise, and that the collaboration extends beyond component supply into system-level requirements such as voltage, current and thermal performance. The announcement cites a SemiAnalysis report, Inside the 800VDC Revolution, projecting that 800 VDC power architecture will underpin approximately 39 GW of new datacenter capacity by 2030, creating a multi-billion-dollar opportunity for solid-state transformers as GPU rack power densities surge past 600 kW. Rino Peruzzi, President of STMicroelectronics' Americas Region, said the performance achieved with ST's SiC devices opens new possibilities for efficient power infrastructure in AI datacenters, while DG Matrix CEO and co-founder Haroon Inam said the support contributed to a power density breakthrough that defines the Interport's competitive position.
Artificial Intelligence › AI Power & Cooling ▲Technology
Energy Transition & Power Demand › Grid, Transmission & Power Equipment ▲Technology
DG Matrix · Technology · Positive DG Matrix doubled its Interport platform power to 400 kW using ST SiC technology, a power-density breakthrough defining its competitive position.
STMPA.PA · Demand · Positive DG Matrix's Interport platform uses ST's latest-generation SiC technology, extending the collaboration beyond component supply into system-level requirements.
STMicroelectronics Launches ST SafeSense VD56GA Automotive Infrared Sensor
STMicroelectronics introduced the ST SafeSense VD56GA, a compact 1.1 MP infrared automotive image sensor, in September 2026. The sensor is designed to support in-cabin driver and occupant monitoring with higher infrared sensitivity, embedded image processing, and a small CSP package for space-constrained vehicle interiors. The launch underscores STMicroelectronics' push to deepen its role in automotive imaging by combining vertically integrated manufacturing and infrared-optimized pixel technology to help OEMs and Tier 1 suppliers scale in-cabin sensing across more vehicle platforms at lower system cost. The company reported Q2 2026 revenues of US$3,487m and a Q3 midpoint of US$3.70b, and its narrative projects $20.3 billion in revenue and $3.8 billion in earnings by 2029, requiring 15.7% yearly revenue growth and about a $3.3 billion earnings increase from $466.0 million today. Some of the lowest estimating analysts were expecting revenue of about US$19.9b and earnings of roughly US$3.7b by 2029.
STMPA.PA · Technology · Positive Launches ST SafeSense VD56GA automotive infrared image sensor for in-cabin driver/occupant monitoring, deepening its automotive imaging role.
STMPA.PA · Capital · Positive Article cites Q2 2026 revenue of $3,487m, Q3 midpoint of $3.70b, and long-term projections of $20.3b revenue and $3.8b earnings by 2029.
STMicroelectronics Launches VD56GA Infrared Sensor for In-Car Driver Monitoring
STMicroelectronics introduced the ST SafeSense VD56GA, a 1.1-megapixel infrared image sensor for in-cabin driver and passenger monitoring cameras, on September 14. The company says the sensor's stronger infrared imaging lets carmakers pair it with cheaper lenses, simpler infrared lighting and lighter filtering, and skip a separate image-processing chip, trimming cost across the whole camera module; sharpness is up 35% and infrared sensitivity up nearly 60% from the previous generation. An analyst at Yole Group expects driver and occupant monitoring volumes to top 70 million units by 2031, and STMicroelectronics said earlier this year it shipped its 10 millionth SafeSense automotive image sensor. The launch follows second-quarter revenue of $3.49 billion, up 26.0% from a year earlier, with third-quarter guidance of about $3.70 billion at the midpoint, though operating margin under U.S. GAAP was only 5.4% and the power and discrete segment lost $99 million at the operating level. The company has not named any automakers or suppliers committed to the chip, and management's case for faster fourth-quarter growth centers on AI datacenters and satellite communication programs rather than this sensor.
Xingyun Technology signs 921.6 million yuan computing power deal; Texas Instruments raises prices for third time this year
Xingyun Technology announced on the evening of September 3 that it has signed a Computing Power Leasing Agreement with a VD client to provide computing power resource leasing services for a term of five years, with a total tax-inclusive amount of 921.6 million yuan. The VD client is an A-share listed company with sound contract performance capability. The company said the agreement's performance is expected to have a certain impact on future operating results and does not create reliance on the counterparty. In addition, analog chip giant Texas Instruments circulated a price adjustment notice on September 1, implementing a new round of price increases for multiple products. This is its third round of price hikes this year, following increases in March and May. STMicroelectronics, Analog Devices, Maxscend Microelectronics and several other manufacturers have also adjusted prices. Driven by AI, the semiconductor industry has entered a cycle of rising volumes and prices. WSTS forecasts the global analog chip market will reach 86.519 billion US dollars in 2025, up 8.7 percent year on year. In the first half of the year, A-share semiconductor companies posted combined net profit attributable to the parent of 160.506 billion yuan, up 607.2 percent year on year, with seven stocks including Longsys and Puya Semiconductor growing more than 1,000 percent.
STMicroelectronics and NUS Launch Four-Year Edge AI Lab
STMicroelectronics has partnered with the National University of Singapore to launch the ST-NUS HELIX Corporate Lab, a four-year research initiative focused on advancing generative and embodied AI at the edge. The lab will develop technologies that allow AI systems to process information locally rather than relying heavily on cloud infrastructure, targeting applications such as robots, humanoids and drones that require real-time sensing, decision-making and actuation under tight power constraints. Research will span AI models and system architecture, heterogeneous accelerators, on-chip memory hierarchies, circuit design, chip integration and silicon implementation, with a focus on memory-centric architectures and in-memory computing. STMicroelectronics will contribute its silicon, architecture, integration and engineering capabilities, including its P18 18-nanometer FD-SOI technology and embedded Phase Change Memory, and will provide NUS with a dedicated design chassis based on that technology. The collaboration builds on ST's broader edge AI strategy, which includes industrial MEMS sensors with embedded AI, a compact 3D LiDAR module, and ultra-low-power global-shutter image sensors, as well as partnerships with NVIDIA and NXP.
STMicroelectronics Validates ST64UWB Chip Family for New UWB Standard
STMicroelectronics announced that its ST64UWB chip family has achieved successful validation for IEEE 802.15.4ab requirements in collaboration with LitePoint. The validation confirms compliance with a major new UWB standard targeting extended range, improved radar-based sensing, and better interoperability across devices. The ST64UWB is aimed at automotive, consumer, and industrial uses, positioning STMicroelectronics for broader engagement with OEMs and developers focused on next-generation UWB solutions.
STMicroelectronics Raises Datacenter Revenue Ambition on AI Demand
STMicroelectronics has raised its datacenter revenue ambition, now expecting to exceed $1 billion in 2026 and reach well above $2 billion in 2027, driven by strong demand for optical connectivity and power-management solutions in AI infrastructure. The company's Communication Equipment & Computer Peripherals revenues jumped 50% year over year and 13% sequentially in the second quarter, fueled by custom products and microcontrollers for optical connectivity, with traction across silicon photonics ICs, electronic ICs, and microcontrollers. ST is also expanding into the power stage of Cloud AI infrastructure, supplying microcontrollers and high-voltage power and analog products while building a pipeline for low-voltage power and analog solutions, and it secured multiple design wins spanning optical connectivity and silicon and silicon-carbide power solutions. The company expects 2026 net capital expenditures at the high end of its $2-$2.2 billion range, partly reflecting accelerated spending on cloud optical interconnect, and AI datacenter programs together with LEO satellite communication are expected to help push fourth-quarter revenues above $4 billion. STMicroelectronics faces strong competition from Broadcom in AI networking and optical connectivity and from Monolithic Power Systems in AI datacenter power infrastructure, while its stock has soared 115% year to date and trades at a forward 12-month price-to-earnings ratio of 25.04.
Power Semis Rally on Mizuho's Faster NVIDIA Vera Rubin Ramp Signal
Wolfspeed, STMicroelectronics, and ON Semiconductor rallied Monday after Mizuho flagged a faster NVIDIA Vera Rubin ramp anchored by xAI and Meta starting in the fourth quarter of 2026. Wolfspeed rose 5.74% to $33.61, STMicroelectronics gained 4.17% to $56.56, and ON Semiconductor added 2.96% to $85.11. Mizuho expects strong VR200 NVL72 ramps in 2027, with 2027 CoWoS growing more than 75% and cloud service provider backlog now at $2.3 trillion, up 3.5 times year over year. ON Semiconductor says power content per rack rises from $15,000 to $115,000 under 800-volt DC architecture, with AI data center revenue expected to more than double in 2026. The next checkpoints are ON Semiconductor's Analyst Day on September 16, 2026, and NVIDIA's next quarterly update.
STMicroelectronics repurchases 226,883 shares for EUR 11.4 million
STMicroelectronics repurchased 226,883 of its ordinary shares on Euronext Paris between July 20 and July 24, 2026, at a weighted average price of EUR 50.4457 per share, for a total outlay of EUR 11,445,280.67. The buyback, executed by a broker on behalf of the company, represents 0.02% of its issued share capital and was carried out to meet obligations under employee share option programs. Following these transactions, STMicroelectronics holds 19,404,594 treasury shares, approximately 2.1% of its issued share capital. The program was originally approved by shareholders on May 22, 2024, and disclosed in a June 21, 2024 press release.
Escalating Middle East Tensions Drag Global Stock Markets Lower
Global stock markets fell amid escalating tensions in the Middle East. The Dow Jones Industrial Average closed at 51,711.65, down 506.93 points or 0.97%. The S&P 500 ended at 7,408.30, losing 90.66 points or 1.21%. The Nasdaq Composite finished at 25,137.69, dropping 553.21 points or 2.15%. Surging oil prices were the main drag, sparking inflation fears and pushing bond yields higher. Meanwhile, earnings from major technology companies added to concerns about massive spending on artificial intelligence infrastructure. Brent crude futures surged past 100 dollars a barrel for the first time since May, and West Texas Intermediate crude settled above 92 dollars, after the US military launched a new wave of airstrikes against Iran and Iran retaliated by attacking US bases in the region. President Donald Trump also signaled threats of major military action against Iran and the Houthis, after the Houthis attacked two Saudi oil tankers in the Red Sea. In European markets, the Stoxx 600 index closed at 639.27, down 7.66 points or 1.18%, with technology stocks falling 2.9%, led by STMicroelectronics which plunged 17.7% after forecasting third-quarter revenue below expectations. Asian markets opened lower this morning, with Japan's Nikkei index opening down the most in the region at 1.26%, followed by South Korea's Kospi index tumbling 2.58%, while Hong Kong's Hang Seng Index, China's Shanghai Composite Index, and Australia's S&P/ASX 200 all also declined. The Thai stock market is expected to consolidate in line with global trends. A stock to watch is Gulf, after its subsidiary Gulf Edge announced a partnership with Cognizant, a global leader in technology and AI development, to form a strategic collaboration in artificial intelligence and related services, aiming to accelerate Thailand's transition into the AI era.
Energy Transition & Power Demand › Grid, Transmission & Power Equipment Geopolitics
BRENT · Geopolitics · Positive Brent crude surged past $100/barrel for the first time since May due to escalating Middle East conflict and Houthi attacks on Saudi oil tankers.
WTI · Geopolitics · Positive WTI crude settled above $92 as Middle East tensions escalated with US airstrikes and Iranian retaliation, threatening supply.
STMicroelectronics and FocalPoint Launch Advanced Vehicle Positioning Solution
STMicroelectronics and FocalPoint have launched a commercially available advanced vehicle positioning solution. The partnership integrates FocalPoint's GNSS technology onto STMicroelectronics' automotive-grade hardware for use in production vehicles, targeting safer and more accurate positioning in challenging driving conditions and dense urban areas. The S GNSS Auto software runs as a firmware upgrade on ST's Teseo hardware, allowing the solution to target both current and next-generation platforms without requiring a full hardware redesign. This launch adds to STMicroelectronics' automotive offering alongside its existing semiconductors and sensors, and may help the company deepen content per vehicle and defend share against peers such as NXP, Infineon and Texas Instruments.
Semiconductors › Analog, Power & Discrete ▲Competition
Electrification & Mobility › EV Power Semiconductors (SiC / IGBT) Competition
STMPA.PA · Technology · Positive Launches advanced vehicle positioning solution with FocalPoint, enhancing automotive offering and content per vehicle.
Focal Point Positioning · Technology · Positive Partners with STMicroelectronics to launch advanced vehicle positioning solution, commercializing its GNSS technology.
NXPI · Competition · Neutral Named as a peer ST aims to defend share against with its new automotive positioning solution.
European stocks close higher, boosted by strong SAP results driving DAX surge
European stock markets closed higher on Friday, recovering from the sharp drop in the previous session, supported by strong corporate earnings. The STOXX 600 index closed at 644.51 points, up 0.82%, while Germany's DAX index surged 1.36% after SAP shares jumped 10% on higher-than-expected growth in cloud order backlog for the second quarter. European technology stocks rose 1.7%, rebounding from earlier declines, despite disappointing results from STMicroelectronics and BE Semiconductor. Deutsche Bank analysts warned that capital spending by tech giants is no longer supported solely by free cash flow, and low-cost open-source AI is seriously threatening business models. Meanwhile, three European Central Bank policymakers signaled that another rate hike may be necessary due to persistent inflation risks, with markets pricing in around a 70% chance of a 0.25% increase by the end of 2026. Valmet shares surged 22% after results beat expectations and the company announced plans to spin off a business, while Securitas shares fell 11% after profit missed forecasts, and Neste dropped 6.4% on a slight earnings miss.
Tech Stocks Slide as Semiconductor Index Drops 6% Despite Strong Earnings
Technology stocks are under pressure as the MSCI World Semiconductor Index fell 6% in July, with investors rotating away from chipmakers despite strong earnings. EPFR Global analysts noted the long-short ratio on Nasdaq 100 futures dropped 63% over the past year to a 17-year low on July 14, signaling a shift out of technology stocks. STMicroelectronics tumbled 18% after its outlook missed forecasts, while Texas Instruments declined 3% even with an upbeat outlook. Software stocks fared better, with Dassault Systemes rising on in-line results and SAP advancing after cloud revenue matched expectations. JPMorgan strategists recommended buying a call spread on the Magnificent Seven basket, citing heavily reduced positioning that could support the group if earnings hold up.
STMicroelectronics raises data center revenue target to above $2 billion for 2027
STMicroelectronics reported second-quarter 2026 net revenue of $3.49 billion, a 23.3% year-over-year increase, and raised its 2027 data center revenue ambition to well above $2 billion. Gross margin reached 34.8%, up 130 basis points from a year ago, while non-U.S. GAAP diluted earnings per share came in at $0.31. The company cited strong demand in Communication Equipment, Computer Peripherals, and Automotive, with a book-to-bill ratio close to 2 overall and significantly above 2 in the Communication Equipment and Computer Peripherals segment driven by optical connectivity. For the third quarter, STMicroelectronics guided for revenue of $3.7 billion at the midpoint and a gross margin of about 37%, and it expects fourth-quarter revenue to exceed $4 billion, fueled by customer programs in AI data centers and Low Earth Orbit satellite communications. The company also confirmed its $18 billion revenue target for 2028, contingent on completing its manufacturing reshaping program.
STMPA.PA · Demand · Positive Raised 2027 data center revenue target to above $2 billion, strong demand in Communication Equipment and Computer Peripherals, and Q3 guidance above Q2 actual.
European Stocks Close with Steepest Drop in Over Two Weeks on ECB Tightening Signals and Oil Price Surge
European stock markets closed with their biggest decline in more than two weeks on Thursday, with the STOXX 600 index falling 1.18% to close at 639.27 points, pressured by disappointing earnings, hawkish remarks from the European Central Bank, and a surge in crude oil prices. France's CAC-40 dropped 1.64% to close at 8,299.09 points, Germany's DAX fell 1.56% to 24,763.12 points, and London's FTSE 100 declined 0.73% to 10,639.17 points. Although the ECB held interest rates steady, comments from President Christine Lagarde led investors to see a chance of a rate hike in September. Meanwhile, Brent crude futures surged to 100 US dollars per barrel for the first time since May after Houthi forces attacked a Saudi oil tanker in the Red Sea, pushing energy stocks up 1.54%. However, food and beverage stocks tumbled 4.1%, with Nestlé plunging nearly 8%, its biggest drop since 1989, after announcing the sale of some of its water and premium beverage businesses to Platinum Equity. Technology stocks fell 2.9%, led by STMicroelectronics which slumped 17.7% after forecasting third-quarter revenue below expectations, and BE Semiconductor which dropped 7.3% after reporting second-quarter results. In contrast, Soitec surged nearly 22% after revenue beat estimates. TotalEnergies rose 2.5% on its strongest quarterly results in nearly three years, and easyJet gained 2.7% despite a 70% drop in third-quarter profit.
Energy Transition & Power Demand › Grid, Transmission & Power Equipment ▲Pricing
NESN.SW · Capital · Negative Nestlé announced sale of some water and premium beverage businesses to Platinum Equity, causing its biggest drop since 1989.
European Markets Close Weak on Geopolitical Tensions and High Oil Prices
European markets ended notably lower on Thursday as rising Middle East tensions and a surge in oil prices fueled inflation concerns and potential rate hikes. The European Central Bank left its key interest rates unchanged, with the deposit rate at 2.25%, but ECB President Christine Lagarde strongly hinted at a rate increase in September. Brent crude futures shot up more than 7% to $101.22 a barrel. The pan-European Stoxx 600 dropped 1.18%, while Germany's DAX tumbled 1.56% and France's CAC 40 shed 1.64%. Tech stocks were hit by valuation worries amid heavy AI infrastructure spending, with STMicroelectronics plunging 16% in Paris.
STMicroelectronics Slides as Third-Quarter Outlook Misses Estimates
STMicroelectronics fell about 12% in premarket trading after its third-quarter revenue outlook missed Wall Street expectations. The semiconductor company forecast third-quarter revenue of about $3.70 billion, up 6.2% sequentially but below the consensus estimate of $3.80 billion, with gross margin seen at 37% plus or minus 2 percentage points. Second-quarter revenue surged 26% from a year earlier to $3.49 billion and adjusted earnings rose to 31 cents a share, both topping analyst estimates, but EBITDA of $679 million fell short of the $797.7 million projection due to restructuring charges, impairment expenses, and accounting consequences from its acquisition of an NXP sensor business. Management raised its 2026 data center revenue guidance to more than $1 billion and said sales could surpass $2 billion in 2027 if demand remains strong, while projecting fourth-quarter revenues over $4 billion, helped by AI data centers and low-earth orbit satellite communications.
Artificial Intelligence › AI Compute & Accelerator Silicon ▼Demand
STMPA.PA · Capital · Negative Third-quarter revenue outlook of $3.70B missed consensus of $3.80B, and EBITDA fell short due to restructuring and impairment charges.
European semiconductor major STMicroelectronics issued third-quarter revenue guidance with a midpoint of 3.7 billion dollars, slightly below the analyst average estimate of 3.72 billion dollars based on LSEG data. The company said semiconductor demand in automotive, artificial intelligence-related, data centre optical communications, and consumer electronics markets is showing a recovery trend, and set third-quarter revenue guidance at 3.7 billion dollars, plus or minus 3.5 percent. Chief Executive Officer Jean-Marc Chery said in a statement that orders were solid across all end markets and demand expanded, and forecast that fourth-quarter revenue would exceed 4 billion dollars, driven by AI data centres and low-earth-orbit satellite communications. Second-quarter revenue was 3.49 billion dollars, beating the analyst estimate of 3.39 billion dollars, but EBITDA came in at only 679 million dollars, significantly below the market forecast of 797.7 million dollars.
Artificial Intelligence › AI Compute & Accelerator Silicon Demand
Artificial Intelligence › EDA & Semiconductor IP Demand
STMPA.PA · Capital · Negative Q3 revenue guidance midpoint of $3.7B missed analyst estimate of $3.72B, and Q2 EBITDA of $679M significantly missed forecast of $797.7M.
European Markets Summary: London Stocks Rebound, Consumer Staples in Demand
The London stock market closed higher, with the FTSE 100 rebounding. Amid a global sell-off in tech stocks, consumer staples were bought, sending the FTSE 350 Personal Goods index up 2.61%, the Beverages index up 2.36%, and the Retail index up 1.92%. Pharmaceutical giant GSK rose 2.1%, while AstraZeneca gained 0.5%. Automation solutions firm Rotork surged 66.8% after Swiss heavy electrical equipment giant ABB announced its acquisition. European equity markets rose for a third straight session, with the STOXX Europe 600 up 0.16%. The Basic Resources index fell 1.38%, while the Media index climbed 1.43%. Dutch firm ASML Holding rose 3.2%, but STMicroelectronics fell 4.9% and BE Semiconductor dropped 3.2%. Norway's Telenor tumbled 11.6% after lowering its full-year outlook. In eurozone bond markets, the German 10-year yield rose 3 basis points to 3.135%, its highest since May 20. The German-US 10-year yield spread narrowed to 143 basis points. In currencies, the euro traded at 1.1446 dollars, and the dollar at 162.42 yen.
STMicroelectronics Repurchases 145,390 Shares for €9.24 Million
STMicroelectronics has repurchased 145,390 ordinary shares as part of its common share repurchase program. The shares were bought on the Euronext Paris exchange between June 29 and July 3 at a weighted average price of EUR 63.5445, totaling approximately EUR 9.24 million. The buyback program, approved by shareholders in May 2024, is intended to fulfill obligations related to employee share option plans and other corporate share allocations. The repurchased shares represent 0.02% of the company's total issued share capital and may be held in treasury until required for distribution.
STMicroelectronics Could Be 7% Undervalued on FocalPoint Deal
STMicroelectronics may be about 7% undervalued according to a narrative fair value estimate of €66.05, compared to its latest share price of €61.36. The assessment follows a new commercial agreement with FocalPoint that expands their S-GNSS Auto and Teseo collaboration into a full offering. The stock has seen strong momentum, with a 90-day share price return of 78.35% and a year-to-date return of 161.77%. Beyond the FocalPoint deal, the company has been active in AI partnerships with Amazon Web Services and NVIDIA, acquired NXP's MEMS sensor business, and is running a share repurchase program. However, a separate Simply Wall St discounted cash flow model suggests a much lower fair value of €23.54, highlighting a significant divergence in valuation perspectives.
Integrated Passive Devices Market to Reach USD 3.03 Billion by 2035 at 7.43% CAGR
The global Integrated Passive Devices market is projected to grow from USD 1.48 billion in 2025 to USD 3.03 billion by 2035, at a compound annual growth rate of 7.43 percent, according to a report by SNS Insider. The EMS and EMI protection application segment held the largest revenue share in 2025 at around 40 percent, while the automotive end-use segment accounted for nearly 45 percent of market revenues. Europe dominated the market with a roughly 40 percent revenue share in 2025, driven by a strong semiconductor industry and electric vehicle adoption, while Asia Pacific is expected to register the highest growth rate during the forecast period. Key players include Broadcom, Infineon Technologies, Murata Manufacturing, and STMicroelectronics.
STMicroelectronics launches quantum-ready chip and first 3D LiDAR module
STMicroelectronics has introduced the ST54M secure mobile chip with post-quantum cryptography and the VL53L9, its first direct Time-of-Flight 3D LiDAR all-in-one module. The ST54M bundles post-quantum cryptography, secure element, NFC and eSIM in a single chip, targeting smartphone makers, banks, governments and automotive groups. The VL53L9 provides AI-ready depth data for robotics, smart buildings, AR/VR and healthcare without heavy compute. Both products aim at OEMs in areas such as smartphones, robotics, smart buildings, AR/VR, industrial automation and medical equipment. The launches broaden STMicroelectronics' exposure beyond autos and power into secure connectivity and sensing markets.
Goldman’s Oppenheimer Says European Equities Quietly Keeping Pace With S&P 500
Goldman Sachs Chief Global Equity Strategist Peter Oppenheimer noted that European equities have kept pace with the S&P 500 through the first half of the year, driven by AI infrastructure spending spilling over into European chipmakers. ASML surged 72% year to date as the sole supplier of EUV lithography, while STMicroelectronics jumped 190% and Infineon Technologies climbed 115% on AI-related demand. Oppenheimer highlighted that comparable European companies trade at a discount to US peers, with SAP down 35% on an earnings miss yet growing cloud revenue 27% and trading at 19 times forward earnings. He argued profit growth will be the main driver of equity markets, and Europe stacks up reasonably well despite lower tech exposure, with value stocks like Eni up 26% on raised cash flow guidance and an expanded buyback.
ASML.AS · Demand · Positive Surged 72% as sole supplier of EUV lithography, benefiting from AI infrastructure spending.
IFX.XETRA · Demand · Positive AI-related demand drove Infineon up 115% year to date.
SAP.XETRA · Capital · Negative SAP down 35% on an earnings miss, despite growing cloud revenue.
STMPA.PA · Demand · Positive STMicroelectronics jumped 190% on AI-related demand, driven by AI infrastructure spending spilling over into European chipmakers.
ENI.XETRA · Capital · Positive Raised cash flow guidance and expanded buyback drove Eni up 26%.
STMicroelectronics delivers first China-made STM32 wafers via Huahong partnership
STMicroelectronics has delivered the first batch of STM32 wafers fully produced in China by partner Huahong to local customers, marking a key step in its China-for-China supply-chain strategy. The company reported a 26% year-over-year increase in industrial revenues for the first quarter of 2026, with distribution inventories normalized and book-to-bill well above 1 across all end markets and regions. STM expects solid growth in general-purpose microcontrollers in 2026, supported by localized STM32 supply and improving order momentum. The initiative aims to strengthen STM's position in industrial automation, robotics, and physical AI applications amid competition from Infineon and NXP.
Mid-Size Passenger Cars Lead Demand in Vehicle Communication Protocols
The global automotive communication protocol market is projected to grow from USD 7.77 billion in 2026 to USD 10.32 billion by 2033, at a CAGR of 4.1%. Mid-size passenger cars are forecasted to be the largest vehicle class throughout the period, dominating global production and sales and integrating advanced safety, infotainment, and connectivity solutions that necessitate higher network node counts. Automotive Ethernet is poised for rapid growth due to its capability to handle high-bandwidth data transmission essential for ADAS and infotainment, with prominent OEMs like Volkswagen, BMW, and General Motors adopting Ethernet-centric architectures. The North American market, particularly the US, is projected to experience significant growth, driven by extensive integration of safety and infotainment network nodes and the presence of semiconductor giants such as Texas Instruments and Microchip Technology. Key players in the market include NXP Semiconductors, Robert Bosch GmbH, Infineon Technologies AG, and STMicroelectronics.
IFX.XETRA · Demand · Positive Infineon Technologies is listed as a key player in the automotive communication protocol market, which is projected to grow.
STMPA.PA · Demand · Positive STMicroelectronics is listed as a key player in the automotive communication protocol market, which is projected to grow.
Bosch · Demand · Positive Bosch is listed as a key player in the automotive communication protocol market, which is projected to grow.
TXN · Demand · Positive Texas Instruments is named as a semiconductor giant in the North American market, benefiting from growth in automotive communication protocols.
European Shares Surge As Tech Stocks Rally On AI Optimism
European stocks moved higher on Tuesday as technology shares rebounded on renewed AI optimism. The pan-European Stoxx 600 jumped 0.6 percent to 639.82, with Germany's DAX surging 0.9 percent, France's CAC 40 marginally higher, and the UK's FTSE 100 advancing 0.4 percent. Technology stocks including Infineon, STMicroelectronics, and ASML Holding rose between 2 and 3 percent. ECB Chief Economist Philip Lane said in Sintra that second-round effects from higher energy prices may take time to appear and policymakers will not lock into a rate path. Oil prices traded lower, heading for a second monthly decline.
STMicroelectronics edges out NXP Semiconductors as the better automotive chip pick now
STMicroelectronics holds a slight edge over NXP Semiconductors as the better automotive chip investment, according to Zacks Investment Research. STM is expected to deliver stronger revenue and earnings growth, with the Zacks Consensus Estimate for 2026 sales implying a 21.6% year-over-year increase and earnings per share of $1.17, up from 53 cents in 2025. The company has also seen upward revisions to earnings expectations and sports a Zacks Rank #1 (Strong Buy), while NXPI carries a Zacks Rank #2 (Buy). STM shares have surged 134.8% in the past year, compared with a 26.8% rise for NXPI and a 21.8% gain for the S&P 500. Although STM trades at a richer forward price-to-earnings ratio of 36.78 times, its superior growth profile and favorable earnings momentum justify the premium.
European Shares Subdued Amid Middle East Caution; Tech Shares Rally
European stocks were subdued on Monday, with the pan-European Stoxx 600 marginally lower at 635.36, while technology shares rallied after South Korea announced a $576 billion semiconductor and AI investment plan backed by Samsung and SK Hynix. The German DAX was marginally higher, France's CAC 40 dropped 0.4 percent, and the U.K.'s FTSE 100 slipped 0.2 percent as crude oil prices rose slightly on renewed U.S.-Iran tensions. Technology stocks gained, with ASML Holding, Infineon, and STMicroelectronics climbing 1 to 3 percent. Nordex Group shares rose about 1 percent after securing a 325-MW order in the United States, while Prosus N.V. rallied 2.4 percent after reporting an 84 percent jump in full-year adjusted core profit. French biotech Ipsen advanced 1.7 percent after agreeing to acquire U.S. biotech Kartos Therapeutics in a deal worth up to $1.75 billion, and BT Group rose about 1 percent after signing an agreement to combine its international business in a joint venture with Verizon.
IPN.PA · Capital · Positive Ipsen agreed to acquire Kartos Therapeutics in a deal worth up to $1.75 billion, which is a strategic M&A move.
NDX1.XETRA · Demand · Positive Nordex secured a 325-MW order in the United States.
PRX.AS · Capital · Positive Prosus reported an 84% jump in full-year adjusted core profit.
Kartos Therapeutics, Inc. · Capital · Positive Kartos Therapeutics is being acquired by Ipsen in a deal worth up to $1.75 billion, a positive M&A event.
BT-A.LSE · Capital · Positive BT Group signed an agreement to combine its international business in a JV with Verizon.
ASML.AS · Demand · Positive ASML climbed 1-3% as tech shares rallied after South Korea's $576B semiconductor investment plan.
STMicroelectronics N.V. Is A Stock That Could Skyrocket According To Newsletters
STMicroelectronics N.V. is being pitched in Mark Skousen's The Skousen Report as a top stock that could skyrocket, tied to hype around SpaceX's historic IPO. The newsletter markets the company as a global semiconductor powerhouse whose technology is packed into every satellite Elon Musk launches, though Stock Gumshoe identifies the teased stock as STMicroelectronics. STMicroelectronics is one of the largest semiconductor firms, designing and selling power management chips, analog chips, and sensors, with shares up 140% over the past year and 164% year-to-date. Mizuho raised its price target to $68 from $56 on May 19th, maintaining an Outperform rating, citing potential tailwinds from AI server demand.
onsemi vs. STMicroelectronics: Which EV Chip Stock Is the Better Buy?
onsemi and STMicroelectronics are both well-positioned to benefit from rising semiconductor content in electric vehicles and AI infrastructure, but onsemi offers a better risk-reward balance according to a Zacks Investment Research analysis. onsemi has moved beyond the cyclical trough with revenues exceeding guidance and operating income growth roughly doubling revenue growth, while its EliteSiC platform powers about 55% of new EV models at the 2026 Beijing Auto Show and AI data center revenue more than doubled year over year. STMicroelectronics posted a 23% year-over-year revenue increase in the first quarter of 2026 and expects AI data center revenues to surpass $500 million this year, but its operating margins remain well below historical levels due to restructuring and underutilized capacity. onsemi's trailing 12-month return on invested capital stands at 9.22% versus STMicroelectronics' 1.24%, and its forward price-to-earnings ratio of 31.28 is lower than STMicroelectronics' 37.57. Analysts have raised onsemi's 2026 earnings estimate to $3.09 per share, implying 31.5% growth, while STMicroelectronics' estimate rose to $1.17, implying 120.8% growth from a depressed base. onsemi carries a Zacks Rank #2 (Buy) compared to STMicroelectronics' Zacks Rank #3 (Hold), reflecting its superior profitability, healthier returns on capital, and more attractive valuation.
Electrification & Mobility › EV Power Semiconductors (SiC / IGBT) Competition
Semiconductors › Analog, Power & Discrete Competition
Artificial Intelligence › AI Compute & Accelerator Silicon Competition
ON · Demand · Positive EliteSiC platform powers 55% of new EV models at 2026 Beijing Auto Show and AI data center revenue more than doubled
STMPA.PA · Capital · Negative operating margins remain well below historical levels due to restructuring and underutilized capacity, and Zacks Rank #3 (Hold)
STMicroelectronics Acquires NXP's MEMS Sensor Business to Strengthen Automotive Sensing
STMicroelectronics is strengthening its position in the sensor market through the acquisition of NXP's MEMS sensor business. The acquired business contributed roughly $40 million in revenues during the first quarter of 2026, and management says integration is progressing according to plan. The deal brings complementary high-performance automotive accelerometers from NXP alongside STM's six-axis MEMS sensors, enhancing its portfolio for advanced driver-assistance systems and other safety applications. Management expects the combined technology to outperform the underlying automotive sensor market and accelerate design wins. The acquisition aligns with STM's strategy to increase semiconductor content in connected and intelligent vehicles, though near-term integration costs may weigh on profitability.
European stocks traded higher on Thursday, with the pan-European STOXX 600 up half a percent at 638.52, as technology stocks gained following strong forecasts from U.S. chipmakers Micron and Qualcomm. The German DAX surged 0.6 percent, while France's CAC 40 and the U.K.'s FTSE 100 both rose around 0.4 percent. Infineon climbed 5.2 percent and STMicroelectronics gained 3.7 percent, while easyJet shares jumped nearly 7 percent after rejecting a fourth takeover proposal from Castlelake. German consumer sentiment is set to improve in July, with GfK's index rising to minus 29.2 from minus 29.7, though missing forecasts, and French consumer confidence improved to 84.0 in June from 82 in May.
EZJ.LSE · Capital · Positive EasyJet rejected a fourth takeover proposal from Castlelake, indicating potential premium or strategic value.
IFX.XETRA · Demand · Positive Infineon climbed 5.2% following strong forecasts from U.S. chipmakers Micron and Qualcomm, signaling robust demand for semiconductors.
STMPA.PA · Demand · Positive STMicroelectronics gained 3.7% after strong forecasts from U.S. chipmakers Micron and Qualcomm, indicating positive demand outlook.
STMicroelectronics Launches Quantum-Ready Mobile Security Chip
STMicroelectronics introduced the ST54M, a mobile security chip designed to prepare phones and connected devices for the quantum computing era. The chip integrates NFC, eSIM, and secure element technology alongside hardware for post-quantum cryptography, aiming to protect data from future quantum-based attacks. The company said the chip gives customers time to prepare before stricter industry requirements are expected around 2030. The launch signals STMicroelectronics' effort to position itself in a market where security is becoming increasingly important across everyday electronics.
STMicroelectronics Launches LiDAR and Post-Quantum Mobile Security Chip
STMicroelectronics has introduced the VL53L9 3D LiDAR module for edge AI systems and the ST54M secure mobile chip with a hardware accelerator for post-quantum cryptography. The VL53L9 targets spatial awareness in robotics and AR/VR, while the ST54M addresses future security needs for mobile devices. The launches align with growing demand for local processing and stronger security in connected devices. The company operates across automotive, industrial, consumer, and communication markets.
STMicroelectronics Unveils VL53L9 3D LiDAR Module for Edge AI
STMicroelectronics has introduced the FlightSense VL53L9, a compact direct Time-of-Flight 3D LiDAR module designed for high-resolution depth sensing in next-generation edge AI applications. The module features 2,268 sensing zones with a 54 by 42 resolution and a wide field of view, enabling detailed 3D mapping and precise detection of small objects at distances from less than five centimeters to nine meters with up to 1% accuracy and frame rates reaching 100 frames per second. Its AI-ready output and dual-scan flood illumination capture both 2D infrared and 3D depth images, reducing motion artifacts and simplifying deployment on low-compute edge AI systems. STMicroelectronics plans to begin mass production in early July 2026, with samples and volume shipments already available to customers globally. The company also completed the acquisition of NXP Semiconductors' MEMS sensor business in the first quarter of 2026, adding approximately $40 million in quarterly revenues, and expanded partnerships with NVIDIA and Amazon Web Services to strengthen its position in AI, automotive, and industrial markets.
European stocks mixed as political and geopolitical risks weigh
European stocks ended mixed on Monday, with the pan-European Stoxx 600 edging down 0.1%, as investors weighed Middle East developments against a potential shift in UK political leadership. London's UKX slipped 0.1%, Germany's DAX was nearly flat at plus 0.01%, and France's CAC fell 0.3%. On the geopolitical front, the first round of talks between senior US and Iranian officials in Switzerland concluded amid tensions, while speculation rose that UK Prime Minister Keir Starmer may announce his resignation. In corporate news, EasyJet reportedly rejected three offers from Castlelake, which then took its latest proposal valuing the budget carrier at about £4.74 billion directly to shareholders. Tech stocks including ASML, Infineon, and STMicroelectronics led gains, while automakers Volkswagen and Mercedes-Benz and luxury brand Moncler dragged on performance.
STMicroelectronics sees stronger bookings and easing capacity charges boost gross margin recovery
STMicroelectronics reported a first-quarter 2026 gross margin of 33.8%, or 34.1% excluding purchase price allocation effects tied to its acquisition of NXP's MEMS sensor business, as lower unused capacity charges and a more favorable product mix drove year-over-year improvement. The company posted a book-to-bill ratio well above 1 across all end markets and regions, with distribution inventories normalized, and guided for second-quarter revenues of $3.45 billion at the midpoint, representing sequential growth of 11.6% and year-over-year growth of 24.9%, while gross margin is expected to rise to about 34.8%, or 35.2% on a non-GAAP basis, despite roughly 100 basis points of unused capacity charges. Management expects gross margin to improve sequentially through the third and fourth quarters, supported by higher revenues, lower underutilization charges, and continued mix improvement, though the recovery remains execution-dependent as the company transfers technologies from 200-millimeter to 300-millimeter fabs and transitions silicon carbide production from 150-millimeter to 200-millimeter, moves that are temporarily weighing on manufacturing efficiency. Peer comparisons show onsemi reported a first-quarter gross margin of 38.5% with manufacturing utilization improving sequentially to 77%, while Navitas Semiconductor posted a gross margin of 39.0%, up from 38.7% in the prior quarter, underscoring that margin expansion across the power semiconductor space is being driven by improving demand, better utilization, and richer product mix.
STMPA.PA · Demand · Positive Stronger bookings with book-to-bill above 1 across all end markets and regions, indicating improving end-customer demand.
STMPA.PA · Capital · Positive Gross margin recovery driven by lower unused capacity charges and favorable product mix, with guidance for sequential improvement.
NXPI · Capital · Negative STM's acquisition of NXP's MEMS sensor business is mentioned as causing purchase price allocation effects, but no direct impact on NXP; negative due to divestiture context.
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