Company Reports

STMicroelectronics reported second-quarter revenue of $3.49 billion, up 26% year over year and above the midpoint of guidance. ST forecasts third-quarter revenue of $3.70 billion, which would be up 16% year over year but below FactSet consensus estimates of $3.79 billion.

STMicroelectronics is one of Europe's largest chipmakers and holds one of the broadest product portfolios in the industry. We think it has some promising growth opportunities on the horizon in automotive products, artificial intelligence data centers, and low earth orbit satellites.

STMicroelectronics has raised its revenue ambition for its data center chip business. It now expects $1 billion of data center revenue in 2026, up from prior comments of “nicely above $500 million,” and thinks revenue could double in 2027, up from “well above $1 billion” expected previously.

STMicroelectronics is one of Europe's largest chipmakers and holds one of the broadest product portfolios in the industry. We think it has some promising growth opportunities on the horizon in automotive products, artificial intelligence data centers, and low earth orbit satellites.

STMicroelectronics reported first-quarter revenue of $3.10 billion, up 23% year over year and ahead of guidance. ST forecasts June-quarter revenue of $3.45 billion, up 25% year over year and well ahead of FactSet consensus estimates of $3.18 billion.

STMicroelectronics is one of Europe's largest chipmakers and holds one of the broadest product portfolios in the industry. We think ST has some promising growth opportunities on the horizon in automotive products, AI data centers, and Low Earth Orbit satellites.

STMicroelectronics reported fourth-quarter revenue of $3.33 billion, flattish year over year but up 4.5% sequentially and above the midpoint of guidance. ST’s first-quarter revenue forecast of $3.04 billion was ahead of FactSet consensus estimates and would represent 21% year over year growth.

STMicroelectronics is one of Europe's largest chipmakers and holds one of the broadest product portfolios in the industry. We think ST has some promising growth opportunities on the horizon in automotive products and AI data centers, including silicon carbide-based semiconductors.

We met with executives from Microchip Technology, Texas Instruments, and STMicroelectronics at CES 2026 in Las Vegas. Our conversations centered on artificial intelligence, robotics (including humanoids), and automotive chip opportunities.

STMicroelectronics reported third-quarter revenue of $3.19 billion, down 2% year over year but up 15% sequentially and ahead of guidance. The firm’s fourth-quarter outlook of $3.28 billion calls for 3% sequential growth, below normal seasonal patterns and FactSet estimates.

STMicroelectronics is one of Europe's largest chipmakers and holds one of the broadest product portfolios in the industry. We think ST has some promising growth opportunities on the horizon in automotive products and AI data centers, including silicon carbide-based semiconductors.

STMicroelectronics agreed to acquire the Micro-Electro-Mechanical Systems, or MEMS, sensor business of NXP Semiconductors for $950 million. ST disclosed that NXP’s MEMS business generated $300 million of revenue in 2024 with gross and operating margins that would be accretive to ST.

STMicroelectronics reported second-quarter revenue of $2.77 billion, ahead of guidance and up 10% sequentially but still down 14% year over year. Third-quarter revenue guidance of $3.17 billion would be up 15% sequentially, down only 2.5% year over year, and ahead of FactSet consensus estimates.

STMicroelectronics reported first-quarter revenue of $2.52 billion, down 27% year over year but in line with guidance. ST expects second-quarter revenue of $2.71 billion, up 8% sequentially and ahead of FactSet consensus estimates. Shares rose about 6% with the earnings release.

STMicroelectronics is one of Europe's largest chipmakers and holds one of the broadest product portfolios in the industry. The company has made structural improvements to its product mix and gross margin profile, which has allowed it to carve out a narrow economic moat. We think ST has some promising growth opportunities on the horizon in microcontrollers and automotive products, including silicon carbide-based semiconductors.

STMicroelectronics is one of Europe's largest chipmakers and holds one of the broadest product portfolios in the industry. The company has made structural improvements to its product mix and gross margin profile, which has allowed it to carve out a narrow economic moat. We think ST has some promising growth opportunities on the horizon in microcontrollers and automotive products, including silicon carbide-based semiconductors.

Narrow-moat STMicroelectronics reported decent fourth-quarter results but provided investors with a disappointing forecast for the March quarter and indicated that it had little visibility into if and when business conditions would improve later this year. A slowdown in European manufacturing activity, on top of an already-severe inventory correction in key end markets, will likely drive ST into another year of revenue declines and gross margin erosion. The forecast reduces our confidence in the firm's ability to bounce all the way back to achieve its 2028 target of $18 billion of revenue. We are cutting our long-term revenue forecast rather dramatically and, in turn, reducing our fair value estimate to $32 from $44 (EUR 31 from EUR 40 for European shares). Given the 10% selloff to the $22 range, ST still appears undervalued, but we have less confidence in a massive business recovery in the near to medium term.

We attended STMicroelectronics’ product demonstrations at CES 2025 and remain encouraged by the company’s broadening portfolio in power semiconductors. We maintain our narrow moat rating and $44/EUR 40 fair value estimate and continue to view the shares as materially undervalued.

We maintain our $44/EUR 40 fair value estimate for narrow-moat STMicroelectronics as the company introduced revised financial targets for 2028 at its capital markets day that were largely in line with our prior expectations. ST will fall flat versus its ambitions outlined a couple of years ago, such as hitting $20 billion of revenue, but now hopes these longer-term ambitions will be realized in 2030. We found management’s commentary to be refreshing, as it highlighted growth opportunities while yanking some of its prior targets, such as $5 billion of silicon carbide revenue, that were looking less and less likely. The shares still appear materially undervalued to us, as if ST will be unable to even come close to hitting any of these new 2028 targets.

STMicroelectronics is one of Europe's largest chipmakers and holds one of the broadest product portfolios in the industry. The company has made structural improvements to its product mix and gross margin profile, which has allowed it to carve out a narrow economic moat. We think ST has some promising growth opportunities on the horizon in microcontrollers and automotive products, including silicon carbide-based semiconductors.