tiprankstipranks
Trending News
More News >
STMicroelectronics (STM)
NYSE:STM
Advertisement

STMicroelectronics (STM) AI Stock Analysis

Compare
3,080 Followers

Top Page

STM

STMicroelectronics

(NYSE:STM)

Select Model
Select Model
Select Model
Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
$29.00
▲(2.47% Upside)
STMicroelectronics' overall stock score reflects solid financial performance and strategic initiatives to address revenue declines. However, technical indicators and valuation suggest caution, with mixed earnings call sentiment highlighting both opportunities and challenges.
Positive Factors
Strong Market Position in IoT and Automotive
STMicroelectronics' leadership in IoT and automotive sectors positions it well for long-term growth, leveraging technological advancements and increasing demand for smart and connected devices.
Healthy Balance Sheet
A strong balance sheet with low leverage provides STM with financial stability and flexibility to invest in growth opportunities and navigate economic uncertainties.
Strategic Acquisition
The acquisition of NXP’s MEMS sensors business enhances STM's market position in sensors, particularly in automotive safety and industrial applications, supporting long-term revenue growth.
Negative Factors
Revenue Decline
A significant year-over-year revenue decline indicates challenges in maintaining growth momentum, potentially impacting long-term financial performance if not addressed.
Gross Margin Pressure
Declining gross margins due to unfavorable product mix and inefficiencies could strain profitability, necessitating strategic adjustments to improve cost management.
Challenges in Automotive Market
Significant decline in automotive revenues highlights sector-specific challenges, which could affect STM's growth prospects if not mitigated through strategic initiatives.

STMicroelectronics (STM) vs. SPDR S&P 500 ETF (SPY)

STMicroelectronics Business Overview & Revenue Model

Company DescriptionSTMicroelectronics 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 Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs), and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; and radio frequency (RF) products. It also offers application-specific standard products for analog, digital and mixed-signal applications. In addition, the company provides assembly and other services. It sells its products through distributors and retailers, as well as through sales representatives. The company 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.
How the Company Makes MoneySTMicroelectronics generates revenue primarily through the sale of semiconductor products across multiple sectors. Key revenue streams include sales of integrated circuits, microcontrollers, and sensors, which are utilized in consumer electronics, automotive applications, and industrial automation. STM benefits from strategic partnerships with major technology companies and OEMs, allowing it to integrate its products into a wide range of applications. Additionally, the company's investment in research and development enables it to innovate and capture emerging market opportunities, particularly in IoT and electric vehicle technologies. Fluctuations in demand for electronics and advancements in technology significantly influence STM's earnings.

STMicroelectronics Key Performance Indicators (KPIs)

Any
Any
Revenue by Product
Revenue by Product
Examines revenue generated from individual products, shedding light on best-sellers, market trends, and product lifecycle stages.
Chart InsightsSTMicroelectronics is experiencing a notable decline in revenue from its Analog Power and Microcontrollers segments, reflecting broader challenges in the semiconductor market. Despite sequential growth in automotive and industrial sectors, the company faces significant year-over-year revenue declines across several segments, including a 22.2% drop in Power and Discrete. The earnings call highlights a strategic focus on reshaping manufacturing to achieve cost savings, which could mitigate future margin pressures. However, current gross margin challenges and an operating loss underscore the need for careful navigation in a competitive landscape.
Data provided by:Main Street Data

STMicroelectronics Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with some strong revenue performances in certain segments and sustainability achievements, but also highlighted significant challenges in the automotive market and declining gross margins. The company's efforts to address these issues and expected sequential growth in Q3 provide some optimism.
Q2-2025 Updates
Positive Updates
Revenue and Growth Exceed Expectations
Q2 2025 revenues were $2.77 billion, $56 million above the midpoint of the business outlook range, driven by higher-than-expected revenues in Personal Electronics and Industrial segments.
Positive Momentum in Automotive Sector
Automotive revenues grew about 14% sequentially, driven by Asia Pacific, excluding China, and the Americas. The company secured significant wins with silicon carbide and silicon devices for new DC-DC converters and onboard chargers.
Strong Performance in Personal Electronics and Industrial
Personal Electronics revenues were above expectations, and Industrial revenues showed strong sequential growth with continued year-over-year improvement.
Sustainability Achievements
STMicroelectronics was recognized in the Time World's Most Sustainable Companies List for the second consecutive year and received leadership recognition from CDP for climate and water security.
Expected Revenue Growth in Q3
The company expects Q3 2025 revenues to be $3.17 billion, representing a 14.6% sequential increase, with all end markets except Automotive back to year-on-year growth.
Negative Updates
Year-Over-Year Revenue Decline
Year-over-year, Q2 2025 revenues declined by 14%, with notable decreases in Analog products, MEMS and Sensors (down 15.2%), and Power and Discrete products (down 22.2%).
Challenges in Automotive Market
Automotive revenues declined by about 24% year-over-year, with specific customer dynamics affecting performance. The book-to-bill ratio fell below parity due to trade and tariff uncertainties.
Gross Margin Pressure
Q2 2025 gross margin was 33.5%, decreasing by 660 basis points year-over-year, impacted by unfavorable product mix, lower manufacturing efficiency, and higher unused capacity charges.
Inventory and Cash Flow Challenges
Inventory increased to $3.27 billion, with days sales of inventory slightly above expectations. Net cash from operating activities decreased by 49.6% year-over-year, and free cash flow was negative.
Ongoing Currency Impact
Gross margin for Q3 is expected to be impacted by negative currency effects and costs related to the manufacturing reshaping program.
Company Guidance
During the STMicroelectronics' second quarter 2025 earnings call, the company provided several key financial metrics and forward-looking guidance. The revenue for Q2 2025 was reported at $2.77 billion, which exceeded the midpoint of their business outlook by $56 million, with specific strength in Personal Electronics and Industrial sectors. However, the Automotive segment underperformed due to customer-specific issues. The gross margin stood at 33.5%, aligning with the midpoint of expectations. Looking forward, STMicroelectronics projected Q3 2025 revenues at $3.17 billion, marking a sequential increase of 14.6% but a year-over-year decrease of 2.5%. The company also anticipated maintaining a gross margin of around 33.5% for the third quarter. For the full year, capital expenditures are expected to range between $2 billion and $2.3 billion as part of a strategy to reshape their manufacturing footprint. The company aims to achieve annual cost savings in the high triple million dollar range by exiting 2027.

STMicroelectronics Financial Statement Overview

Summary
STMicroelectronics presents a robust financial structure with effective leverage management and operational efficiency. However, the recent decline in revenue and moderate profitability ratios highlight the need for strategic initiatives to boost growth and improve returns on equity.
Income Statement
75
Positive
STMicroelectronics shows solid profitability with a TTM gross profit margin of 35.8% and net profit margin of 5.5%. However, there is a noticeable decline in revenue compared to the previous year, signaling potential challenges in revenue growth. The EBIT and EBITDA margins, at 6.3% and 20.0% respectively, highlight operational efficiency but also suggest room for improvement in cost management.
Balance Sheet
80
Positive
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.17, indicating conservative leverage. The equity ratio of 69.7% reflects strong asset backing. ROE stands at 3.7%, which is lower than industry expectations, suggesting that profitability from equity could be enhanced.
Cash Flow
70
Positive
STMicroelectronics' cash flow position is stable, with positive operating cash flow to net income ratio of 3.6, demonstrating efficient cash generation from operations. The free cash flow growth is positive, although relatively small, indicating careful capital expenditure management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.89B13.27B17.29B16.13B12.76B10.22B
Gross Profit4.26B5.22B8.29B7.33B5.05B3.40B
EBITDA2.38B3.72B6.38B6.40B3.61B2.27B
Net Income649.73M1.56B4.21B3.96B2.00B694.00M
Balance Sheet
Total Assets25.46B24.74B24.45B19.98B15.54B14.45B
Cash, Cash Equivalents and Short-Term Investments5.63B6.18B6.08B4.52B3.52B3.72B
Total Debt2.96B3.17B3.17B2.91B2.74B2.82B
Total Liabilities7.48B7.06B7.60B7.22B6.27B5.95B
Stockholders Equity17.75B17.45B16.73B12.69B9.21B8.45B
Cash Flow
Free Cash Flow45.80M-216.00M1.46B2.05B1.19B804.00M
Operating Cash Flow2.34B2.96B5.99B5.58B3.46B2.46B
Investing Cash Flow-3.00B-3.74B-5.71B-4.98B-1.86B-2.34B
Financing Cash Flow-796.05M-155.00M-267.00M-556.00M-1.37B279.00M

STMicroelectronics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.30
Price Trends
50DMA
27.02
Positive
100DMA
27.49
Positive
200DMA
25.62
Positive
Market Momentum
MACD
0.47
Negative
RSI
57.90
Neutral
STOCH
80.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STM, the sentiment is Positive. The current price of 28.3 is above the 20-day moving average (MA) of 27.06, above the 50-day MA of 27.02, and above the 200-day MA of 25.62, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 57.90 is Neutral, neither overbought nor oversold. The STOCH value of 80.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STM.

STMicroelectronics Risk Analysis

STMicroelectronics disclosed 33 risk factors in its most recent earnings report. STMicroelectronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs. Q4, 2024

STMicroelectronics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
18.43B15.1012.92%6.49%5.46%-26.72%
67
Neutral
$25.89B41.783.72%1.22%-22.97%-78.58%
67
Neutral
24.48B23.5211.59%3.11%4.86%6.44%
67
Neutral
20.83B46.445.87%-17.93%-75.83%
56
Neutral
9.43B-122.96-5.53%33.50%-197.38%
54
Neutral
18.33B-156.68-1.01%-0.65%-114.26%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STM
STMicroelectronics
28.30
-1.71
-5.70%
ASX
ASE Technology Holding Co
11.46
1.53
15.41%
MTSI
MACOM Technology Solutions Holdings
129.39
17.87
16.02%
ON
ON Semiconductor
49.77
-24.62
-33.10%
UMC
United Micro
7.45
-0.89
-10.67%
GFS
GlobalFoundries Inc
35.59
-5.36
-13.09%

STMicroelectronics Corporate Events

STMicroelectronics Completes Share Buyback Program in August 2025
Sep 2, 2025

On September 1, 2025, STMicroelectronics announced the completion of a share buyback program, repurchasing 271,723 ordinary shares between August 25 and August 29, 2025, at an average price of EUR 23.4140 per share. This buyback, part of a program approved in 2024, is intended to fulfill obligations related to share option programs and other allocations. The transactions, conducted on Euronext Paris, amounted to a total of EUR 6,362,126.30, and the company now holds approximately 2.1% of its issued share capital in treasury shares. This strategic move is likely to impact the company’s financial management and shareholder value.

STMicroelectronics Completes Share Buyback Program in August 2025
Aug 25, 2025

On August 25, 2025, STMicroelectronics announced the completion of a share repurchase program conducted from August 18 to August 22, 2025. During this period, the company repurchased 347,979 ordinary shares at an average price of EUR 22.2975, totaling EUR 7,759,044.98. The repurchase is part of a program approved in 2024 to meet obligations from share option programs and other allocations. This move is expected to influence the company’s stock value and provide flexibility in managing its capital structure.

STMicroelectronics Releases 2025 Semi Annual Financial Reports
Aug 20, 2025

On August 20, 2025, STMicroelectronics announced the release of its IFRS 2025 Semi Annual Accounts and the Semi Annual IFRS Report 2025. This release provides stakeholders with detailed insights into the company’s financial performance for the first half of the year, potentially impacting investor confidence and market positioning. The publication of these financial statements is crucial for maintaining transparency and informing strategic decisions.

STMicroelectronics Releases IFRS 2025 Semi-Annual Accounts
Aug 20, 2025

On August 20, 2025, STMicroelectronics published its IFRS 2025 Semi-Annual Accounts for the period ending June 28, 2025. The accounts, prepared according to International Financial Reporting Standards, are available on the company’s and the Netherlands Authority for the Financial Markets’ websites. This publication reflects the company’s commitment to transparency and regulatory compliance, potentially impacting its market credibility and stakeholder confidence.

STMicroelectronics Reports Share Buyback Results for August 2025
Aug 18, 2025

STMicroelectronics announced the results of its share repurchase program for the period from August 11 to August 15, 2025, during which it repurchased 300,000 ordinary shares at an average price of EUR 22.0187, totaling EUR 6,605,604. This buyback, part of a program approved in 2024, aims to fulfill obligations related to share option programs and other allocations. The transactions reflect the company’s strategic financial management and may influence its market positioning by potentially increasing shareholder value.

STMicroelectronics Reports Q2 2025 Financial Results with Revenue Growth
Aug 4, 2025

STMicroelectronics released its financial results for the second quarter and the first half of 2025, showing a 9.9% sequential increase in net revenues to $2.766 billion but a 14.4% year-over-year decline. The gross margin slightly improved to 33.5% from the previous quarter. This financial performance highlights the company’s ongoing efforts to navigate market challenges and maintain its industry position while continuing its focus on sustainability goals.

STMicroelectronics Completes Share Buy-Back Program in July 2025
Jul 28, 2025

On July 28, 2025, STMicroelectronics announced the completion of a share buy-back program, repurchasing 474,844 ordinary shares between July 21 and July 25, 2025, at an average price of EUR 24.9079 per share, totaling EUR 11,827,369.61. This initiative, part of a previously announced program, aims to fulfill obligations related to share option programs and other allocations, while also potentially serving other lawful purposes. The buy-back reflects the company’s strategic financial management and commitment to enhancing shareholder value, with the repurchased shares representing approximately 0.05% of the company’s issued share capital.

STMicroelectronics Acquires NXP’s MEMS Sensors Business to Boost Market Position
Jul 25, 2025

On July 24, 2025, STMicroelectronics announced its acquisition of NXP Semiconductors’ MEMS sensors business for up to $950 million. This strategic move aims to enhance ST’s position in the global sensors market by integrating NXP’s complementary technology and product portfolio, particularly in automotive safety and industrial applications. The acquisition is expected to be accretive to ST’s earnings per share and will be financed from existing liquidity, with the transaction set to close in the first half of 2026.

STMicroelectronics Reports Q2 2025 Financial Results Amid Restructuring
Jul 24, 2025

On July 24, 2025, STMicroelectronics reported its financial results for the second quarter of 2025, revealing net revenues of $2.77 billion and a net loss of $97 million. The results showed a year-over-year revenue decrease of 14.4%, with significant impacts from impairment and restructuring charges. Despite a challenging macroeconomic environment, the company anticipates sequential revenue growth in the third quarter, driven by increased bookings in the industrial sector, although automotive bookings remain below expectations. The company is focused on reshaping its manufacturing footprint and resizing its global cost base to navigate the uncertain economic landscape.

STMicroelectronics Completes Share Buyback Program in July 2025
Jul 21, 2025

On July 21, 2025, STMicroelectronics announced the completion of a share repurchase program conducted from July 14 to July 18, 2025, involving the buyback of 317,741 ordinary shares at a total cost of EUR 8,718,827.95. This initiative, part of a strategy to meet obligations related to share option programs and other allocations, reflects the company’s ongoing efforts to manage its capital structure effectively. The repurchased shares, representing 0.03% of the company’s issued share capital, may be held in treasury or used for other lawful purposes, highlighting STMicroelectronics’ strategic financial management and potential benefits for stakeholders.

STMicroelectronics Completes Share Buy-Back Program in July 2025
Jul 14, 2025

STMicroelectronics announced the completion of a share buy-back program, repurchasing 323,155 ordinary shares between July 7 and July 11, 2025, at an average price of EUR 27.4201 per share, totaling EUR 8,860,951.13. This initiative, part of a program approved in 2024, aims to fulfill obligations related to share option programs and other allocations for employees and management, potentially enhancing shareholder value and market confidence.

STMicroelectronics Completes Share Buyback Program in Early July 2025
Jul 7, 2025

STMicroelectronics announced the completion of a share repurchase program, buying back 202,801 ordinary shares between June 30 and July 4, 2025, at an average price of EUR 26.0578 per share, totaling EUR 5,284,555.36. This move, part of a broader initiative approved in 2024, aims to fulfill obligations related to share option programs and other allocations, potentially impacting the company’s market positioning and shareholder value.

STMicroelectronics Completes Share Buyback Program in June 2025
Jun 23, 2025

STMicroelectronics announced the results of its share repurchase program conducted between June 16 and June 18, 2025. During this period, the company repurchased 164,322 ordinary shares, representing 0.02% of its issued share capital, at an average price of EUR 25.3783 per share, totaling EUR 4,170,210.11. The buyback is part of a strategy to meet obligations related to share option programs for employees and management. This move is expected to strengthen the company’s market position and provide flexibility in managing its capital structure.

STMicroelectronics Completes Share Buy-Back Program in June 2025
Jun 16, 2025

STMicroelectronics announced the results of its share buy-back program for the period from June 9 to June 13, 2025. During this period, the company repurchased 272,000 ordinary shares, representing 0.03% of its issued share capital, at an average price of EUR 25.7675 per share, totaling EUR 7,008,762.80. This initiative is part of the company’s strategy to meet obligations related to share option programs and other allocations to employees and management. The repurchased shares may be held in treasury or used for other lawful purposes, reflecting the company’s ongoing commitment to strategic financial management.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 16, 2025