STMicroelectronics N.V. (STM) - Stock Analysis
Last updated: Jan 14, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
STMicroelectronics presents positive Q3 guidance with increased bookings, manufacturing efficiencies, and strategic acquisitions. The stock exhibits solid technical momentum (+5.5% over 21 days, trading above 21-day SMA) and scheduled Q3 results on Oct 23 could reinforce upside potential.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Strong liquidity ⢠Falling margins ⢠Heavy capex Strong liquidity and low leverage contrast with weakening margins, sharply lower EPS, and heavy capex driving FY negative free cash flowârisky near-term profitability despite a tangible-book buffer.
Price Behavior
Key Price Behavior Insights: ⢠Steady recovery ⢠Near-term resistance ⢠Elevated volatility Support Level: $25.90â$26.20 Resistance Level: $29.40 Over the last month STM has displayed a moderately bullish uptrendârising from about $25.94 to $28.43âbacked by a steady recovery since December with support near $25.90â$26.20 and resistance around $29.40, though a sharp drop from >$30 to ~$22 in November signals elevated reversal risk.
Sentiment & News
Key News Insights: ⢠SpaceX shipments ⢠Humanoid automation ⢠Earnings due STMicroelectronics is expanding its SpaceX RF chip supply, pioneering humanoid-robot factory automation and board continuity while markets await its Q4/2025 earnings.
AI Summary
STM's pivot into higherâvalue industrial and automotive products (SiC, MEMS/NXP, STM32 AI, SpaceX wins) meaningfully raises longâterm optionality, but nearâterm returns are binary on flawless 300mm/SiC ramps and smooth MEMS integrationâwatch for sustained gross margins > midâ30s and durable positive FCF as explicit go/noâgo triggers. If those metrics emerge, re-rate exposure; if yields, integration or destocking falter, materially deârisk.
Description
STMicroelectronics N.V. designs, develops, manufactures and sells a broad range of semiconductor products worldwide, organized into Automotive and Discrete; Analog, MEMS and Sensors; and Microcontrollers and Digital ICs business groups. Its portfolio includes automotive ICs and power transistors, analog and mixed-signal components, MEMS and optical sensors, microcontrollers and RF devices, alongside assembly and related services, which it distributes through wholesalers, retailers and direct sales representatives. The company serves automotive, industrial, consumer electronics, communications and computing markets and is headquartered in Schiphol, the Netherlands, with operations dating back to 1987.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Oct 20 | Oct 27 | STM | STMicroelectronics N.V. | STMicroelectronics presents positive Q3 guidance with increased bookings, manufacturing efficiencies, and strategic acquisitions. The stock exhibits solid technical momentum (+5.5% over 21 days, trading above 21-day SMA) and scheduled Q3 results on Oct 23 could reinforce upside potential. | Closed | -15.7% |