Analyst Didier Scemama from Bank of America Securities maintained a Hold rating on STMicroelectronics NV and increased the price target to €32.00 from €30.00.
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Didier Scemama has given his Hold rating due to a combination of factors tied to both growth prospects and profitability dynamics. He acknowledges that STMicroelectronics is well positioned to benefit from accelerating demand in AI data centers, with a sizable serviceable market in power and silicon photonics and a multi‑year roadmap that should significantly lift AI‑related revenues toward the latter part of the decade.
However, he also highlights that realizing this opportunity requires substantial investment, which raises fixed costs and capital intensity and in turn constrains margin expansion. In AI power, he remains cautious because STM is a relatively newer player at 800V, faces strong incumbents with deeper capabilities in key materials like GaN and silicon, and must execute large 300mm capacity expansions. As a result, despite attractive long‑term growth drivers and a price objective above the current share price, the risk‑reward profile appears balanced rather than compelling, justifying a Neutral stance.
Scemama covers the Technology sector, focusing on stocks such as ASML Holding, STMicroelectronics NV, and Logitech. According to TipRanks, Scemama has an average return of 5.7% and a 47.83% success rate on recommended stocks.
In another report released on March 3, TipRanks – Google also reiterated a Hold rating on the stock with a €30.00 price target.