Didier Scemama, an analyst from Bank of America Securities, reiterated the Hold rating on STMicroelectronics NV. The associated price target is €30.00.
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Didier Scemama has given his Hold rating due to a combination of factors tied to STMicroelectronics’ evolving AI strategy and its current valuation. He expects management to accelerate their AI revenue target to reach roughly $1bn by 2028, supported by growth in silicon photonics for datacenter interconnects and a wide power-semiconductor portfolio, but this ramp is gradual and comes from a relatively small base.
Scemama also notes that while STM’s role as a foundry partner for AWS should help utilize excess capacity and drive top-line growth, the associated warrant structure likely erodes pricing and compresses gross margins into the low‑30s percent range. In addition, he views opportunities in “physical AI,” such as humanoid robots and edge AI components, as strategically important but not sufficiently material over the next five years, which, combined with a share price already close to his €30 price objective, supports maintaining a Neutral stance rather than a more aggressive rating.
According to TipRanks, Scemama is a 4-star analyst with an average return of 7.9% and a 50.00% success rate. Scemama covers the Technology sector, focusing on stocks such as ASML Holding, Logitech, and STMicroelectronics NV.