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STMicroelectronics (STM)
NYSE:STM

STMicroelectronics (STM) AI Stock Analysis

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STM

STMicroelectronics

(NYSE:STM)

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Neutral 57 (OpenAI - 4o)
Rating:57Neutral
Price Target:
$23.00
▼(-11.33% Downside)
STMicroelectronics faces significant challenges, particularly in revenue growth and profitability margins, which are reflected in the financial performance score. The technical analysis indicates bearish momentum, further impacting the overall score. While the earnings call highlighted some positive developments, the cautious outlook and high valuation limit the stock's attractiveness.

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

STMicroelectronics Business Overview & Revenue Model

Company DescriptionSTMicroelectronics (STM) is a global semiconductor leader that specializes in the design, development, manufacturing, and marketing of a wide range of semiconductor solutions. The company operates primarily in the automotive, industrial, personal electronics, and communication sectors, providing innovative products such as microcontrollers, sensors, power management devices, and analog ICs. STM is committed to sustainability and energy efficiency, positioning itself as a key player in enabling the Internet of Things (IoT) and smart applications.
How the Company Makes MoneySTMicroelectronics generates revenue primarily through the sale of semiconductor products across various sectors, with a significant focus on automotive, industrial, and consumer markets. Its revenue model is based on direct sales to original equipment manufacturers (OEMs) and distributors, as well as partnerships with technology firms to develop custom solutions. Key revenue streams include microcontrollers, sensors, and power management products, which are essential for modern electronic devices. Additionally, STMicroelectronics benefits from strategic partnerships and collaborations in research and development, enhancing its product offerings and market reach. The company also capitalizes on trends such as electrification in automotive applications and the growing demand for IoT devices, contributing to its earnings and overall growth.

STMicroelectronics Earnings Call Summary

Earnings Call Date:Oct 23, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong revenue performance in Q3 and notable achievements in Automotive and Industrial segments. However, significant challenges remain in the Power & Discrete segment and overall gross margin, with a cautious revenue outlook for Q4.
Q3-2025 Updates
Positive Updates
Revenue Performance
Q3 revenues at $3.19 billion, $17 million above the midpoint of business outlook, with Personal Electronics performing better than expected.
Automotive Growth
Automotive revenues grew about 10% sequentially, with a book-to-bill ratio above 1. Expected mid-single digit growth in Q4.
Industrial Revenue Growth
Industrial revenues increased 8% sequentially and 13% year-over-year, marking a return to year-on-year growth for the first time since Q3 2023.
Free Cash Flow
Generated a positive $130 million free cash flow in Q3.
NXP MEMS Acquisition
Entered into a definitive agreement to acquire NXP's MEMS sensor business for up to $950 million in cash.
Negative Updates
Gross Margin Decline
Gross margin was 33.2%, decreasing 460 basis points year-over-year due to lower manufacturing efficiencies and negative currency effects.
Power & Discrete Segment Performance
Power & Discrete products revenue decreased 34.3% year-over-year, affecting overall segment profitability.
Automotive Market Challenges
Despite sequential growth, Automotive was still down by about 70% year-over-year, attributed to decreased capacity reservation fees and lower volumes from key customers.
Q4 Revenue Outlook Below Seasonality
Guidance for Q4 indicates below seasonal revenue growth of 2.9% due to automotive sector issues and inventory adjustments in Industrial.
Company Guidance
During the third quarter 2025 earnings call, STMicroelectronics provided guidance for Q4 2025, projecting revenues at $3.28 billion, a sequential increase of 2.9%, with a gross margin expected to be around 35%. The company noted a 10% sequential growth in automotive revenues, despite challenges in the Americas, and highlighted strong design activity in industrial applications, contributing to an 8% sequential revenue increase in that segment. The company also managed to reduce inventories, generating $130 million in positive free cash flow. For the full year 2025, STMicroelectronics anticipates revenues of approximately $11.75 billion, translating to a 22.4% growth in the second half compared to the first half, with a gross margin expected to be about 33.8%. The guidance reflects a strategic focus on innovation, reshaping manufacturing capabilities, and optimizing investments.

STMicroelectronics Financial Statement Overview

Summary
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
60
Neutral
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

STMicroelectronics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price25.94
Price Trends
50DMA
25.23
Positive
100DMA
25.94
Negative
200DMA
25.85
Negative
Market Momentum
MACD
0.48
Negative
RSI
55.36
Neutral
STOCH
36.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STM, the sentiment is Neutral. The current price of 25.94 is above the 20-day moving average (MA) of 24.37, above the 50-day MA of 25.23, and above the 200-day MA of 25.85, indicating a neutral trend. The MACD of 0.48 indicates Negative momentum. The RSI at 55.36 is Neutral, neither overbought nor oversold. The STOCH value of 36.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STM.

STMicroelectronics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$21.95B71.203.87%-16.13%-81.06%
71
Outperform
$19.57B15.3010.97%6.12%5.87%-20.93%
69
Neutral
$31.66B29.4511.17%2.33%8.01%10.41%
64
Neutral
$13.16B-207.66-4.42%32.58%-173.04%
63
Neutral
$20.60B-434.65-0.38%0.25%-106.22%
57
Neutral
$23.10B45.603.00%1.30%-17.33%-76.71%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STM
STMicroelectronics
25.55
1.35
5.58%
ASX
ASE Technology Holding Co
14.75
5.09
52.69%
MTSI
MACOM Technology Solutions Holdings
168.31
31.38
22.92%
ON
ON Semiconductor
53.33
-11.47
-17.70%
UMC
United Micro
8.00
1.77
28.41%
GFS
GlobalFoundries Inc
36.25
-5.05
-12.23%

STMicroelectronics Corporate Events

STMicroelectronics Completes Share Buyback Program in November 2025
Dec 1, 2025

On December 1, 2025, STMicroelectronics announced the completion of a share buyback program, repurchasing 206,478 ordinary shares between November 24 and November 25, 2025, at an average price of EUR 19.1345 per share. This buyback, aimed at fulfilling obligations related to employee share options and other allocations, reflects the company’s strategic financial management and its commitment to shareholder value. The shares, representing 0.02% of the issued share capital, may be held in treasury or used for other lawful purposes, indicating flexibility in the company’s capital allocation strategy.

STMicroelectronics Completes Share Buyback Program in November 2025
Nov 24, 2025

STMicroelectronics announced the completion of a share repurchase program from November 17 to November 21, 2025, acquiring 645,149 ordinary shares at an average price of EUR 19.2883, totaling EUR 12,443,841.94. This buyback, conducted on Euronext Paris, is part of the company’s strategy to meet obligations from share option programs and potentially other lawful purposes, reflecting its ongoing commitment to shareholder value and market strategy.

STMicroelectronics Completes Share Buy-Back Program in November 2025
Nov 17, 2025

On November 17, 2025, STMicroelectronics announced the completion of a share buy-back program conducted from November 10 to November 14, 2025. During this period, the company repurchased 459,424 ordinary shares, representing 0.05% of its issued share capital, at an average price of EUR 20.4957 per share, totaling EUR 9,416,236.25. This initiative is part of the company’s strategy to fulfill obligations related to share option programs and other allocations. The repurchased shares may be held in treasury or used for other lawful purposes, reflecting STMicroelectronics’ ongoing efforts to manage its capital structure effectively.

STMicroelectronics Completes Share Buyback Program in November 2025
Nov 10, 2025

On November 10, 2025, STMicroelectronics announced the completion of a share repurchase program conducted from November 3 to November 7, 2025. During this period, the company repurchased 560,000 ordinary shares, representing 0.06% of its issued share capital, at an average price of EUR 20.7751 per share, totaling EUR 11,634,070.50. The purpose of the buyback is to fulfill obligations related to share option programs and other share allocations to employees and management. This strategic move is part of STMicroelectronics’ broader efforts to manage its capital structure and support its long-term financial strategy.

STMicroelectronics Reports Q3 2025 Financial Results
Nov 5, 2025

STMicroelectronics released its financial results for the third quarter and nine months ending September 27, 2025. The company reported net revenues of $3.187 billion for the third quarter, marking a 15.2% sequential increase but a 2.0% year-over-year decline. The gross margin stood at 33.2%, slightly down from the previous year. These results reflect the company’s ongoing efforts to manage its financial performance amid varying market conditions. The report also includes certifications and an analysis of financial operations, providing insights into the company’s strategic positioning and operational adjustments.

STMicroelectronics Completes Share Buyback Program in Late October 2025
Nov 3, 2025

On November 3, 2025, STMicroelectronics announced the completion of a share repurchase program, buying back 347,647 ordinary shares between October 27 and October 31, 2025. This repurchase, amounting to approximately EUR 7.5 million, represents 0.04% of the company’s issued share capital and is part of a strategy to meet obligations related to share option programs for employees and management. The move is aligned with the company’s broader financial strategies and regulatory compliance, potentially impacting shareholder value and market perception.

STMicroelectronics Completes Share Buy-Back Program in October 2025
Oct 27, 2025

On October 27, 2025, STMicroelectronics announced the completion of a share buy-back program conducted between October 20 and October 24, 2025. During this period, the company repurchased 379,674 ordinary shares, representing 0.04% of its issued share capital, at an average price of EUR 23.8269 per share, totaling EUR 9,046,447.55. The repurchase aims to fulfill obligations related to share option programs and other allocations to employees and management. This strategic move is part of the company’s broader efforts to manage its capital structure and enhance shareholder value.

STMicroelectronics Announces Q3 2025 Financial Results Amid Market Challenges
Oct 23, 2025

On October 23, 2025, STMicroelectronics announced its third-quarter financial results, reporting net revenues of $3.19 billion, a slight decrease of 2.0% year-over-year. Despite a challenging market environment, the company achieved a gross margin of 33.2% and net income of $237 million. The company anticipates a sequential revenue increase in the fourth quarter, with a forecasted gross margin improvement to 35.0%. STMicroelectronics is focusing on optimizing investments and reshaping its manufacturing footprint to enhance operational efficiency and strengthen cash flow generation.

STMicroelectronics Announces Key Board Appointments Ahead of December Meeting
Oct 23, 2025

On October 23, 2025, STMicroelectronics announced the resolutions to be proposed at its Extraordinary General Meeting of Shareholders, scheduled for December 18, 2025, in Amsterdam. The Supervisory Board has proposed the appointments of Armando Varricchio and Orio Bellezza to the Supervisory Board, replacing Maurizio Tamagnini and Paolo Visca, who resigned earlier in the year. This meeting and the proposed changes are significant for the company’s governance structure, potentially impacting its strategic direction and stakeholder relationships.

STMicroelectronics Completes Share Buyback Program in October 2025
Oct 20, 2025

On October 20, 2025, STMicroelectronics announced the completion of a share buyback program conducted between October 13 and October 17, 2025. During this period, the company repurchased 292,850 ordinary shares, representing 0.03% of its issued share capital, at a total cost of EUR 7,188,651.84. The buyback was part of a strategy to fulfill obligations related to share option programs and other allocations to employees and management. This move reflects the company’s ongoing efforts to manage its capital structure and provide value to its stakeholders.

STMicroelectronics Completes Share Buyback Program in October 2025
Oct 14, 2025

On October 13, 2025, STMicroelectronics announced the completion of a share repurchase program conducted from October 6 to October 10, 2025. During this period, the company bought back 399,335 ordinary shares, representing 0.04% of its issued share capital, at an average price of EUR 24.5965 per share, totaling EUR 9,822,245.18. This buyback is part of a strategy to fulfill obligations related to share option programs and other allocations to employees and management. The repurchase program reflects STMicroelectronics’ ongoing efforts to manage its capital structure effectively and meet regulatory requirements.

STMicroelectronics Completes Share Buyback Program in Early October 2025
Oct 6, 2025

On October 6, 2025, STMicroelectronics announced the completion of a share repurchase program, acquiring 300,000 ordinary shares between September 29 and October 3, 2025, at an average price of EUR 24.2820 per share, totaling EUR 7,284,600. This buyback, representing 0.03% of its issued share capital, is part of a strategy to fulfill obligations related to share option programs for employees and management. The repurchase enhances the company’s ability to manage its capital structure and potentially improve shareholder value.

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

On August 11, 2025, STMicroelectronics announced the completion of a share repurchase program conducted from August 4 to August 8, 2025, where it bought back 290,000 shares, representing 0.03% of its issued share capital, for approximately EUR 6.26 million. This initiative, part of a previously announced buy-back program, aims to fulfill obligations related to employee share options and other allocations. The transactions reflect the company’s strategic financial management and its commitment to optimizing shareholder value.

STMicroelectronics Completes Share Buyback Program in Early August 2025
Oct 2, 2025

On August 4, 2025, STMicroelectronics announced the completion of a share repurchase program conducted between July 28 and August 1, 2025, acquiring 733,818 ordinary shares at an average price of EUR 22.7310 per share, totaling EUR 16,680,419.09. This buyback, part of a program approved in 2024, aims to fulfill obligations related to share option programs and other allocations for employees and company officials. The repurchase reflects the company’s strategic financial management and its commitment to enhancing shareholder value.

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: Nov 19, 2025