STMicroelectronics (NYSE:STM) Shares Down 1.6% - Here's Why

Key Points

• STMicroelectronics shares fell 1.6% in Thursday trading, even as volume jumped to about 12.8 million shares, well above the recent average. The stock traded between $74.71 and $78.43 after closing at $79.71.
• The biggest catalyst was bullish business updates tied to AI and data centers: STMicroelectronics raised its 2026 data center revenue target to about $1 billion from “nicely above” $500 million, signaling much stronger-than-expected demand. That helped push the stock to recent highs.
• Wall Street sentiment remains constructive, with several firms boosting price targets, including Mizuho, which raised its target to $84 and kept an Outperform rating. Analysts currently show a Moderate Buy consensus, though the stock has already had a sharp run-up and some reports warn of mixed earnings revisions.

STMicroelectronics N.V. (NYSE:STM - Get Free Report)'s stock price was down 1.6% during mid-day trading on Thursday . The stock traded as low as $74.71 and last traded at $78.4270. Approximately 12,789,946 shares traded hands during trading, an increase of 30% from the average daily volume of 9,842,660 shares. The stock had previously closed at $79.71.

STMicroelectronics News Roundup

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: STMicroelectronics sharply lifted its 2026 data center revenue target to about $1 billion from a prior goal of “nicely above” $500 million, signaling faster-than-expected demand tied to AI infrastructure and helping push the stock to new highs. STMicroelectronics ENXTPA: STMPA Valuation Check After Doubling 2026 Data Center Revenue Target
• Positive Sentiment: Mizuho raised its price target on STM to $68 from $56 and kept an Outperform rating, citing AI server content, 800V power systems, and satellite opportunities as additional growth drivers. Mizuho Raises Price Target on STMicroelectronics (STM) Amid AI and Satellite Growth Opportunities
• Positive Sentiment: STMicroelectronics also highlighted a new high-performance vibration sensor with in-sensor AI for industrial condition monitoring, reinforcing the company’s push into higher-growth edge AI and industrial markets. STMicroelectronics high-performance vibration sensor with in-sensor AI offers a compelling alternative...
• Positive Sentiment: The company joined a €130 million Series A funding round for Quobly, a silicon-based quantum processor startup, which adds to its exposure to emerging compute technologies and innovation-led sentiment. Quobly raises €130 million in Series A led by STMicroelectronics, SEALSQ
• Neutral Sentiment: Large call-option buying in STM suggests traders are positioning for more upside, but it does not provide fundamental confirmation by itself. Investors Buy Large Volume of Call Options on STMicroelectronics NYSE: STM
• Neutral Sentiment: Some coverage notes the stock’s recent surge and questions whether it can keep extending gains, pointing to mixed earnings estimate revisions as a possible headwind after the rally. STMicroelectronics (STM) Moves 15.2% Higher: Will This Strength Last?

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on STM shares. Robert W. Baird set a $90.00 price objective on shares of STMicroelectronics in a report on Friday, April 24th. Morgan Stanley restated an "overweight" rating on shares of STMicroelectronics in a report on Thursday, May 28th. Susquehanna boosted their price objective on shares of STMicroelectronics from $35.00 to $40.00 and gave the stock a "positive" rating in a report on Monday, February 23rd. Bank of America boosted their price objective on shares of STMicroelectronics from $73.00 to $83.00 and gave the stock a "neutral" rating in a report on Tuesday. Finally, Mizuho upped their target price on shares of STMicroelectronics from $68.00 to $84.00 and gave the company an "outperform" rating in a research note on Wednesday. Ten analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, STMicroelectronics presently has an average rating of "Moderate Buy" and a consensus target price of $57.81.

STMicroelectronics Stock Performance

The firm has a market cap of $70.44 billion, a P/E ratio of 490.20 and a beta of 1.94. The stock's 50 day moving average is $51.35 and its two-hundred day moving average is $36.67. The company has a debt-to-equity ratio of 0.12, a current ratio of 3.31 and a quick ratio of 2.34.

STMicroelectronics (NYSE:STM - Get Free Report) last posted its earnings results on Saturday, March 28th. The semiconductor producer reported $0.13 earnings per share for the quarter. The business had revenue of $3.10 billion for the quarter. STMicroelectronics had a net margin of 1.19% and a return on equity of 3.01%. As a group, equities analysts predict that STMicroelectronics N.V. will post 1.09 EPS for the current year.

STMicroelectronics Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Investors of record on Tuesday, September 22nd will be paid a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, September 22nd. This represents a $0.36 dividend on an annualized basis and a yield of 0.5%. STMicroelectronics's payout ratio is presently 193.75%.

Hedge Funds Weigh In On STMicroelectronics

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Van ECK Associates Corp boosted its position in STMicroelectronics by 12.2% in the fourth quarter. Van ECK Associates Corp now owns 10,532,428 shares of the semiconductor producer's stock valued at $273,211,000 after buying an additional 1,145,426 shares in the last quarter. Morgan Stanley boosted its position in STMicroelectronics by 40.6% in the fourth quarter. Morgan Stanley now owns 6,156,161 shares of the semiconductor producer's stock valued at $159,691,000 after buying an additional 1,778,113 shares in the last quarter. Invesco Ltd. boosted its position in STMicroelectronics by 29.9% in the fourth quarter. Invesco Ltd. now owns 5,199,951 shares of the semiconductor producer's stock valued at $134,887,000 after buying an additional 1,196,018 shares in the last quarter. Bank of America Corp DE boosted its position in STMicroelectronics by 43.9% in the second quarter. Bank of America Corp DE now owns 4,348,569 shares of the semiconductor producer's stock valued at $132,240,000 after buying an additional 1,326,020 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its position in STMicroelectronics by 19.1% in the third quarter. JPMorgan Chase & Co. now owns 3,990,874 shares of the semiconductor producer's stock valued at $112,782,000 after buying an additional 641,327 shares in the last quarter. 5.05% of the stock is currently owned by institutional investors and hedge funds.

About STMicroelectronics

STMicroelectronics is a global semiconductor company headquartered in Geneva, Switzerland, formed through the 1987 merger of SGS Microelettronica and Thomson Semiconducteurs. The company designs, develops and manufactures a broad range of semiconductor products and solutions that serve multiple end markets worldwide. ST's offerings span from basic components to integrated systems, emphasizing energy-efficient and high-performance devices for modern electronics.

Product categories include microcontrollers (notably the widely used STM32 family), analog and mixed-signal ICs, power MOSFETs and power-management devices, MEMS and sensors, image sensors, and discrete semiconductors.

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