Wall Street Zen Upgrades STMicroelectronics (NYSE:STM) to "Buy"

Key Points

• Wall Street Zen upgraded STMicroelectronics from “hold” to “buy,” adding to a generally positive analyst backdrop that includes a consensus rating of “Moderate Buy” and a consensus target price of $72.89.
• The company beat Q2 expectations, reporting EPS of $0.31 on revenue of $3.49 billion, helped by stronger AI data-center and industrial demand.
• Despite the earnings beat, shares fell 3.9% as investors focused on softer near-term guidance; the stock opened at $51.39, well below its 52-week high of $81.42.

STMicroelectronics (NYSE:STM - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

Other research analysts also recently issued reports about the stock. Robert W. Baird set a $90.00 price objective on shares of STMicroelectronics in a research report on Friday, April 24th. Morgan Stanley reaffirmed an "overweight" rating on shares of STMicroelectronics in a research note on Tuesday, June 30th. Weiss Ratings upgraded shares of STMicroelectronics from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, May 26th. Zacks Research raised shares of STMicroelectronics from a "hold" rating to a "strong-buy" rating in a research note on Friday, June 26th. Finally, Craig Hallum restated a "buy" rating and issued a $70.00 price objective on shares of STMicroelectronics in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $72.89.

STMicroelectronics Trading Down 3.9%

NYSE STM opened at $51.39 on Friday. The stock has a market cap of $46.16 billion, a P/E ratio of 100.76 and a beta of 1.93. STMicroelectronics has a fifty-two week low of $21.11 and a fifty-two week high of $81.42. The stock has a 50 day simple moving average of $70.12 and a two-hundred day simple moving average of $48.44. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.34 and a current ratio of 3.31.

STMicroelectronics (NYSE:STM - Get Free Report) last posted its earnings results on Thursday, July 23rd. The semiconductor producer reported $0.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.26 by $0.05. The firm had revenue of $3.49 billion for the quarter, compared to analysts' expectations of $3.46 billion. STMicroelectronics had a return on equity of 4.29% and a net margin of 3.56%. On average, analysts forecast that STMicroelectronics will post 1.25 earnings per share for the current year.

Institutional Trading of STMicroelectronics

Several hedge funds and other institutional investors have recently made changes to their positions in STM. Van ECK Associates Corp boosted its holdings 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 worth $273,211,000 after acquiring an additional 1,145,426 shares in the last quarter. Morgan Stanley grew its stake in shares of STMicroelectronics by 40.6% in the fourth quarter. Morgan Stanley now owns 6,156,161 shares of the semiconductor producer's stock worth $159,691,000 after acquiring an additional 1,778,113 shares during the last quarter. Invesco Ltd. increased its holdings in shares of STMicroelectronics by 29.9% during the fourth quarter. Invesco Ltd. now owns 5,199,951 shares of the semiconductor producer's stock valued at $134,887,000 after acquiring an additional 1,196,018 shares in the last quarter. Bank of America Corp DE raised its position in shares of STMicroelectronics by 43.9% in the 2nd quarter. Bank of America Corp DE now owns 4,348,569 shares of the semiconductor producer's stock worth $132,240,000 after purchasing an additional 1,326,020 shares during the last quarter. Finally, FIL Ltd raised its position in shares of STMicroelectronics by 5.0% in the 4th quarter. FIL Ltd now owns 3,107,386 shares of the semiconductor producer's stock worth $80,606,000 after purchasing an additional 146,676 shares during the last quarter. Hedge funds and other institutional investors own 5.05% of the company's stock.

Key STMicroelectronics News

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: STMicroelectronics reported Q2 revenue of $3.49 billion and EPS of $0.31, both above analyst estimates, with results supported by stronger AI data-center and industrial demand. STMicroelectronics (STM) Q2 2026 Earnings Call Transcript
• Positive Sentiment: Management raised its AI data-center revenue ambitions, saying demand, backlog, and product mix are improving and pointing to higher revenue expectations for 2026 and 2027. SpaceX Supplier STMicroelectronics Hikes AI Data-Center Sales Goal Again
• Neutral Sentiment: Market commentary suggests investors are still weighing long-term AI upside against near-term execution issues and a recent pullback in the shares. STMicroelectronics ENXTPA: STMPA Stock May Be Below Fair Value On AI Revenue Ambitions
• Negative Sentiment: The company’s Q3 revenue guidance midpoint came in slightly below market expectations, fueling concerns that near-term growth may not match the enthusiasm around AI spending. STMicro's Q3 revenue view slightly lags estimates even as chip demand recovers
• Negative Sentiment: Several reports noted that shares fell after the earnings release as investors focused on the softer outlook rather than the quarterly beat, with doubts also emerging about the durability of the AI spending boom. STMicroelectronics hit by doubts over AI spending boom

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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