STMicroelectronics (NYSE:STM) Shares Gap Down – Should You Sell?

STMicroelectronics N.V. (NYSE:STM)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $65.77, but opened at $54.40. STMicroelectronics shares last traded at $55.4480, with a volume of 8,916,531 shares traded.

STMicroelectronics News Roundup

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

Analyst Upgrades and Downgrades

Several research firms have recently commented on STM. Zacks Research raised shares of STMicroelectronics from a “hold” rating to a “strong-buy” rating in a research note on Friday, June 26th. Susquehanna upped their target price on shares of STMicroelectronics from $60.00 to $75.00 and gave the stock a “positive” rating in a research note on Tuesday. TD Cowen reaffirmed a “hold” rating on shares of STMicroelectronics in a research note on Monday, July 13th. Weiss Ratings upgraded shares of STMicroelectronics from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, May 26th. Finally, Mizuho decreased their price target on shares of STMicroelectronics from $84.00 to $80.00 and set an “outperform” rating for the company in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $72.89.

STMicroelectronics Stock Down 3.9%

The business has a 50-day simple moving average of $70.12 and a 200-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. The company has a market cap of $46.16 billion, a price-to-earnings ratio of 100.76 and a beta of 1.93.

STMicroelectronics (NYSE:STM) last released its earnings results on Thursday, July 23rd. The semiconductor producer reported $0.31 earnings per share for the quarter, topping analysts’ consensus estimates of $0.26 by $0.05. The firm had revenue of $3.49 billion for the quarter, compared to analyst estimates of $3.46 billion. STMicroelectronics had a net margin of 3.56% and a return on equity of 4.29%. On average, equities analysts anticipate that STMicroelectronics N.V. will post 1.25 earnings per share for the current fiscal year.

Institutional Investors Weigh In On STMicroelectronics

A number of hedge funds and other institutional investors have recently modified their holdings of STM. Van ECK Associates Corp boosted its position in shares of STMicroelectronics by 12.2% during the 4th 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 increased its holdings in shares of STMicroelectronics by 40.6% in the 4th quarter. Morgan Stanley now owns 6,156,161 shares of the semiconductor producer’s stock valued at $159,691,000 after acquiring an additional 1,778,113 shares during the last quarter. Invesco Ltd. raised its position in shares of STMicroelectronics by 29.9% during the 4th quarter. Invesco Ltd. now owns 5,199,951 shares of the semiconductor producer’s stock worth $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% during 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 acquiring an additional 1,326,020 shares in the last quarter. Finally, FIL Ltd raised its position in shares of STMicroelectronics by 5.0% during the 4th quarter. FIL Ltd now owns 3,107,386 shares of the semiconductor producer’s stock worth $80,606,000 after acquiring an additional 146,676 shares in the last quarter. 5.05% of the stock is currently owned by institutional investors and hedge funds.

STMicroelectronics Company Profile

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.