STMicroelectronics' stock fell 8.49% as it crossed below the 5-day SMA amid a broader market decline, with the Nasdaq-100 down 2.10% and the S&P 500 down 1.27%.
In its Q4 2025 earnings report, STMicroelectronics revealed net revenues of $3.33 billion, a 0.2% year-over-year growth that surpassed analyst expectations. However, the company faced significant challenges, including a 66% drop in operating income and a gross margin decline of 250 basis points year-over-year, primarily due to restructuring costs and currency fluctuations. The CEO indicated that 2026 would be a transition year, with plans to invest between $2.0 billion and $2.2 billion to enhance manufacturing capabilities and free cash flow generation.
The mixed results and outlook may raise concerns among investors, particularly given the significant operating loss and the projected decline in Q1 2026 revenues. The company’s performance in the Analog Products segment was a bright spot, but the sharp decline in the Power and Discrete products segment highlights the unevenness of market demand.
Wall Street analysts forecast STM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STM is 33.25 USD with a low forecast of 25.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
Wall Street analysts forecast STM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STM is 33.25 USD with a low forecast of 25.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 30.330
Low
25.00
Averages
33.25
High
45.00
Current: 30.330
Low
25.00
Averages
33.25
High
45.00
Morgan Stanley
Lee Simpson
Equal Weight
maintain
2026-01-23
Reason
Morgan Stanley
Lee Simpson
Price Target
AI Analysis
2026-01-23
maintain
Equal Weight
Reason
Morgan Stanley analyst Lee Simpson raised the firm's price target on STMicroelectronics to EUR 22 from EUR 20 and keeps an Equal Weight rating on the shares.
Berenberg
Tammy Qiu
Buy
maintain
2026-01-23
Reason
Berenberg
Tammy Qiu
Price Target
2026-01-23
maintain
Buy
Reason
Berenberg analyst Tammy Qiu raised the firm's price target on STMicroelectronics to EUR 29 from EUR 26 and keeps a Buy rating on the shares.
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Mizuho
Neutral
maintain
$26 -> $28
2026-01-09
Reason
Mizuho
Price Target
$26 -> $28
2026-01-09
maintain
Neutral
Reason
Mizuho raised the firm's price target on STMicroelectronics to $28 from $26 and keeps a Neutral rating on the shares. The firm adjusted targets in the semiconductors and semiconductor capital equipment group as part of its 2026 outlook. Mizuho sees continued upside for the group in 2026 due to "attractive valuations," but more modest than 2025. The analyst' top sectors in 2026 are AI accelerators and wafter fab equipment, Optical, and memory, while the firm remains cautious on electric vehicles, autos and analog as well as computers and handsets. Mizuho's top picks for 2026 are Nvidia, Lumentum and Broadcom.
Mizuho
Neutral
maintain
$22 -> $26
2025-12-16
Reason
Mizuho
Price Target
$22 -> $26
2025-12-16
maintain
Neutral
Reason
Mizuho raised the firm's price target on STMicroelectronics to $26 from $22 and keeps a Neutral rating on the shares. The firm adjusted targets in the semiconductors and semiconductor capital equipment group heading into 2026. U.S. electric vehicle sales were down 20%-50% month-over-month in October and November, and 2026 launch cancels and delays will be a headwind in 2026, the analyst tells investors in a research note. Mizuho sees a mixed sector outlook with EV headwinds for the analog and auto component supply chain, with industrials potentially performing better.
About STM
STMicroelectronics N.V. is a Netherlands-based semiconductor company. It designs, develops, manufactures and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs) for analog, digital and mixed-signal applications. The Company's segments include Automotive and Discrete Group (ADG), Analog, MEMS and Sensors Group (AMS), and Microcontrollers and Digital ICs Group (MDG). The ADG segment comprises all dedicated automotive Integrated Circuits (ICs), and discrete and power transistor products. The AMS segment includes low-power analog ICs for all markets, smart power products; Touch Screen Controllers, Low Power Connectivity solutions for Internet of Things (IoT), and power conversion products, among others. The AMS segment comprises general purpose and secure microcontrollers, and Electrically Erasable Programmable Read-Only Memory memories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
