United Microelectronics Corp (UMC) saw its stock drop by 9.17% as it crossed below the 5-day SMA, reflecting investor concerns following its Q4 earnings report.
In its Q4 2025 earnings report, UMC reported a revenue of NT$61.81 billion, a 2.4% year-over-year increase, but its earnings per share of $0.129 fell short of analyst estimates, indicating profitability pressures. Despite the revenue growth, the company faces challenges in maintaining production capacity and has projected flat wafer shipments for Q1 2026, which has raised concerns among investors about future growth prospects.
The mixed results have led to a cautious outlook for UMC, as it navigates a challenging semiconductor market. While the company remains optimistic about growth in 2026, driven by advanced packaging and silicon photonics, the immediate market reaction has been negative, contributing to the stock's decline.
Wall Street analysts forecast UMC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for UMC is 5.50 USD with a low forecast of 4.80 USD and a high forecast of 6.20 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 Analyst Rating
Wall Street analysts forecast UMC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for UMC is 5.50 USD with a low forecast of 4.80 USD and a high forecast of 6.20 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.
0 Buy
0 Hold
2 Sell
Moderate Sell
Current: 11.380
Low
4.80
Averages
5.50
High
6.20
Current: 11.380
Low
4.80
Averages
5.50
High
6.20
KGI Securities
Underperform -> Neutral
upgrade
$70
2026-01-28
New
Reason
KGI Securities
Price Target
$70
AI Analysis
2026-01-28
New
upgrade
Underperform -> Neutral
Reason
KGI Securities upgraded UMC to Neutral from Underperform with a NT$70 price target.
BNP Paribas
Alex Chang
Neutral -> Underperform
downgrade
$8.60
2026-01-28
New
Reason
BNP Paribas
Alex Chang
Price Target
$8.60
2026-01-28
New
downgrade
Neutral -> Underperform
Reason
BNP Paribas analyst Alex Chang downgraded UMC to Underperform from Neutral with an $8.60 price target.
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JPMorgan
Gokul Hariharan
Neutral -> Underweight
downgrade
$41 -> $50
2026-01-28
New
Reason
JPMorgan
Gokul Hariharan
Price Target
$41 -> $50
2026-01-28
New
downgrade
Neutral -> Underweight
Reason
JPMorgan analyst Gokul Hariharan downgraded UMC to Underweight from Neutral with a price target of NT$50, up from NT$41. The firm warns that the stock's recent 50% rally is unlikely to be met by strong EPS upgrades led by price increases or utilization improvement, the analyst tells investors in a research note. With 70% exposure to communications and consumer, UMC will not see a steady utilization ramp into the second half of FY26 given the weaker demand outlook for PC and smartphone segments, JPMorgan added.
BofA
Buy -> Underperform
downgrade
$49 -> $37
2025-11-11
Reason
BofA
Price Target
$49 -> $37
2025-11-11
downgrade
Buy -> Underperform
Reason
BofA downgraded UMC to Underperform from Buy with a price target of NT$37, down from NT$49. The firm is citing the lack of meaningful average selling price increases and pressured margins into 2026-27, the analyst tells investors in a research note.
About UMC
United Microelectronics Corp is a global semiconductor foundry. The Company provides integrated circuit (IC) production for applications spanning every sector of the electronics industry. The Company operates through two segments. The Wafer Fabrication segment is mainly engaged in the manufacture of chips to the design specifications of its customers by using its own processes and techniques. The New Business segment is engaged in the research, development, manufacture and provision of solar energy. The Company is engaged in the maintenance of a customer base across various industries, including communication, consumer electronics, computer, memory, new generation light-emitting diode (LED) and others, while focusing on manufacturing for applications, including networking, telecommunications, Internet, multimedia, personal computers (PCs) and graphics.
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.
