Stock Price & Analysis

Based on recent market data and analyst reports, STM shows mixed signals. The stock has experienced recent downgrades and faces margin pressures, but Morgan Stanley has upgraded it to Equal Weight with recovery expectations for 2026. Technical analysis indicates a short-term downtrend with recent stabilization attempts.

Recent Key Developments:

• Morgan Stanley upgraded STM to Equal Weight from Underweight, projecting Q1 sales to decrease by 24% QoQ
• Bernstein downgraded to Market Perform citing "no clear bottom in sight"
• Facing challenges in industrial sector and European automotive market with high channel inventories

Technical Analysis:

• Stock is trading near support levels around $44-45
• Volume patterns show increased selling pressure
• RSI indicates oversold conditions, suggesting potential short-term bounce

Recommendation: HOLD STM stock at current levels. While long-term recovery potential exists for 2026, near-term headwinds including margin pressure, high channel inventories, and weak demand in key segments suggest limited upside potential in the immediate future.

Based on the provided data and recent analyst reports, here's the price prediction for STM stock in 2025:

STMicroelectronics (STM) is expected to trade around $23-25 by the end of 2025, with multiple analysts recently lowering their price targets due to cyclical headwinds and margin pressures. The semiconductor company faces challenges in the industrial sector and European automotive market, with analysts projecting continued pressure on revenue and margins throughout 2025.

Despite near-term challenges, some analysts maintain a more optimistic long-term view with potential upside to $28, citing opportunities in SiC, GaN, and 32-bit MCU technologies, along with strong design-in momentum in China.

The S1 support level for STM Stock is $22.79 ,The R1 resistant level for STM Stock is $27.35.

As of the end of day on 2025-02-21, the price of STM Stock was $27.66.

The target price for STM Stock according to analyst rating is 25.69, with the highest price target at 28.00 and the lowest at 23.00. Analysts have a Hold rating on STM Stock overall.

The market cap of STM is $25.1B.

Based on the provided data and recent market analysis, STM appears to be fairly valued at current levels. Here's why:

Technical Analysis STM is currently trading at $24.48, showing signs of stabilization after a significant decline. The RSI at 54.75 indicates neutral momentum, while the stock is trading between its key Fibonacci support of $21.71 and resistance of $24.24.

Recent Analyst Updates Morgan Stanley recently upgraded STM to Equal Weight from Underweight, citing:

• Expectation of cyclical dynamics troughing by September quarter
• Market focus shifting toward potential 2026 recovery
• Fair value estimate of €22 based on FY26 EPS of $1.62 at 14x multiple

Current Challenges

• Q1 2025 sales projected to decrease by 24% quarter-over-quarter
• Ongoing margin pressure and weak SiC sales
• Full channel inventory and contract price reset issues
• Tough channel dynamics in automotive and industrial MCUs

Valuation Metrics

• Trading at P/E of 9.64x, significantly below industry average of 70.22x
• P/B ratio of 1.26x vs industry average of 10.41x
• Current price represents a 15% discount to Morgan Stanley's fair value estimate

Growth Outlook

• Revenue forecast shows -3.22% growth
• Earnings expected to decline -14.62%
• Long-term recovery potential supported by:
  • Recent design wins in China
  • Ongoing cost-saving programs
  • Strategic investments in growth areas

Based on these factors, STM appears fairly valued at current levels, with near-term headwinds balanced by long-term recovery potential. The stock is trading at reasonable multiples compared to peers, but faces significant cyclical challenges through 2025.

A merger between Italian firm SGS Microelettronica and the nonmilitary business of Thomson Semiconductors in France formed STMicroelectronics in 1987. STMicroelectronics is a leader in a variety of semiconductor products, including analog chips, discrete power semiconductors, microcontrollers, and sensors. It is an especially prominent chip supplier to the industrial and automotive industries.

Based on the available data and analyst reports, here's the 2030 price prediction for STM stock:

STMicroelectronics (STM) stock is projected to reach $61.86 by 2030, driven by the company's strategic target of achieving $20 billion plus revenue by 2030 with operating margins exceeding 30% [2, 3]. The company's strong position in China's automotive market and growing presence in AI-specific segments, particularly in power chips for data centers and edge AI applications, supports this growth trajectory.

STM has a total of 51323 employees.