STM

Earnings Release Announcement: STMicroelectronics will release its first quarter 2025 earnings on April 24, 2025, before European stock market opening, followed by a conference call at 9:30 a.m. CET to discuss the results and business outlook.

Company Overview: STMicroelectronics is a leading semiconductor manufacturer focused on sustainable technology solutions, aiming for carbon neutrality in emissions and 100% renewable electricity sourcing by the end of 2027.

Strategic Partnership: STMicroelectronics and Innoscience have partnered to develop gallium nitride (GaN) technology for next-generation power electronics, enhancing applications in AI data centers, renewable energy, and electric vehicles.

Manufacturing Collaboration: The partnership will leverage STMicroelectronics' European manufacturing sites and Innoscience's fabrication facilities in China to improve supply chain reliability and produce efficient GaN power solutions.

STMicroelectronics Stock Performance: STMicroelectronics NV shares have reached an oversold level with an RSI of 28.5, indicating potential buying opportunities as the stock trades around $19.60, close to its 52-week low of $19.525.

Market Comparison: The current RSI for the S&P 500 ETF is 30.4, suggesting that STM's recent heavy selling may be nearing exhaustion, prompting bullish investors to consider entry points.

Joint Development Agreement: STMicroelectronics and Innoscience have signed a Joint Development Agreement to enhance GaN (gallium nitride) technology for applications in power electronics, including AI datacenters, renewable energy, and automotive systems.

Manufacturing Collaboration: The agreement allows Innoscience to utilize ST's manufacturing capacity in Europe while ST can leverage Innoscience's facilities in China, aiming to improve supply chain resilience and expand their offerings in GaN technology.

STMicroelectronics and Innoscience Partnership: STMicroelectronics and Innoscience have signed an agreement to collaborate on GaN technology development and manufacturing, aiming to enhance GaN power solutions for various applications including consumer electronics and automotive systems.

Manufacturing Capacity Utilization: The agreement allows Innoscience to use ST's front-end manufacturing capacity outside China for GaN wafers, while ST can utilize Innoscience’s manufacturing capacity in China for its own GaN wafers, promoting supply chain resilience.

Analyst Rating: Janardan Menon from Jefferies has maintained a Buy rating on STMicroelectronics NV with a price target of €34.00, while the current analyst consensus is a Moderate Buy with an average price target of €27.04.

Stock Performance: STMicroelectronics NV's shares closed at €21.29, with a one-year high of €45.42 and a low of €20.63, and the company has an average trading volume of 2.24 million shares.

ETF Analyst Target Price Insights: The First Trust BuyWrite Income ETF (FTHI) has an implied analyst target price of $26.09, indicating a potential upside of 17.94% from its current trading price of $22.12.

Stock Performance and Analyst Expectations: Notable underlying holdings like OPENLANE Inc., BlackBerry Ltd, and STMicroelectronics NV show significant upside potential based on analysts' target prices, raising questions about the validity of these targets in light of recent market developments.

Italian Government's Influence on STMicroelectronics: Marcello Sala, an Italian government official, is expected to join the supervisory board of STMicroelectronics, with potential nominations for Simonetta Acri as well. This move comes amid discussions within the Italian government about replacing the current CEO due to perceived poor performance.

Ownership and Stake in STMicroelectronics: STMicroelectronics is a joint venture between France and Italy, each holding a 27.5% stake, resulting from a merger of state-owned companies in 1987. The supervisory board's role includes overseeing the board of directors and providing advisory support.

Proposed Resolutions for AGM: STMicroelectronics announced resolutions to be presented at the 2025 Annual General Meeting, including the adoption of annual accounts, cash dividend distribution, and appointments to the Supervisory Board.

Sustainability Commitment: The company aims to achieve carbon neutrality in all direct and indirect emissions by 2027 and is focused on renewable electricity sourcing, while also providing detailed information about the AGM on their website.

Impact of U.S. Tariffs on European Hardware Companies: Bank of America identified Logitech, STMicroelectronics, Nokia, and Ericsson as highly exposed to U.S. tariffs, with Logitech relying heavily on U.S. sales and imports from China, while STMicro's sales are primarily from Europe and Asia.

Consumer Behavior Changes Due to Tariffs: Analysts predict that potential tariff increases may lead consumers to opt for cheaper goods, as historical trends show limited ability for companies to pass on costs, resulting in a shift towards products with lower semiconductor content.

EU Coalition Calls for Enhanced Chips Act: A coalition of nine EU nations is urging the European Commission to improve and expedite the 2023 Chips Act, which aims to strengthen Europe's semiconductor industry and address supply chain issues.

Funding Allocation Concerns: The coalition emphasizes the need for timely allocation of both public and private funds to ensure that small and medium-sized companies benefit from the semiconductor sector's growth.

Resignation Announcement: Maurizio Tamagnini has resigned from the Supervisory Board of STMicroelectronics, effective immediately. He had been a member since 2014 and served as Vice-Chairman since 2023.

Company Overview: STMicroelectronics is a leading semiconductor manufacturer focused on sustainable technology solutions, aiming for carbon neutrality in all emissions by 2027 and utilizing renewable electricity.

Resignation Announcement: Maurizio Tamagnini has resigned from STMicroelectronics' Supervisory Board effective immediately, having served since 2014 and held the position of Vice-Chairman since 2023.

Acknowledgment of Service: Nicolas Dufourcq, Chairman of the Supervisory Board, expressed gratitude for Tamagnini's long-term contributions to the company.

Company Overview: ON Semiconductor Corporation, valued at $18.6 billion, specializes in energy-efficient semiconductor solutions for industries like automotive and communications but has faced significant stock declines, dropping 45.8% from its 52-week high due to slowing markets and a projected revenue decline of 14% in 2024.

Recent Developments: The company made a $6.9 billion acquisition offer for Allegro MicroSystems, which was rejected, leading to a drop in ON's shares; despite current struggles, analysts maintain a "Moderate Buy" rating with a target price suggesting a potential upside of 40.9%.

Share Repurchase Program Details: STMicroelectronics announced the repurchase of 427,820 ordinary shares from March 3 to March 7, 2025, at an average price of EUR 22.9028, totaling approximately EUR 9.8 million, as part of its share repurchase program approved in May 2024.

Purpose and Future Use of Shares: The repurchased shares are intended to fulfill obligations related to employee share options and may be held in treasury for future use or other lawful purposes under market regulations.

STMicroelectronics Implements Black Duck Solutions: STMicroelectronics has successfully integrated Black Duck Software Composition Analysis (SCA) and Coverity Static Analysis to enhance software security practices, automate software bill of materials (SBOM) generation, and comply with the European Cyber Resilience Act.

Black Duck's Role in Application Security: Black Duck provides a comprehensive suite of application security solutions that help organizations manage open-source risks and ensure compliance with evolving regulatory requirements, reinforcing cybersecurity strategies in industries like microcontrollers.

New Microcontrollers Launch: STMicroelectronics has introduced the STM32WBA6 wireless microcontrollers, designed for power-efficient and cost-effective applications in smart home, health, factory, and agriculture sectors, featuring enhanced memory and security capabilities.

Enhanced Connectivity Features: The STM32WBA6 series supports multiple 2.4GHz wireless protocols like Bluetooth and Zigbee, allowing for concurrent communication, and is equipped with advanced digital interfaces to facilitate sophisticated IoT device development.

Partnership Announcement: Trimble Inc. has partnered with STMicroelectronics to develop advanced positioning technologies for the automotive and IoT sectors, aiming to enhance development speed and reduce costs for OEMs.

Technological Integration: The collaboration combines Trimble’s ProPoint Go engine with STMicroelectronics’ Teseo VI GNSS chipsets to provide accurate location data for applications like automotive navigation and automated driving systems, ensuring precision even in challenging environments.

New Module Features: STMicroelectronics has announced the certification of its ST87M01 NB-IoT and geolocation module for Deutsche Telekom networks, now featuring Wi-Fi positioning for improved indoor and urban geolocation capabilities.

Demonstrations and Compliance: The module will be showcased at upcoming events, highlighting its Remote SIM Provisioning capabilities and compliance with GSMA standards, ensuring flexibility for IoT applications across Europe.

Collaboration Announcement: Trimble (TRMB) is partnering with STMicroelectronics (STM) to provide precise positioning solutions for automotive and IoT applications, integrating Trimble ProPoint Go with STM's Teseo VI GNSS chipsets.

Stock Performance Insights: Recent reports highlight positive growth for Trimble, with analysts raising price targets and noting strong financial performance for 2024 and guidance for 2025.