STMicroelectronics reports Q4 revenue of $3.28 billion, falling short of the $3.38 billion consensus estimate.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 23 2025
0mins
Should l Buy STM?
- Q4 Gross Margin Forecast: The company anticipates a gross margin of 35% for the fourth quarter.
- Impact of Trade Tariffs: The business outlook does not account for any potential changes to global trade tariffs from the current situation.
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Analyst Views on STM
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
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 29.850
Low
25.00
Averages
33.25
High
45.00
Current: 29.850
Low
25.00
Averages
33.25
High
45.00
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.
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- Executive Departures Impact: The immediate departure of CFO David Wyshner and General Counsel Edward Sebold indicates potential internal management issues, which could exacerbate market concerns regarding the company's governance structure.
- Cleveland-Cliffs Poor Performance: Cleveland-Cliffs reported a wider-than-expected adjusted EBITDA loss of $21 million, primarily due to weakness in the auto and Canadian markets; although the company anticipates improvements by 2026, it still faces short-term market challenges.
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- Chip Shipment Milestone: STM has shipped over 5 billion chips to SpaceX during their decade-long partnership, a scale rarely achieved among aerospace suppliers, showcasing STM's robust supply capabilities in high-tech sectors.
- Rising Lunar Launch Demand: As Musk shifts to a faster 10-day lunar launch cycle, the demand for reliable, power-efficient, and radiation-tolerant electronics is increasing, further solidifying STM's technological prowess in this critical area.
- Amazon's Strategic Investment: Amazon's AWS inked a multi-billion-dollar deal with STM, including warrants that could grant Amazon nearly a 3% stake, emphasizing STM's significance in securing supply for hyperscale AI data centers.
- Positive Market Reaction: Following the Amazon news, STM's stock jumped over 9% in pre-market trading on Monday, indicating market recognition of STM's transformation from an automotive chipmaker to a strategic linchpin, with investors optimistic about its dual opportunities in aerospace and AI.
See More
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- Oracle Stock Rise: Oracle shares increased by 2% after DA Davidson upgraded its rating from neutral to buy, with analysts believing that a revamped OpenAI will regain its position as Google's top competitor, enhancing collaboration potential with Oracle.
- STMicroelectronics Partnership Expansion: STMicroelectronics saw a 7% stock increase following a multi-billion-dollar partnership announcement with Amazon Web Services to support infrastructure for cloud and AI data centers, which is expected to drive future revenue growth for the company.
- Kroger CEO Transition: Kroger's shares jumped nearly 5% after the Wall Street Journal reported that former Walmart executive Greg Foran will be appointed as the new CEO, indicating a potential strategic shift that could enhance the company's performance in a competitive retail market.
- Hims & Hers Health Crisis: Hims & Hers stock plummeted 18% after it withdrew its copycat weight-loss pill following legal threats from Novo Nordisk, highlighting the importance of intellectual property in the market and potentially impacting Hims & Hers' future product strategy.
See More
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- Stock Performance: STMicroelectronics shares rose 4.3% in pre-market trading to $31.13, indicating optimistic market sentiment regarding the company's future performance, which may attract more investor interest.
- Market Dynamics: The upward trend in STMicroelectronics' stock could influence the performance of other related tech stocks, particularly in the semiconductor sector, further boosting investor confidence in the industry.
- Investor Sentiment: As the stock price increases, investor sentiment may become more positive, leading to increased capital inflow and enhancing the company's market position.
- Future Outlook: The rise in STMicroelectronics' stock price may signal positive developments in the company's technological innovation and market demand, further solidifying its competitiveness in the global semiconductor market.
See More
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- Strategic Partnership Expansion: STMicroelectronics has announced a multi-year, multi-billion-dollar commercial agreement with Amazon Web Services (AWS) to support the development of next-generation high-performance compute infrastructure, thereby enhancing capabilities for cloud and AI data centers.
- Warrant Issuance: Under the agreement, STM issued warrants to AWS for the acquisition of up to 24.8 million ordinary shares, which will vest in tranches tied to payments for STM products and services, positioning STM as a key player in the semiconductor supply chain.
- Comprehensive Technology Solutions: The collaboration encompasses a wide range of semiconductor solutions from STMicroelectronics, including high-bandwidth connectivity, advanced microcontrollers, and analog and power ICs, aimed at addressing the increasing demands for compute performance and efficiency in hyperscale data centers.
- Financial Outlook and Market Reaction: While STMicroelectronics reported fourth-quarter net revenues of $3.329 billion, surpassing analyst expectations, its adjusted EPS of 11 cents fell short of the 25 cents forecast; however, the stock rose 4.22% in premarket trading, reflecting market optimism about its growth potential.
See More
U.S. Stock Futures Decline Amid Cautious Market Sentiment
- Market Sentiment Dips: Following a strong rebound on Friday, U.S. stock futures declined on Monday, reflecting cautious market sentiment amid concerns over upcoming economic data, particularly regarding inflation and labor market changes.
- Japanese Market Surge: The Nikkei 225 index broke the 57,000-point barrier for the first time, driven by Prime Minister Sanae Takaichi's landslide election victory and a high-profile endorsement from Trump, indicating a robust recovery in Japan that may attract more international investors.
- Stable Treasury Yields: The 10-year Treasury bond yield stood at 4.22%, while the two-year yield was at 3.50%, suggesting market expectations for the Federal Reserve's future interest rate policy are stabilizing, with an 84.2% likelihood of rates remaining unchanged in March.
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