STMicroelectronics Better Than Its Multiple Suggests

Stephen Simpson profile picture
Stephen Simpson


  • STMicroelectronics posted modestly better than expected fourth quarter results and guided for a less-bad first quarter.
  • Strong growth in EV production will support the auto business, but a wider slowdown in industrial end-markets could put some revenue at risk despite MCU share growth.
  • STMicroelectronics still offers excellent leverage to mass-electrification trends in auto and industrial markets, as well as exposure to growth opportunities in GaN RF, IoT, and sensing.
  • Long-term revenue growth of 7% and an operating margin of 30%-plus aren't modest assumptions but do support an attractive total return from here.

Top of the STMicroelectronics building in Paris, France


Reputations die hard, and STMicroelectronics' (NYSE:STM) ("STMicro") reputation as a lackluster, relatively undifferentiated, semiconductor (and worse, a French semiconductor company) has continued long past its point of relevance. STMicro is poised for continued leadership in high-end power (autos and

This article was written by

Stephen Simpson profile picture
Stephen Simpson is a freelance financial writer and investor. Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds); now a semi-retired raccoon rancher. That last part isn't entirely true. Probably.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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