On July 23, STMicroelectronics' stock plunged more than 18%, hitting a low of $53.66, the lowest level since late April this year. The company reported second-quarter net revenue of $3.49 billion, net profit of $222 million, gross profit of $1.22 billion, and a gross margin of 34.8%. It forecasts third-quarter revenue of approximately $3.7 billion, below the analyst consensus expectation of $3.9 billion, with a gross margin of around 37%. Citi analyst Andrew Gardiner noted that the earnings report showed ongoing recovery in end markets such as automotive and industrial, while AI and data center businesses continued to grow rapidly. However, market expectations and valuations have already risen in tandem; with limited upside potential in earnings forecasts, the stock faces near-term downward pressure.
STMicroelectronics stock drops over 18% as Q3 revenue forecast misses estimates
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Summary
STMicroelectronics stock fell more than 18% on July 23, dropping to $53.66, its lowest level since late April. The company reported Q2 net revenue of $3.49 billion and a gross margin of 34.8%. It now forecasts Q3 revenue of $3.7 billion, below the market expectation of $3.9 billion. Analysts note that despite strong growth in AI and data centers, the Fear & Greed Index remains bearish, adding downward pressure on the stock.
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