STMicroelectronics share price declines further: -28.75% in three months
The Franco-Italian-Dutch semiconductor manufacturer is trading in negative territory on Thursday, in a market environment marked by an anticipated interest rate hike from the ECB and a surge in Brent crude above 100 dollars. The decline adds to a correction of nearly 9% over one month, which contrasts with a spectacular annual performance.
A decline that places the stock at the bottom of the CAC 40, below its 20-day moving average
STMicroelectronics is down 1.77% to €43.83 during the session, ranking among the largest declines in the CAC 40. The stock slips below its 20-day moving average (€44.54), with a negative gap of 1.58%, while the 50-day MA at €49.86 remains still 12% above the current price, highlighting the persistence of the medium-term downtrend. Only the 200-day MA at €39.74 holds below the price, offering a buffer of around 10%. The support level at €42.22 constitutes the next floor to watch should selling pressure intensify, while resistance at €49.06 still appears distant.
The RSI at 45, without a clear directional signal, reflects a neutral configuration that provides no clear reading on what comes next. The MACD, meanwhile, continues to progress toward its signal line (positive histogram at 0.56), which reflects a slight relief compared to the most tense weeks, but without confirmed reversal. In this context, the VIX volatility index surges more than 12% during the session, signaling increased nervousness in the markets that weighs on cyclical stocks like STMicroelectronics.
Fundamentals under pressure and valuation still elevated for the current fiscal year
Over one month, STMicroelectronics has lost nearly 9.2%, extending a quarterly decline of 28.75% that erases much of the annual rebound. Over twelve months, however, the stock retains a gain of nearly 97%, highlighting the scale of the performance achieved since September 2025. Valuation remains elevated relative to the current cycle: according to the consensus of surveyed analysts, the stock trades at approximately 37.8 times expected earnings for the current fiscal year, a multiple that should fall to 19.7 times for the following year if expectations materialize. When releasing Q1 2026 results on July 23rd, management had flagged two major risks: a reduction in charges related to unused capacity and uncertainties surrounding global tariff rates, while mentioning the contribution of MEMS sensor activity, stemming from NXP integration, as a growth driver.
In the European semiconductor sector, ASML Holding is down 2.58% and ASM International declined 1.53% during the session, illustrating general sector-wide pressure. Furthermore, the European Commission announced on Thursday the signing of the Pax Silica Declaration on semiconductor security, which aims to strengthen the resilience of semiconductor supply chains in Europe — a structural signal for the entire sector, of which STMicroelectronics is part. The support level at €42.22 remains the key threshold to watch in the short term.
