STMicroelectronics Shares Drop 2.5% and Lag Behind the CAC 40 After a 133% Rally

Significant Profit-Taking After a 133% Rally in Three Months

STMicroelectronics shares drop 2.5% to €66.74, while the CAC 40 advances by 0.65%. The stock ranks at the bottom of the Parisian index, behind Renault. This session interrupts an impressive upward dynamic: the stock is still up 26.3% over the month and 133% over three months, despite today's decline.

Trading volumes indicate profit-taking after approaching the psychological threshold of €70, already mentioned the previous day. This movement contrasts with the strength of the DAX (+1.14%) and the Nasdaq at the last close (+2.37%), driven by the wave of American semiconductors. As a reminder, the rally in recent weeks was supported by the raised ambition for data centers to $1 billion by 2026, unveiled in early June, and a series of target revisions by Bank of America, Deutsche Bank, UBS, and Oddo BHF.

The Stock Remains Well Above Its Moving Averages, RSI Close to Overbought Zone

Despite today's decline, the configuration remains tight. The price is 8.5% above the MM20 (€61.49) and 34% above the MM50 (€49.79), a gap that illustrates the magnitude of the movement that began in spring. The MM200 (€30.58) is more than 118% below the current price, a rarely observed discrepancy. The RSI at 69 remains close to the overbought zone, without fully entering it, which leaves room for further consolidation.

The technical resistance threshold identified at €68.49 was abandoned during the session, with the stock falling below it. According to the consensus of surveyed analysts, the stock is trading at about 60.5 times the expected earnings for the current fiscal year and 31 times those of 2027, a multiple that reflects the high expectations embedded in the price. The next key event to watch is the FOMC meeting, with conclusions expected on Wednesday, the first under the chairmanship of Kevin Warsh, in a context where US inflation remains above target.