STMicroelectronics Shares Drop 2.94% Amid Trade Tensions
The Franco-Italian semiconductor manufacturer closed the trading session on Friday, October 10 at €23.98, down 2.94% from the previous day's close at €24.70. This decline is part of a recent negative trend, with a cumulative loss of 2.52% over seven days and 11.5% over three months. Over the year, the stock has fallen by 6.88%, contrasting with the CAC 40's gain of 4.73% over the same period.
The general market context weighed on all tech stocks this Friday. Investors reacted negatively to new threats by U.S. President Donald Trump to impose a massive increase in tariffs on Chinese goods in response to Beijing's restrictions on exports of technologies related to rare earths. These announcements caused a generalized retreat in European and American indices, with the CAC 40 closing down 1.53% at 7,918 points. Semiconductors, at the heart of the trade tensions between the world's two largest economic powers, were particularly affected by this renewed uncertainty in international trade.
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Technically, the stock is now just above its 50-day and 200-day moving averages, positioned at €23.02 and €23.10 respectively, indicating a fragile medium-term balance. The support level identified at €21.80 offers a margin of safety in case of new selling pressure, while resistance is at €24.86. The Relative Strength Index (RSI), at 64, remains in a neutral zone without indicating overselling, suggesting that the stock retains some resilience despite recent turbulence. The stock's behavior relative to the market also deserves attention. With a beta of only 0.03, STMicroelectronics usually shows a very low correlation with the movements of the CAC 40, making it theoretically less sensitive to general market fluctuations. However, this Friday, the stock amplified the decline of the Parisian index, indicating that investors have taken into account the particular exposure of the semiconductor sector to the trade tensions between the United States and China. The Bollinger Bands, ranging from €22.58 to €25.46, frame recent oscillations and suggest a relatively stable short-term evolution corridor, although the current configuration indicates contained volatility compared to sector standards.
« Le chiffre d'affaires du quatrième trimestre a dépassé le milieu de notre prévision et la marge brute a été soutenue par un meilleur mix produit. »
STMicroelectronics a publié ses résultats pour le quatrième trimestre et l'année 2025. Le chiffre d'affaires annuel s'établit à 11,8 milliards de dollars avec une marge brute de 33,9% et un résultat opérationnel de 175 millions de dollars. Le bénéfice net attribuable aux actionnaires pour l'année est de 166 millions de dollars, et le flux de trésorerie disponible (non-U.S. GAAP) pour l'année est de 265 millions de dollars. Pour 2026, le point médian du trimestre est un chiffre d'affaires attendu de 3,04 milliards de dollars et une marge brute d'environ 33,7%.
Risks mentioned
changements dans les politiques commerciales mondiales, y compris les tarifs et barrières commerciaux, susceptibles d'affecter la demande
incertitudes macroéconomiques et inflation, influençant la production et la demande finale
écarts entre la demande client et les projections nécessitant des mesures de transformation
capacité à concevoir, fabriquer et vendre des produits innovants dans un environnement technologique rapide
Outlook / guidance
Expected revenue: Le chiffre d'affaires du premier trimestre 2026 est attendu autour de 3,04 milliards de dollars, en baisse séquentielle d'environ 8,7% et avec une marge brute d'environ 33,7% (plus ou moins 350 pb pour le chiffre d'affaires et plus ou moins 200 pb pour la marge brute).
Management commentary: La direction souligne que les perspectives dépendent des conditions macroéconomiques, des taux de change et du mix produit.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
