STMicroelectronics Shares Jump 3.4% at Close, Marking Fifth Consecutive Session of Gains
On Thursday, December 4, STMicroelectronics recorded a fifth consecutive session of gains at the Paris Stock Exchange, closing up 3.4% at 22.055 euros. This performance is part of a significant rebound in the European semiconductor sector, driven by encouraging signals from across the Atlantic and upwardly revised sector forecasts.
Strong Closing Performance
At the close, the Franco-Italian electronic chip specialist posted a gain of 3.4% at 22.055 euros, up from 21.33 euros the previous day. The semiconductor manufacturer is among the top performers on the CAC 40 index, which itself gained 0.43% to 8,122.03 points. Trading volumes remained low with only 0.42% of capital traded during the day. Over the week, the stock has seen a spectacular rebound of 12.59%, partially offsetting the losses accumulated over the year where the performance remains negative at -9.69%, well below the CAC 40's 11.94% over twelve months. Over three months, the increase amounts to 1.19%, indicating a gradual stabilization after a difficult fourth quarter of 2024 marked by weak demand in the automotive and industrial sectors. In recent days, the semiconductor manufacturer has benefited from several favorable sector publications, including Microchip's raised guidance for the third quarter of fiscal year 2025/26, driven by an improvement in order intakes. European semiconductors also gained from a bullish note by BofA Global Research and positive sentiment following U.S. manufacturer Marvell's announcement of aggressive growth forecasts after acquiring Celestial AI for $3.25 billion. Oddo BHF notes that Microchip is historically considered an early indicator of industrial cycle inflection points, particularly due to its specialization in general-purpose microcontrollers and its industrial clientele. This favorable sector dynamics has supported all European sector values, with STMicroelectronics leading the way.
Technical Perspective
From a technical standpoint, the stock shows progressive recovery signals that support the ongoing upward movement. The RSI at 58 remains in a neutral but positively oriented zone, confirming the strength of the recent trend without signaling overbought conditions. The price is approaching its 50-day moving average at 22.13 euros, a level it has just crossed, now serving as an important pivot point for the continuation of the movement. More significantly, the MACD histogram is positive at 0.33, indicating that the MACD line at -0.56 is moving towards its signal line at -0.88, reflecting an ongoing bullish convergence. Although the MACD remains in negative territory, this development suggests a possible short-term trend reversal if the crossing of zero materializes soon. The stock is now trading above the resistance threshold of 21.89 euros, potentially paving the way towards the 200-day moving average currently at 22.66 euros. The support threshold at 18.81 euros remains distant, providing a comfortable safety margin. The one-month volatility of 8.44 remains moderate in the sector context, while the negative beta of -0.04 shows almost independence from the movements of the CAC 40. The Bollinger Bands, with an upper bound at 21.23 euros and a lower bound at 18.60 euros, indicate that the stock is now trading outside its volatility channel, confirming the exit from a consolidation phase.
Looking Ahead to 2025
While visibility for the year 2025 remains limited and the outlook for the first quarter remains cautious, the recent rebound in the stock is part of a gradual improvement in investor sentiment towards the sector. The market environment, marked by signs of improvement in the U.S. semiconductor scene and a gradual stabilization of inventories among industrial clients, could provide a favorable basis for the continuation of the bullish movement that began in late November. The consolidation of the course above the 50-day moving average will be a decisive test to confirm the strength of this technical recovery.
