STMicroelectronics Shares Make Modest Gains at Close, Boosted by SpaceX Partnership Announcement

A Decade of Collaboration with SpaceX

STMicroelectronics and SpaceX formalized on December 15 a decade of collaboration that began in 2015, during which the semiconductor manufacturer delivered over 5 billion radio frequency front-end modules and antenna elements based on BiCMOS technology to equip Starlink satellites and terminals. Starlink currently produces over 20,000 terminals per day for customers in more than 150 countries, utilizing STM32 microcontrollers, secure elements, and GNSS solutions from the Franco-Italian group. This announcement comes as ST's BiCMOS technology powers Starlink's high-performance phase-controlled network antennas, serving over 8 million customers worldwide. The partnership continues to intensify with a focus on next-generation satellites and terminals. Rémi El-Ouazzane, president of STMicro's microcontroller division, indicated that the volumes of the past ten years could double in the next two years, reflecting the expected exponential growth. Starlink products are co-designed with ST engineers in France and Italy, manufactured in French factories, and then assembled and tested in Malaysia and Malta, reflecting the group's global industrial footprint.

Modest Closing Gain Amid Low Trading Volume

The stock closed at 22.375 euros, marking a modest gain of 0.36% from the previous day, in a particularly low trading volume of 0.16% of the capital. This performance occurs as the price approaches the resistance threshold of 22.41 euros, a level it failed to surpass during the session. Over the week, the decline is minimal at -0.13%, while the quarterly performance is slightly positive at +0.86%, contrasting with the annual decline of 10.05% which reflects the challenges faced by the semiconductor sector in 2025. The analysis of moving averages reveals an intermediate positioning of the stock. The price is now above the 50-day moving average set at 21.85 euros, which is a positive short-term signal, but remains below the 200-day moving average at 22.61 euros, illustrating a still fragile underlying trend. The RSI reaches 88, a particularly high level indicating a pronounced overbought situation and could suggest a pause or consolidation in the short term. This extreme RSI reading indicates that the stock has risen rapidly in recent days and may need a breather before continuing its rebound. However, the Stochastic signal displays a buy opinion, showing persistent bullish momentum despite the overbought zone.

MACD Indicator Confirms Ongoing Positive Momentum

The MACD indicator confirms the ongoing positive momentum with a MACD line at 0.47 significantly above the signal line at 0.18, generating a positive histogram of 0.29. This configuration reflects a strong bullish dynamic in the short term, as the MACD has recently crossed above its signal line, which is a classic technical buy signal. The monthly volatility of 8.81% remains moderate in the current sector context, while the nearly zero beta of 0.09 indicates almost independence from the movements of the CAC 40, giving the stock a relatively defensive profile. However, the fundamental context remains cautious. Jean-Marc Chéry, CEO, indicated in mid-November that first-quarter 2026 revenue is expected to decrease by 10 to 11% compared to the fourth quarter of 2025, although showing a growth of about 20% year-over-year. The results for the third quarter of 2025 published at the end of October were disappointing with an operating result down 52.9% and a gross margin below expectations. Nevertheless, the announcement of the partnership with SpaceX provides welcome visibility on a high-growth segment for STMicroelectronics. The stock is trading in a technical range defined by a support at 18.81 euros and a resistance at 22.41 euros, with Bollinger bands framing the price between 17.83 euros and 23.22 euros.