STMicroelectronics Shares Rebound 2% and Lead the CAC 40 Again
The Franco-Italian semiconductor manufacturer has recovered from its early-week correction and is among the top performers in the CAC 40. The stock is benefiting from a still favorable sector environment, as its European and American peers also post gains. This session comes two days after the launch of a significant convertible bond issue.
The Stock Rises Again, Approaching the €70 Threshold
STMicroelectronics shares are up 1.96% to €66.44 in early afternoon trading, while the CAC 40 is down 0.14%. The stock is among the highest risers in the Paris index, alongside Legrand, Airbus, and Safran. The rebound erases some of Tuesday's profit-taking, which had pushed the stock away from the round €70 threshold. The momentum is supported by a favorable sector environment: ASML is up 1.4%, ASM International by 1.9%, and most American semiconductors are also up (Micron +2.2%, AMD +1%, Lam Research +1.3%), despite Nvidia's decline. Over three months, the performance remains spectacular, at over 127%, and nearly 163% over a year. The price is significantly above its moving averages: MM20 at €62.66 (+6%), MM50 at €51.21 (+30%), MM200 at €31.01 (+114%), reflecting the magnitude of the rally that began in February. The RSI at 61 remains in a high tension zone but without excess, after having reached much more saturated levels in mid-May. The technical resistance identified at €68.49 is just below the psychological cap of €70, which was approached on Monday without being crossed.
A $1.5 Billion Convertible Bond Issue in a Mixed Market Environment
The group launched a $1.5 billion convertible bond issue on Tuesday, in two tranches of 5 and 7 years, coupled with the early repayment of convertibles maturing in 2027. The operation refinances part of the manufacturer's debt at a time when the stock's valuation offers favorable conversion conditions. According to the consensus of analysts surveyed, the stock is trading at about 59 times the earnings expected for 2026 and 30 times those of 2027, a multiple that reflects the significant revaluation since spring. In the background, the session is taking place in a hesitant market climate: Wall Street closed down on Tuesday evening (Nasdaq -1.3%, S&P 500 -1.2%), while the Fed kept its benchmark rate between 3.50% and 3.75% but hinted at a possible hike in the face of a year-on-year inflation of 4.2%. The VIX has risen to 17.4 (+6.3%). Despite this cautious context, European semiconductors are holding up. The resistance of €68.49 will be the next technical marker to watch, as the crossing of the €70 threshold was narrowly missed earlier in the week.
