STMicroelectronics Stock Climbs 2% Approaching the €70 Mark
The Franco-Italian semiconductor manufacturer continues its ascent in the mid-afternoon, within a sharply rising CAC 40. The stock extends a spectacular rally that began in the spring and is now flirting with a psychological round threshold. Momentum indicators confirm a still tense configuration after several weeks of soaring.
A Rally that Takes the Stock 128% Above its 200-Day Moving Average
STMicroelectronics stock is up 2.13% at €69.19 during the session, while the CAC 40 is up 1.13%. The stock thus ranks among the top half of the Parisian index, although not leading, a position held by Stellantis (+6.2%) in a market relieved by the easing on the oil barrel. Nonetheless, the performance remains impressive over longer horizons: nearly 25% over one month, and a gain of +141.8% over three months, more than double.
Today's movement brings the price closer to the round threshold of €70, an immediate psychological level above which the stock would move into completely uncharted territory. The 20-day moving average at €60.69 is now 14% below the price, and the 200-day moving average at €30.35 is more than 128% below: a gap that reflects the magnitude of the rally that began in February. The RSI at 68 remains just below the overbought threshold, indicating that the buying momentum has not yet reached a point of characterized exhaustion.
A Supportive Sector Environment and Stretching Valuation
Today's rise occurs in a favorable sector environment. ASML and ASM International are also in the green, and the Asian session saw the Nikkei jump nearly 5%, driven by the US-Iran framework agreement and the retreat of Brent oil which reduces the geopolitical risk premium on technological supply chains. The latest target upgrades by Bank of America and Deutsche Bank on June 10 and 11 continue to fuel the momentum, as does the announced increase in data center ambitions at the beginning of June, which set the target at 1 billion dollars by 2026.
This surge mechanically stretches the valuation. According to the consensus of surveyed analysts, the stock is trading at about 62.8 times earnings for the current fiscal year and 32.2 times those of the next fiscal year. The eventual crossing of the €70 mark will constitute the next technical reference point observable, with the stock having no previous graphical reference above that level.
