STMicroelectronics stock plummets 33% in three months and breaks below its 20-day moving average
STMicroelectronics declined on Wednesday in a Paris market clearly oriented downward, following a week that had nevertheless remained positive over a seven-day rolling period. Today's correction pushes the stock below its twenty-day moving average, in a context where European semiconductors are moving in negative territory.
A decline that erases yesterday's rebound and falls back below the 20-day MA
STMicroelectronics fell 2.34% to €43.95 during the session, after declining 2.5% the previous day in the same index. The decline occurs in a CAC 40 that lost nearly 1.87% mid-session, sweeping along almost all technology stocks. The stock thus finds itself in 30th position in the Paris index, far from extremes but firmly anchored in today's declining camp. Its European peers are moving in the same direction: ASML Holding is down 2.45% and ASM International is down 2.02%, confirming widespread pressure on the sector.
In terms of technical indicators, the price is now below the 20-day MA at €44.70 (spread of -1.68%), a configuration that contrasts with the rebound observed at the beginning of the week. The 50-day MA at €50.26 remains significantly above, with a spread of 12.55%, which illustrates the magnitude of the recovery path ahead in the medium term. Only the 200-day MA at €39.61 remains below the price, offering a cushion of around 11%. The support level identified at €42.22 constitutes the first level to monitor should selling pressure intensify.
Tight valuation against a backdrop of mixed Q1 2026 results and uncertain macroeconomic context
According to the consensus of surveyed analysts, the stock is trading at approximately 38 times expected earnings for the current fiscal year and approximately 19.8 times those for the following fiscal year — a valuation that leaves little room for disappointment. When publishing Q1 2026 results (July 23, 2026), STMicroelectronics had exceeded revenue expectations but disappointed on profitability, while the expected contribution from MEMS sensors resulting from the acquisition of NXP assets represented one of the opportunities highlighted. Conversely, global price variations were among the risks identified at that time.
Over one month, the stock shows a decline of 8.94% and over three months a drop of 32.74%, which reflects persistent pressure despite the near 4% jump recorded over seven days. The VIX, for its part, rose to 16.48 during the session, up 7.71% compared to the previous day, signaling increased nervousness in markets that does not favor high-valuation stocks. The support at €42.22 remains the short-term benchmark to monitor to gauge the extent of any potential continuation of the decline.
