STMicroelectronics stock rebounds 6% but remains 25% below its 50-day moving average
The Franco-Italian semiconductor manufacturer signs a sharp rebound at close, in the wake of a wave of buying in European sector stocks. The stock recovers color after a violent decline following the publication of its quarterly results last week, but remains very far from its short-term moving averages.
The stock gains 6% and ranks among the strongest gainers in the CAC 40
STMicroelectronics stock gains 6% to €45.47, among the strongest risers in the CAC 40, in a Paris index itself up nearly 1%. The movement is part of a strong rebound in European chip stocks, with ASM International surging 10.9% and ASML up 5.9% in the same session. The Nasdaq rebound (+2.3%) accompanies the movement, despite difficult sessions for major American sector names (Micron -9.9%, AMD -5.5%). Despite this respite, the stock remains weighed down on short horizons, with a decline of nearly 22% over the week and 28.5% over a month, aftereffects of the post-results drop on July 23rd last. The price thus remains clearly below its 20-day moving average (€55.97) and its 50-day moving average (€60.45), with a gap close to 25% from the latter. The RSI at 27 reflects an oversold configuration that is accompanied today by a technical rebound. Performance over one year remains very positive, at nearly 98%.
Analyst consensus adjusts following mixed quarterly results
Analyst opinions were revised following the publication of the second quarter. HSBC lowered its price target from €84 to €81, while maintaining its buy rating. Goldman Sachs cut its target from €58 to €53, at Neutral. Based on the current price, the HSBC target leaves theoretical upside potential of approximately 78%, that of Goldman Sachs of approximately 17%. Upon publication of Q2 2026 (on July 23, 2026), the group delivered revenue of $3.49 billion, up 26% year-on-year and above consensus, but with profitability that disappointed. The company communicated a guidance midpoint of $3.70 billion for the third quarter, with expected gross margin at 37%, and mentioned revenue above $4 billion anticipated in the fourth quarter, driven by demand from AI-dedicated data centers. According to the consensus of surveyed analysts, the stock trades at approximately 39 times expected earnings for the current fiscal year and 20.5 times those of the following year.
