STMicroelectronics leads the CAC 40, rebound of more than 4%
STMicroelectronics stands at the top of the CAC 40 this Thursday, posting the strongest gain in the Paris index. The rebound comes as the stock remains under pressure over longer horizons, in a market context globally oriented downward in Europe.
STMicroelectronics leads the CAC 40 with a gain of 4.17% pushing the stock towards 44 €
STMicroelectronics advances 4.17% to 44.09 € during trading, posting the best performance of the CAC 40 while the Paris index falls nearly 1% in the same period. The movement is part of a semiconductor sector that is globally well-oriented this morning: ASML Holding gains 1.51% and ASM International advances 2.75%. American peers at Wednesday August 26 close displayed limited variations, Micron Technology advancing 0.58% and Advanced Micro Devices 0.37%, while Nvidia declined 1.59%.
In terms of past performance, this rebound mitigates the pressure exerted by a monthly decline of 5.73% and a retreat of 26.33% over the elapsed quarter. Progress for the week remains modest at 0.44%, illustrating the violence of the correction accumulated during the quarter. On the fundamental side, when publishing second quarter 2026 results on July 23, STMicroelectronics targeted revenue of 3.70 billion dollars for the third quarter 2026, with a gross margin of 37.0%, while anticipating revenue above 4 billion dollars in the fourth quarter, driven by demand in AI data centers.
The RSI at 32 reflects oversold territory, but moving averages still weigh on the stock
The stock trades below its 20-day moving average (45.70 €, gap of -3.53%) and well below the MA50 at 53.67 € (gap of -17.86%), testifying to the scale of the recent correction. The only moving average supporting the price remains the MA200 at 38.64 €, above which the stock trades with a cushion of 14.09%. The RSI at 32 is in oversold territory, reflecting the exhaustion of selling over recent weeks but does not in itself constitute a sufficient signal to qualify a reversal. The support at 42.22 € remains the low reference to monitor, while resistance at 58.27 € remains distant.
On valuation, according to analyst consensus surveyed, the stock trades at approximately 20.2 times expected earnings for the following fiscal year, compared to 37.9 times for the current fiscal year, reflecting expectations of gradual normalization of profitability. The analyst consensus remains to be monitored in this context. Furthermore, on August 24, STMicroelectronics and the National University of Singapore officially launched the ST-NUS HELIX Corporate Lab, a four-year research partnership focused on embedded artificial intelligence technologies (edge AI). The closest intermediate technical resistance remains the MA20 at 45.70 €, which the stock must break through to initiate a more convincing recovery.
