STMicroelectronics Shares Bounce Nearly 2%, Driven by Semiconductor Sector
The Franco-Italian semiconductor manufacturer is gaining ground during the session, following recent profit-taking. The stock benefits from a favorable sector momentum, as its American counterparts also post significant gains. Technical indicators remain tight after a spectacular spring.
The stock moves forward in the wake of a buoyant semiconductor sector
STMicroelectronics shares are up 1.99% at €66.64 mid-session, among the strongest gains in the CAC 40. The Paris index is up 0.88%, and the semiconductor sector is driving the market: ASML is up 1.10%, ASM International 2.18%. In the United States, counterparts had sessions of strong gains the day before. Micron surged by 9.87%, Lam Research by 6.98% and AMD by 5.14%, with the Nasdaq up 0.84% at Monday's close. This rebound comes after recent profit-taking, which had followed the spectacular rally that began in February. Over three months, the stock now shows a gain of 145.5%, and 166% over one year.
A still tight technical configuration despite distancing from all moving averages
The price is far above its three moving averages: the MM20 is at €58.32 (a gap of 14.27%), the MM50 at €46.20, and the MM200 at €29.55. This distance reflects the magnitude of the recent bullish movement. The RSI at 68 remains close to the overbought zone without crossing it. The stock is approaching its identified resistance at €68.49. In terms of valuation, the stock is trading at about 60.7 times the earnings expected for the current fiscal year and 31.9 times those of the next, according to the consensus of analysts surveyed. As a reminder, the group had raised its ambition on June 2 for the data center business to about $1 billion in 2026, with a potential doubling in 2027, as indicated in the group's communication on its data center ambitions.
