STMicroelectronics Shares Drop 3.94% Following a 3-Year High

Tail-ender of the index after a 67% rally in three months

STMicroelectronics trails the CAC 40 with a decline of 3.94%, ahead of Societe Generale (-3.83%) and Schneider Electric (-2.97%). The stock is digesting a spectacular rally: +67.3% over three months and nearly 128% over a year. The pause comes the day after a new peak at €50.86, mentioned in yesterday's brief.
The market climate is not helping. The CAC 40 is down 1.01% at 7,975 points, the DAX loses 1.34%, and other European comparables are also retreating: ASML is down 1.62%, ASM International falls by 4.51%. The momentum of European semiconductors is slowing after several euphoric sessions.
The stock is trading at about 46.7 times the expected earnings for the current fiscal year and 25.1 times those for the next fiscal year, compared to an average of 24.1 times for the Technology sector. This valuation gap is explained by an expected EPS growth of +85.8% from one fiscal year to the next, based on a consensus of 18 analysts.

RSI at 86 and resistance at €50.30: the pullback after an overheating signal

The RSI climbs to 86, in a marked overbought zone. The price encounters resistance at €50.30, reached the day before and then conceded right at the opening. However, the stock remains well above its moving averages: 14.9% above the MM20 (€42.05), 41.4% above the MM50 (€34.18), and 86.4% above the MM200 (€25.92). In the Bollinger Bands, the price moves in the upper part, at 78% of the amplitude.
The Chinese context remains mixed for chip manufacturers exposed to the region: the official manufacturing PMI returned to 50.3 in April, just above the expansion mark, while the non-manufacturing PMI is at 49.4, indicating contraction. In the United States, industrial production grew by 0.7% year-on-year in March.
The next financial event is the publication of the second quarter 2026 results, scheduled for July 23, 2026.