STMicroelectronics shares fall 6.5% in a market plagued by AI doubts

A correction that erases yesterday's rebound and deepens the quarterly decline

The STMicroelectronics share loses 6.5% to €40.24 during trading, while the CAC 40 gains 0.29%. It is the largest decline in the index, ahead of Legrand (-3.84%) and Schneider Electric (-3.42%). The stock has fallen nearly 19.4% over a week and 34.4% over three months, after reaching the top of the CAC 40 the day before. The decline is part of a correction in European semiconductor stocks.

The acceleration of American inflation is reviving concerns about interest rates, while investors are questioning the financing of artificial intelligence infrastructure and Chinese competition in memory chips. Comparable Paris stocks are following the same trend: ASML Holding falls 5.29% and ASM International 8.63%. On Wall Street, Micron (-4.08%), AMD (-5.73%) and Lam Research (-4.71%) also declined on Wednesday.

Below the three moving averages, with an Oddo BHF target lowered to €70

The price is now below its 20-day moving average (€46.43, a gap of 13.34%) and its 200-day moving average (€42.76), the latter being 5.91% above the current price. The share thus falls back below the long-term average it had recently reclaimed, and is approaching the €41.74 support level it has just broken through during trading. Regarding analyst opinions, Oddo BHF lowered its price target from €72 to €70 on October 13 with an outperform rating, representing an upside potential of approximately 74% compared to the current price.

Furthermore, the Supervisory Board requested on October 13 the reappointment of Jean-Marc Chéry for one year, with a shareholder vote scheduled at the 2027 assembly. The share is trading at €40.24, below its 200-day moving average for the first time since its rebound.