STMicroelectronics Shares Soar Nearly 4%
The Franco-Italian semiconductor manufacturer makes a strong move mid-morning and takes the lead in the Paris index following the strong results from Micron overseas. The stock continues its rebound from the previous day after launching its post-quantum chip for smartphones, in a European sector buoyed by the strength of ASML and ASM International.
Leading the CAC 40, the Stock Rebounds in the Wake of a Strong European Sector
STMicroelectronics shares are up 3.84% at €65.79, marking the highest increase in the CAC 40 during the session, while the Paris index itself is up by 0.33%. This movement comes the day after the launch of the ST54M, a post-quantum secure chip for smartphones, which was already praised the previous day with a nearly 2% rebound. The sector's momentum remains supportive: ASML is up 4.08% and ASM International by 6.07% during the session, indicating a renewed appetite for European semiconductor stocks. Over three months, the performance remains spectacular (+139%), while the gain over one year exceeds 155%. The stock has undergone several recent profit-taking phases, including a nearly 6% drop on June 23, which have not undermined the underlying trend established since February.
RSI Returns to Neutral Zone After Consolidation, Valuation Stretched at 58 Times Earnings
The rebound brings the price well above the MM20 (€64.55, a gap of +1.92%), while the MM50 at €53.94 and the MM200 at €31.91 remain far below, reflecting the rally accumulated since spring. The RSI at 54 has returned to a neutral zone after the overheating episode in early June, which gives the stock a bit more technical leeway. The identified resistance at €69.39 remains the next immediate price threshold, while the psychological barrier of €70, already approached in mid-June, has not yet been crossed. In terms of valuation, the stock is trading at approximately 58.2 times the earnings for the current fiscal year and 29.7 times those of the next, according to the consensus of surveyed analysts, a multiple that reflects the magnitude of the rebound since the February low. Net short positions remain contained on the stock, without significant acceleration. The rally comes against the backdrop of the group raising its ambitions for data centers, announced on June 2, which then targeted a revenue of about $1 billion in 2026 for this activity.
