STMicroelectronics Stock Jumps 3.5% and Leads the CAC 40
The Franco-Italian semiconductor manufacturer is moving forward again in mid-morning, after a consolidation session on Friday that had relegated it to the bottom of the CAC 40. The stock is benefiting from a supportive sectorial climate in Europe, as its Dutch counterparts are also in demand.
The Stock Takes the Lead in the CAC 40 and Maintains an Exceptional Three-Month Performance
STMicroelectronics stock gains 3.44% to €64.73, marking the highest rise in the Paris index, while the CAC 40 drops 0.34%. The stock thus erases a good part of the decline from the last session, which had placed it as the laggard of the CAC 40 following its rally. The movement is part of a well-oriented European sector, with ASML up nearly 1% and ASM International gaining close to 1.5%.
The performance remains spectacular over long horizons: +127.1% over three months and +151.5% over a year, where the week remains slightly negative (-4.7%). According to the consensus of surveyed analysts, the stock is trading at about 57.4 times the earnings expected for the current fiscal year and 29.2 times those of the following year, a level that reflects the magnitude of the rerating since spring. The stock market dynamics also rely on a regular flow of product announcements, including the recent launch of the ST54M chip for smartphones and the VL53L9 Lidar module for embedded AI.
The Stock Tests Its 20-Day Moving Average at €64.55 After a Three-Month Value Increase of 2.27 Times
In terms of indicators, the stock returns to its 20-day moving average at €64.55, barely crossing it during the session (+0.28%). The distance from the longer averages remains significant: the 50-day moving average is 20% below the current price and the 200-day moving average, at €31.91, is more than twice lower than the current price, a direct consequence of the rally that began in March. The RSI at 54 indicates a buyer-seller balance after recent fluctuations, while the MACD remains slightly negative (-0.36), indicating that the short-term bullish momentum has waned since the peak in June. The technical support identified at €52.15 is far from the current price, more than 19% below, leaving the stock in the upper half of its recent channel.
The immediate resistance is at €69.39, a level approached in June when the stock was flirting with the €70 mark. On the sectorial context, the Chinese manufacturing PMI came out in the expansion zone in April (50.3), which supports the overall climate for semiconductor equipment manufacturers exposed to Asia. The session currently confirms the return of buyers after the mid-month pause.
