STMicroelectronics stock rebounds and takes the lead of the CAC 40
Two days after breaking a technical threshold, STMicroelectronics regains momentum and tops the CAC 40 this Wednesday morning. This rebound comes as the Franco-Italian-Dutch group has just launched a new infrared sensor for the automotive sector, in a context of a European market oriented upwards, despite the Fed decision expected later in the day.
STMicroelectronics leads the CAC 40, driven by the launch of the VD56GA and the dynamism of semiconductors
The stock gains 2.03% to €42.64 during the session, posting the strongest rise in the CAC 40 among the forty values of the index. The launch announced on September 14th of the VD56GA, infrared image sensor intended for high-volume automotive platforms, provides concrete product anchorage to today's dynamics. The movement fits within a globally favorable sector environment: ASML Holding advances 2.36% and ASM International rises 3.60%, while on the American side, Advanced Micro Devices gains 2.19% and Nvidia rises 0.57% at Tuesday's close.
The CAC 40 itself advances modestly by 0.16% during the session, STMicro's rebound thus being largely superior to that of the index. The sector context nevertheless remains challenging: the Fed decision, expected this Wednesday, September 16th, could raise the key rates for the first time in three years, potentially weighing on valuations of technology and growth stocks. STMicroelectronics trades at approximately 36.6 times the earnings of the current fiscal year according to the consensus of analysts surveyed, a multiple that leaves little room for error in case of further monetary tightening.
A limited technical rebound: the price remains below its 20 and 50-day moving averages
Today's rebound eases a difficult week, marked by a decline of 5.27% over seven days and a drop of nearly 6% on Monday, when the stock had crossed below a threshold that had been monitored for several weeks. At €42.64, STMicroelectronics nevertheless remains below its MA20 at €43.56 (gap of -2.12%) and well below its MA50 at €48.29, a gap of over 11%. This double ceiling of moving averages signals that the stock is still evolving in bearish territory in the short and medium term, with today's rebound insufficient to reverse the momentum. The RSI at 39 reflects a neutral to slightly defensive configuration, far from outright oversold but without a confirmed bullish reversal signal.
The MA200 at €40.21 is the only moving average below the current price, approximately 6% below the price, and technical support stands at €41.74. Over three months, the stock still shows a decline of 37.71%, which puts today's rebound in perspective as a still very pronounced correction. Chinese data published this Wednesday, showing industrial production up 5.2% year-on-year in August but household consumption still sluggish, remind us that demand for semiconductors remains dependent on an uncertain recovery cycle. Resistance at €49.06 remains the technical horizon to watch in order to assess the solidity of a potential reversal.
