STMicroelectronics Takes the Lead in the CAC 40, +2.5% This Monday
STMicroelectronics is leading the CAC 40 this Monday morning, bringing its weekly gains to nearly six percentage points. The stock is evolving in a nearly stable Paris market, in a macroeconomic context marked by persistent tensions around the Strait of Hormuz and anticipation of a tightening of US monetary policy in September.
STMicroelectronics Leading the CAC 40, the Stock Moves Back Above Its 20-Day Moving Average and Consolidates Its Rebound
STMicroelectronics gains 2.49% to €45.92 in trading, reclaiming the top spot in a CAC 40 that advances only 0.11%. The stock is following the upward momentum initiated over several sessions, with a weekly performance of 5.9%, although the decline remains significant over three months (approximately 27%). Technically, the stock is holding above its 20-day moving average (€45.02), with a positive gap of 2%. This is a first sign of recovery after a prolonged period of pressure.
Conversely, the 50-day moving average at €51.35 still caps the price significantly above the current level, at approximately a 10.6% gap, indicating that the path remains long before a return to intermediate trend territory. The RSI at 41 does not signal clear oversold conditions but reflects a still hesitant momentum, consistent with a partial rebound against the backdrop of a deep quarterly decline. European peers are moving in the same direction: ASM International advances 2.47% and ASML Holding 1.31% in trading.
A Rebound in the Context of Disappointing Q2 Results and Tight Short-Term Valuation
When STMicroelectronics published its Q2 2026 results on July 23, 2026, it had exceeded revenue expectations but disappointed on profitability. The company had then cited among its risks the reduction of charges related to underutilized capacity and possible changes in tariff rates. On the opportunities side, the contribution of MEMS sensors acquired from NXP had been highlighted.
On the valuation front, according to the consensus of surveyed analysts, the stock is trading at approximately 39.6 times expected earnings for the current fiscal year and 20.7 times those for the following fiscal year — elevated multiples that reflect expectations for a recovery in margins after a difficult period. Friday's September 4 session had already seen the stock advance 2.5% in the wake of the semiconductor sector, consolidating a rebound initiated after Citi raised its price target in early September. The support level at €42.22 remains the downside reference to monitor in case of a reversal, while the resistance at €49.06 represents the next threshold to overcome to confirm the recovery.
