STMicroelectronics the Laggard of CAC 40, Pressured after Micron
The Franco-Italian semiconductor manufacturer is experiencing a new wave of sales mid-morning. The stock is now trailing the Paris index, as the European chip sector faces renewed turmoil. The decline widens the gap with the short moving average, now significantly above the price.
The stock drops 2.77% and takes last place in the CAC 40
STMicroelectronics stock loses 2.77% to €57.25, down from €58.88 the previous day, positioning it at the end of the CAC 40 as the index falls by 0.39%. This movement is part of a poorly oriented European semiconductor sector, with ASM International dropping 2.86% in Amsterdam, while ASML holds up (+1.16%). Overseas, Micron had plunged 8.02% in the previous session and AMD by 3.46%, a context that weighs on European stocks exposed to the same cycle.
Over a week, the stock remains down by 2.12% and has eroded by 16.36% over a month, digesting the spring rally that brought the three-month performance to nearly 66% and the annual gain to 108.8%. The session places the stock in the same unfavorable configuration as on July 13, when it had already slipped to the end of the index after losing its 20-day moving average.
A gap of more than 11% below the MM20, as July 23 earnings loom
The price has significantly dropped below the 20-day moving average, located at €64.55, with a gap of 11.31%. However, it remains well above the MM50 (€53.94, a gap of 6.14%) and significantly above the MM200 at €31.91, a remnant of the spring rally. The RSI at 54 indicates contained selling pressure, with no overselling signal, while the MACD has moved below its signal line (3.02 versus 3.38), consistent with the ongoing consolidation over the past month.
The reference technical support is at €52.15, resistance at €69.39. According to the consensus of analysts surveyed, the stock is trading at approximately 49.9 times the expected earnings for the current fiscal year and 25.4 times those of the next fiscal year, a valuation benchmark to keep in mind before the publication of the second quarter results, expected on July 23, 2026.
