On June 5, 2023, STMicroelectronics and GlobalFoundries announced their partnership to construct a state-of-the-art semiconductor manufacturing facility in Crolles, France. The project is expected to cost €7.5 billion, which includes CAPEX, maintenance, and other miscellaneous expenses. The French government has pledged €2.9 billion in state aid to support the construction of the facility.
The new facility will be capable of producing up to 620,000 wafers per year, with a size of 300mm, and is expected to reach full capacity by 2028. The companies’ revenue ambition of $20 billion+ will be supported by this new facility.
Furthermore, the new facility will significantly contribute to the objectives of the European Chips Act, which aims to increase Europe’s semiconductor production to 20% of worldwide production by 2030. The facility will also advance the FD-SOI ecosystem, which offers benefits such as ultra-low power consumption and easier integration of additional features such as RF connectivity, mmWave, and security, for designers and customers alike.
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STM Stock Fluctuates on June 5, 2023, Despite Strong Earnings Growth Last Year
On June 5, 2023, STM stock opened at 44.69, lower than its previous close of 44.91. Throughout the day, the stock fluctuated within a range of 44.20 to 44.79. The volume for the day was 769,490, which is significantly lower than the average volume of 3,762,422 over the past three months. The market cap for STM is $40.5B.
Despite a strong earnings growth of 97.72% last year, the earnings growth for this year is expected to be 1.78%, and the earnings growth for the next five years is projected to be 5.00%. However, the revenue growth for last year was 26.39%. The P/E ratio for STM is 9.9, and the price/sales ratio is 2.09, while the price/book ratio is 3.20.
STM operates in the electronic technology and semiconductor industries. The company is headquartered in Plan-Les-Ouates, Geneve (Geneva), but there are no executives to display.
On June 5, 2023, STM stock experienced a decline in value, with a change of -1.71 and a percentage change of -2.22%.
The next reporting date for STM is July 27, 2023, with an EPS forecast of $1.08. The annual revenue for last year was $16.1B, and the annual profit was $4.0B, with a net profit margin of 24.55%.
In conclusion, while STM had a strong earnings growth last year, the company is projected to experience slower growth in the coming years. However, the revenue growth for last year is a positive sign for the company. On June 5, 2023, STM stock experienced a decline in value, but it will be interesting to see how the company performs in the upcoming quarter.
STMicroelectronics (STM) Stock Sees +28.60% Increase in Median Target: Analysts Rate Buy Ahead of Earnings Report
On June 5, 2023, STMicroelectronics NV (STM) stock saw a median target of 57.25, with a high estimate of 78.31 and a low estimate of 35.23. The median estimate represents a +28.60% increase from the last price of 44.52. The 23 analysts offering 12-month price forecasts for STM have a consensus rating of “buy,” which has held steady since April. STM is a global semiconductor company that designs, develops, and manufactures a broad range of products, including microcontrollers, sensors, and power management chips. The positive outlook for STM is due to several factors, including a strong track record of innovation, a well-positioned position to benefit from the growing demand for semiconductors, and a solid financial position. Investors should pay close attention to the next earnings report for STM, scheduled for July 27, 2023, for important insights into the company’s financial performance and prospects for future growth.
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