STMicroelectronics N.V. (STM): one to watch?

A modest 2% guidance miss triggered an outsized crash amid a sector-wide chip selloff — tempting but automotive/industrial demand weakness is real and ongoing.

👀 WATCH Fundamentals66/100

Fell 25% in 10 trading day(s) — now $53.49

Why STM dropped

STM beat Q2 estimates STMicroelectronics stock fell about 17% after a weak Q3 revenue outlook, despite a Q2 beat and a higher AI data center forecast. but gave Q3 revenue guidance of $3.70B, which landed nearly 2% below analyst consensus of $3.76 billion, overshadowing a strong second-quarter earnings beat. The drop was amplified by a broader chip-sector selloff — the broader technology sector faced a wide sell-off today as investors grew anxious over bloated valuations and the massive costs associated with artificial intelligence infrastructure, dragging down numerous semiconductor peers across Europe and the U.S.

Fwd P/E 20.8Op margin 6.9%Rev growth 26.1%Debt/equity 22.3%Analyst upside 37.2%

How this scored 66/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 3.6%

✅ Generates cash Free cash flow $198M

✅ Not drowning in debt Debt/equity 22.3% (limit 200%)

✅ Can pay its bills Current ratio 2.8 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 4/25

Operating margin 6.9% 2/9

Net profit margin 3.6% 1/8

Return on equity 2.7% 0/8

Growth Is it getting bigger, or dying? 19/25

Revenue growth 26.1% 9/9

Earnings growth unknown 2/8

Expected profit change 403.9% 8/8

Value Is it cheap right now? 18/25

Forward P/E 20.8 6/10

PEG ratio 0.5 8/8

Analyst target upside 37.2% 4/7

Balance sheet Will it survive? 25/25

Debt / equity 22.3% 10/10

Current ratio 2.8 8/8

Free cash flow $198M 7/7

🔒 Read the full AI analysis

Create a free account to unlock the bull case and the risks for STM — plus today's other picks.

Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-24. Research only — not financial advice.