STM
STMicroelectronics NV ADR
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STMicroelectronics (STM) is one of the best and most undervalued European stocks
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This Barron's article might explain Tesla's sudden surge today: Tesla Stock Turns Higher Because Sales and Deliveries May Blow Away Estimates
Can’t but STM on Robinhood, but can sell it. Anyone else?
Mentions
purely on data and discounting any sqeezing these are my estimates for such events happening within the year... for a QCOM evaluation: we will need about 4x current revenue and remove all debt worry along with decent tax credits for a AVGO evalution: we will need about a 10x revenue some very good deals with more companies needing the product possibly some vertical integration with possibly STM, and for such a merger or buyout to not get the stock shutdown for a TSMC evaluation: we will need gyna to invade taiwan and trump to put a complete embargo on gyna along with Nvidia enlisting WOLF to begin producing its semiconductors will money for infrastructure paid up front and for this entire ordeal to not cause a market correction. all that being said, honestly I feel the stock is destined for ~$20 evaluation on current numbers and data. The fact that its priced at 1/5 of that makes it a buy, and the fact that all of the up and coming industries rely on the SiC chips makes this a hold for me at least. Given this I feel that the best profit taking comes through options trading rather than trading the underlying stock.
Kann man so meinen, besonders wenn man das Negative hervorheben möchte, ohne die Fakten zu ergänzen. Wolfspeed fährt die Produktion an neuen Produktionsstandorten hoch und wird jedes Quartal damit erfolgreicher. War es nicht Elon Musk der mit dem Satz "Production Hell"? Wenn man solche riesige Produktion hochfährt, die weltweit einmalig ist, könnte einiges an unerwarteten Produktionsfehlern am Anfang statt finden. Es ist 100% einstimmig mit der Produktionstheorie. Nachfrage wird laut STM und Co. besser (Tiefpunkt wurde laut STM erreicht, eigentlich vor nur wenigen Tagen angekündigt). Einige Firmen haben Leute die verdammt viel Ahnung haben und zwar im Bereich der Leistungselektronik. Beispiele sind Renesas, VW, BorgWarner, etc. und diese sind entweder Partner, Kunden oder direkte Investoren in Wolfspeed. Sie haben bestimmt nicht auf die Stimmen von "Fake und koordinierten Accounts" gehört, um ihre Entscheidungen zu treffen. Und so ein riesigen Aufwand zu betreiben, nur um die Ahnungslosen Menschen zu retten, come on! das ist unglaubwürdig
This is a bullshit write up. Sounds like some one is mad we about to take a chunk of STM and Infineons business. I'm no trumper but this is reshoring in action. We need to produce silicon carbide chips here.
Thanks for the effort, but this is not convincing. Most investors likely spend 5 minutes looking at their balance sheet and declining margins then tell you it’s a failing company. This is a company and investment that actually need a lot of time to research to have a thesis about “turnaround” case. Current issue is operational issues, management issues, competition rises, solvency issues. Turnaround potential positives 1. Management replaced, new CEO coming 5/1/2025, CFO gone, many VPs gone. New CEO seems good fit for the company. Do your own research, not gonna spoon feed you! 2. Debts restructuring is ongoing, possibly will be done in the near future, Chips money looks promising, 48D tax credit coming layoffs and old fabs is closing down. 3. Wolfspeed’s dominant position will be there vertical integration 200mm SiC production capability, the challenge part of SiC chips is not the devices designs(Infineon, STM, Rohms, and etc are better currently), it is the growing high purity SiC substrates in large diameters. Infineon tried to acquire Wolfspeed for the vertical integration capability in 2017 but blocked by the U.S. government. To this day, Infineon can’t produce SiC substrates and buy from Wolfspeed. The reason many companies now are outcompeting Wolfspeed in SiC devices business is because they are able to buy really really cheap SiC substrates from Chinese suppliers, in some cases they are selling below production cost! [USTR 301 investigation](https://ustr.gov/sites/default/files/files/Issue_Areas/Enforcement/PRC%20Semiconductors%20301%20Investigation_Hearing%20Transcript%20(Mar.%2011%2C%202025).pdf). If you want a speculative investment with potential 10x+ return in a few years. Do your research!
How attractive are they really though? In the last year, they have all been crashing down/remained steady. Nothing stellar. In the last 1 year: -10% for TXN -4% for IFNNY -21% for SK -50% for MCHP -34% for COHR -37% for ROHCY (last 6 months) -43% for ON -43% for STM -86% for WOLF. So to your point the Market Capitalisation of Wolfspeed did crash the most. So yes it is the "worst" BUT momentarily only. One could argue that once WOLF's factories are running AND the overall down cycle for ALL SiC semis is finished, then WOLF's stock has the greatest upside potential, which is exactly what I am looking for as an investor. Why would I want to park my money in some stocks with no upside? My point being that one should really invest outside of SiC semiconductors right now; as a whole, these companies are all in a down cycle. But if you want to prepare the next cycle (as we can all expect an inevitable push towards electrification), I can't see how you would argue against WOLF's upside potential. Again I'd be curious to know why you expect these other companies to be better stocks to invest into?
STM and Infineon don’t have the entire SiC vertical integration. Infineon tried to acquire WOLF in 2016 for SiC vertical integration but blocked by the U.S. government. To this day, they still buy SiC substrates from WOLF. Most of the competitors you mentioned can only make SiC chips but not SiC substrates. The challenge part of the SiC chips is actually growing quality SiC crystals in large diameter which WOLF is clearly the leader in this technology and has spent 40 years to perfect this technology.
$STM Reports Q1 EPS 6c, consensus 11c Reports Q1 revenue $2.52B, consensus $2.65B. The company said, "Q1 net revenues came in line with the midpoint of our business outlook range, driven by higher revenues in Personal Electronics offset by lower-than-expected revenues in Automotive and Industrial. Gross margin was slightly below the mid-point of our business outlook range mainly due to product mix."
Does anybody have any idea on what’s going on with STM and why is it up after such a catastrophic Q1?
Germany is in their 3rd year of recession now. Do you believe they are going to pull themselves out of recession given the current macroeconomic outlook? I think Porsche just released awful numbers... Global deliveries stood at 71,470 cars worldwide, Porsche said, with deliveries down 42% and 10% year-on-year in China and Europe, respectively. The German industrial sector is getting absolutely smoked right now. They had relied on Chinese exports for growth and stability. >STMicro is trading at 12 P/E. If a tech stock trades at 12 p/e there is something wrong with it. Lets dig in... to an analyst report and see why wall st treating this company like the plague. >>Margins remain challenged. Given the lack of visibility on demand in autos (both tier1s and distribution) and the continuing inventory correction in industrials, we expect further sales decline this year and cut our numbers accordingly. We note the guide to Q1 sales down c.24% qq, and given a full channel inventory alongside delayed contract price resets (some still ongoing), the pricing dynamics for key products still seem uncertain. The hope now is that we have seen the margin trough for STM, albeit what a margin recovery would look like from here seems tricky to model given the number of moving parts. There are also ongoing under-utilisation charges, reservation fees (albeit declining), a likely growing depreciation, weak SiC sales and a capacity build (300mm Si, 200mm SiC). So holy shit their sales are down 25% QoQ and Germany's auto market is collapsing right now. >>4Q24 Results Weak Q1 guide. STMicro has guided sales in the MarQ down 24% qq (c.$2.51bn; MSe c.$2.56bn) and the GM% down c.400bps qq (guide 33.8%; MSe 33.8%). This is related to device pricing weakness wrought by worsening dynamics in channel inventory (autos and industrials) as well as a litany of under-utilisation charges. With the inventory correction set to last through 2025, any recovery story is likely more a function of 2026 demand than anything to be found later this year, which we expect will place pressure on FY25 earnings estim.... Weak guidance. Margin weakness. Sales weakness. >Pricing: A China warning? SMIC's (covered by Charlie Chan) warning that they expect mature node business to slow into 2H25 and the potential for intensified price competition as oversupply hits, could be a concern for the pricing environment for general purpose microcontrollers. This, we think, may have an impact on STM too which will be looking for share gains, particularly in the GP MCU space and in China more broadly. This feeds our concerns around gross margin in the second half of the year. Meantime, SMIC has talked to better product mix including a driver from low-end EV subsidies and its ability to charge higher wafer prices as a result. This segues with our expectation that the premium or application-specific microcontroller area will do better and hold pricing more firmly, which would benefit the likes of NXP (link) and Infineon (link). In short, it is the balancing of a potential positive inflection of the broader MCU market with the possible deterioration in volume/pricing of general purpose MCUs in China through 2H25 that informs our neutral view on STM relative to peers such as IFX (OW), which we consider more structurally supported from a product mix perspective. Weak pricing and engaged in a price war against China. Will need to rely on EU tariffs to stay competitive. You might find a bottom here on this stock but there are probably better picks. Opportunity cost is real. You might not lose any money but are there better investment opportunities? Most definitely. What do **you** like about this stock in particular? The German auto market has to recover, and the Chinese have to what, stop competing with them? in order for this company to do well in the future. These are massive assumptions. I get the feeling that you **want** the company to succeed. But why? What makes you believe in a European auto recovery story and this company in particular out-competing China in price?
It was interesting seeing relatively unaffected semis like STM plummet today.
No kidding. I've had STM on my watchlist for like 1.5+ years at this point. With everything else going on (tariffs), might as well keep sticking on the sidelines until we see some relief.
Good call u/\_hiddenscout! [STM back to its lows.](https://www.reddit.com/r/stocks/comments/1it2fy5/comment/mdo0l6l/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) Still no position for me.
Let's pick comparable MCUs with same package,same power and memory. RISC-V open standard core CH32V203C8T6 is $0.41 at 1000 pcs ARM licensed core STM32F103C8T6 is $3.56 at 1000 pcs Which one do you think electronics manufacturers will use?
ON wasn't leading anything. Where did you get that idea? Their new CEO mothballed everything except image sensors from their Aptina acquisition and put every other resource into building a vertical supply chain for Silicon Carbide - and they're still losing to STM, Wolfspeed, and Infineon. They just purchased Qorvo's unique SiC JFET portfolio, as well as SWIR Vision systems - a niche image sensor provider, but the semiconductor downturn isn't over yet. Their competitors might start seeing recovery in Q2, but I don't think ON will see it until Q3 or later with all their debt.
I sold all my TSLA before it started slumping. In the DeepSeek mainstream fear panic I crazily bought NVDA, ON, ADI, and STM on the dip. My bet is even in a downturn we will still need chips, especially specialized ones, and I personally use or have used parts from all these sort of niche IC vendors. I passed on INTC bc it seemed like too much of a gamble and they still don’t have foundry as a service figured out like TSMC does. Now INTC is up 20% in the last month but I don’t understand why. Was I foolish? My crystal ball was in the shop at the time and still is on the fritz.
Ah good point about the upgrade today. I actually didn't notice that all the adjacent names are also popping up. I wonder if STM is also getting interest due to the European defense stocks going up right now. Seems like STM starting turning around earlier than the others (ON Semi, TXN, etc).
With that kind of reasoning, I'd have to buy STM. But nobody talks about it and nobody cares about this stock. So it'll probably never go up lol Even if today it's up +8.88%. Wow that's totally unusual, I'll have to short it.
Hm...haven't been paying attention to STM over the last few days but I wanted to eventually get in. Might've missed the bottom.
Makes sense. Yeah I really feel like there is going to be thr opportunity cost of having capital sit there. I’d rather move back into the space once we get some signs of a market bottom. Could be another quarter or two, even longer. Just have been bad for anyone that deals with auto and or industrial chips. Same with like NXPI, STM, DIOD, MCHP, TXN are a few examples.
It’s hard to say. Personally I would sale and come back once we have some sign of a bottom, but like almost every company that does auto and/or industrial chips are hurting. Same with like STM, DIOD, NXPI, MCHP, TXN
I own it, as well as STM, beaten down pretty bad so far. Supossedly customers still burning down excess inventory from 2022 supply chain semicondutors crisis, my fear is that these companies May have been already designed out due to continuity issues, it have been 3 years already, I dont think the inventory last that long to burn down.
Just cut NEO, XPENG, and LI at a loss. Was holding them for years in the red. Picked up AABI, STM, and FIVN with the scraps. All are in the green so far.
If I want to use SiC switches I rather buy STM lmao
Infineon looks decent, maybe a glimmer of light in the auto/sic? STM was rough last week though, so some nuance there
I sold out mid December (for a loss). I'd like to enter in the auto/industrial chip space at some point, but still waiting for that bottom. I'm watching STM now.
I guess its a reasonable guess to not expect an imminent recovery because of the length and amount of the draw-down, but STM seems to be pretty cheap by most measures, and from what I've seen the bottom usually comes at a time when most people seem to have lost hope in there being a strong recovery anytime soon, before an unexpected catalyst changes sentiment. I might well be missing something though.
$STM Q4 EPS 37c, consensus 17c Q4 revenue $3.32B, consensus $2.83B. The company said, "Our book-to-bill ratio remained below 1 in Q4 as we continued to face a delayed recovery and inventory correction in Industrial and a slowdown in Automotive, both particularly in Europe." Seems like auto and industrial still isn't rebounding yet. TXN has similar takes. Seems like the bottom isn't coming anytime soon.
Did STM report earnings? They are getting crushed
La STM vous souhaite la bienvenue à bord
Thinking of buying leaps on some dog shit semiconductor companies like STM and UMC
Uber lottos (12/20 105c). Selling some RKLB calls and maybe some Archer. Something with STM maybe. And put spread on BYND.
Yeah, if only I had a cool $675k under my pillow to snatch a 1000 shares. This is not a “tradable” stock at these valuations. This is for big money investors or retail traders that have significant assets. For that reason, I buy the opposite end of the spectrum and grab shares of GaN semi companies trading below $5. Or a company like $STM at under $30. But you are absolutely right and I just wish this stock was more “affordable” for people without 7-8 figures.
Just this week ahead of earnings! The P/E is too juicy right now, I know Europoors blah blah blah, but STM chips are everywhere.
Touché but STM is traded on the US market and used from iPhones to Teslas.
I've been eyeing STM for a while. Still not sure if it's the right time to start an entry position.
I think TXN said that China auto sales are picking up. Still not sure about the US, but I really hope it is bottoming or has bottom. Was actually looking to do the same with STM, it's so cheap now.
auto/industrials semis not so hot, STM keeps making new lows, infineon/nxpi/mchp all look pretty meh. valuations on all them seem pretty good though just a question of where we are in the bottoming process
NVDA will dump -33% by the next 18 months... But good luck. I hope for you INTC will hold this ETF with ON or STM. I am investing in SQQQ and SOXS. 🤙
I bought STM at 44$ 6 months ago because of various recommendations on this sub. Now it is 30$. :(
#YUSUKE_ALERT 🚨 Notable sweeps 8/9: $VKTX 70C 8/23 $8K $VKTX 63C 8/16 $8K $TLT 92P 8/10 $50K $KLF 177.5C 8/9 $10K $W 41C 8/9 $7K $STM 30C 8/10 $12K $CENX 15C 8/16 $106K (Vol/OI: 40.53) $EXPE 95P 8/16 $21K (Vol/OI: 12.55) $MBI 4C 8/16 $15K (Vol/OI: 71.43) High volume, varied sectors. Watch for potential moves! #OptionsFlow
#YUSUKE_ALERT 🚨 Notable sweeps 8/9: $VKTX 70C 8/23 $8K $VKTX 63C 8/16 $8K $TLT 92P 8/10 $50K $KLF 177.5C 8/9 $10K $W 41C 8/9 $7K $STM 30C 8/10 $12K $CENX 15C 8/16 $106K (Vol/OI: 40.53) $EXPE 95P 8/16 $21K (Vol/OI: 12.55) $MBI 4C 8/16 $15K (Vol/OI: 71.43) High volume, varied sectors. Watch for potential moves! #OptionsFlow
#YUSUKE_ALERT 🚨 Notable sweeps 8/9: $VKTX 70C 8/23 $8K $VKTX 63C 8/16 $8K $TLT 92P 8/10 $50K $KLF 177.5C 8/9 $10K $W 41C 8/9 $7K $STM 30C 8/10 $12K $CENX 15C 8/16 $106K (Vol/OI: 40.53) $EXPE 95P 8/16 $21K (Vol/OI: 12.55) $MBI 4C 8/16 $15K (Vol/OI: 71.43) High volume, varied sectors. Watch for potential moves! #OptionsFlow
Is STM (STM electronics) a value trap? PE of 9, huge current/quick ratios, Debt/Equiry of 10% and decent margins Yes they got hit with poor auto ship guidance but seems oversold? I know this company might be a bit under the radar as a Swiss chip
I think STM stock has a good chance to go up 30% or more from here
If anyone think TSLA should be at 52 week high, check out STM, it is 52 low.
ON? Based on what analysis? They’re all in on SiC, but not without tough competition from the likes of STM and Infineon.
Wait for STM, IFFNY, TXN, NXPI and similar companies to report earnings - you will see how ARM microcontrollers sell. Then need DD on QCOM, MediaTek and similar to see how their ARM CPUs sell
And what is it? Every Android phone runs ARM. Now performance cores from QCOM will come from Nuvia, but they have plenty of ARM Cortex-M cores inside even in those. All CPUs from QCOM up to today run ARM. Other companies like NVidia, Samsung, Mediatek, Allwinner, Rockchip, etc run ARM Cortex-A cores. Every appliance in your house has a small microcontroller with most likely Cortex-M. The 8051 micros are dying out and being replaced by ARM, which are made by IFFNY, NXPI, STM, TXN, SLAB, etc. Every automotive real time microcontroller is Cortex-R, let it be Nvidia, QCOM or TI. And there are multiples in safety module, infotainment, engine control, sensors, even wiper motors, seat or window movement control mechanisms. And yeah, two more things: 1. Stock soars for a reason. 2. I work with semiconductors for the last 10+ years. TLDR for you: buy puts and short the stock.
here we go again. Intel will survive, but not as a second league fab. Think STM microelectronic.
Meh, most IoT is gonna use a microcontroller of some sort. Raspberry pi's are pretty inefficient from an embedded standpoint, and most IoT will run on some ESP32 or STM32. The Pico makes a decent amount of sense, but using a whole computer(like the pi) doesn't make much sense for an embedded device where you're trying to squeeze as much performance out of a tiny board as possible.
The few names I've been looking at are ACLS and STM really. Possibly ON, but I already own NXPI because they offer a little dividend and they are really great with inventory management. Both NVDA and QCOM are really pushing for auto, which makes sense, since cars are basically computers now. Just a lot of the autos and industrial names have been seeing a lot of slowness, part is because these companies are more geared towards EVs, which have seen a slowdown. Another great name that has seen some slowness is AMKR. They do more testing, but they are building a new facility near the TSMC plant for work for apple. [https://www.apple.com/newsroom/2023/11/apple-announces-expanded-partnership-with-amkor-for-silicon-packaging/](https://www.apple.com/newsroom/2023/11/apple-announces-expanded-partnership-with-amkor-for-silicon-packaging/) I'd imagine business should be picking up within the next few quarters. Should hopefully see PCs rebounding and some devices, plus if AI pcs/phones pick up, could cause a new device refresh cycle. AMKR fundamentally is pretty good. Has a higher float than I would normally like, but still have 54% insider ownership. TTM PE is 21, Forward PE is 17. PS is 1.2 and PB is 2 while having a PEG of 1.87, so basically this is a great price for a long term hold.
At least with TXN, they do dumber chips and more exposure to industrials and autos, which has seen a ton of slowness for like the past 2 or 3 quarters. NXPI has done a great job of managing inventory levels, but some other names in the space have been doing pretty bad like ON, STM, ACLS
why INTC is not at $45-50 ??? or STM ???
Yea, I believe the acquisition happened like 6 years ago. I have been programming and designing PCB around Atmel MCU for 15 years now, it’s my favorite brand. I do love their ATXMega series, it provides DMA for asynchronous IO and their complexity is far less than a ATSam ARM versions. I am a AVR junky. Recently I had to switch to EsspressIf because sadly Atmel have nothing comparable with WiFi and Ethernet. I was using ATSam4E16xx for a main controller board that was powered via PoE, but they have no WiFi options. Also lwip library overhead started give problems with missed frames on busy network where port isolation wasn’t available. I believe the CPU can’t jump fast enough to the ISR and free the DMA channels for the EMAC peripheral. We had similar problems with a STM, and the ESP32 seems to handle the lwip and embedTLS very well. I bought the ATSamA5D3, as it can run Linux and should handle TCP stock and TLS, but haven’t had time to try it. Downside is this is significantly more complex hardware design then drop an ESP32 module on a PCB, and way more expensive BOM. I really wish Atmel do make an ESP32 equivalent option. https://preview.redd.it/n81eb5euatyc1.png?width=3024&format=png&auto=webp&s=1585bff43ed44cf07dc902d74477086bc9179d59
As an embedded software engineer, I love Atmel chips. They have their IDE right in the dot, since it’s built on top of Microsoft Visual Studio. Slow but robust. I worked with an MSP430 which I used their IDE, and wasn’t too impressed with the tools. I also worked with the a STM32xx ARM and IntelliJ which provided a step up from their own IDE. But I do like their virtual system configuration tool, it spits out all the peripherals register values based on what you need, saved tons of time of banging the head on the wall and stock on reading erratic data sheets (one of the Atmel problems lol). On the Atmel side, ASF is a bloated mess, I hate it. They all have pro and cons. EspressIf (on the Chinese side) new node MCU are impressive, and their IDF installed on Microsoft Visual Code via extension and their debug tools are pretty good. Their IDF is amazing and well documented. I have used ESP32 and I am impressed with those little guys. Working FreeRTOS and lwip plus embedTLS right off the box, it’s sweet, makes you focus more on your application vs the low low level stuff and data sheets. I which Atmel would come up with similar MCU options.
STM is my fav. As a current Microchip employee lmao
STM isnt a US company. Maybe youre thinking of Microchip? Im also in the embedded field, and my take is that the engineers at intel are sluggish and don’t care that much. Its a legacy company and will never keep up with the competition
Amazing to me that the bad STMicro results didnt tank the sIC/auto related names today. STM, NXPI, ON, WOLF, etc all hanging in just fine or even up
$STM | STMicroelectronics Q1'24: Q1 Revenue: $3.47B (Est. $3.61B) Q1 Gross Margin: 41.7% (Est. 42.3%) Q1 EBIT: $551M (Est. $603.82M) Major Cuts in FY'24 Guidance: Revenue Forecast: $14B to $15B (Prior: $15.9B to $16.9B) Gross Margin Forecast: Low 40s (Prior: Low to Mid-40s) Insights: Notable slowdown in automotive semiconductor demand and ongoing industrial correction. Weakness in the co.'s general purpose MCU business. Demand for chips in personal electronics picked up in Q1 but did not offset automotive slowdown.
What about STM stock, its a cheaper alternative to TSM?
I used this thinking when stocks like Tesla were too expensive for me, instead I bought shares in companies who make components for electric vehicles. I didnt see the heady gains of the Tesla stock, but i made really good gains from low value stock (STM was one of those buys back in 2019.) I've missed the boat on Nvidia stock, but i used the same thinking and bought some HPE shares early last week, and right now I'm gleaming as they've shot up 15% in 2 days. But where do Nvidia cards go, into servers and supercomputers. I'm holding for the long term as I like the stock for a few reasons. 1) If we're talking AI then how do you get the most out of AI? You need Super Computers, and HPEs ownership of CRAY is just that. How else are you going to process those AI workloads? As our use of AI increases the speed at which we need to process those workloads only increase, meaning we need more supercomputers. So I would expect to see this business grow. 2) AI. HPE has AI embedded in everyone of their solutions in some form or factor. It is the businesses that buy their products that will benefit from this AI. Enabling them to automate a lot of the operational overhead of running on prem servers/storage/networking. Using AI to proactively monitor those environments that will improve things like user experience and reliability. If you're a business owner then saving time and money, having maximum uptime and happy customers and staff is what you want. Companies will buy into this to improve their speed of business and gain a competitive advantage in their market. 3) Their pending Juniper acquisition, this makes so much sense to me. They will be the second largest networking vendor to Cisco. This is a margin rich business, just like Cisco. Every business needs a network and both Aruba and Juniper have been growing whilst taking marketshare off Cisco. Albeit demand has reportedly slowed off in the past quarter for all networking vendors, but they will bounce back. I see this acquisition creating another Cisco sized business in the years to come. 4) Their stock has been reliable, and i see it as a safe investment with a low risk of losing money. I'm quietly hoping low risk high gains. But this is why I'm investing, as its a safe bet. 15% in 2 days, next stop the moon?
STM, MCHP, TXN, GFS, IFNNY, ADI, SWKS to name a few.
I think STM own some of their own fabs also.
I mean they all kind of do. There isn't a chip company that is specialized around reducing power consumption, at least not to my knowledge. There is different type of chip technologies that user power differently. However, they all try to optimize power and computing as much as possible. Like there is silicon carbide, which is uses less power. Companies like STM, ON, NXPI are some of the bigger players there. However, those type of chips are not for things like AI. If you are talking about energy usage in general, it's the GPU stuff in data centers that use a ton of power. You can look into electrical companies that help with that, companies like $IESC $POWL $VRT $FIX $MOD $NVT are a few examples.
Put a few on STM, gonna invest in others like VTV or TSMC.
I would be careful with ACLS. I brought them up before. The issue with some semi names right now is that autos and industrials are really weak. Like it might not be bad for a long term hold, but it's hard to say when the bottom will hit for those sectors, especially since the EV transition has been weird. That being said, you do want to buy these names on weakness. If you want a really great resouce around chips in particular, the best youtube content I've seen is from: Chip Stock Investor. They produce fantastic content, not trying to sale you anything and does a great breakdown on companies and their views around them. CLS is pretty cheap, but they are a really low margin business, but their business line with data center is growing like double digits. Even QCOM isn't too badly priced. If you wanted to do some semis with autos, some interesting names to look at that I like more than ACLS would be like STM, ON, NXPI. Even IESC is still on the cheap end in terms of valuation, same with FLEX. I don't think you ever bought them, but even at these levels STRL is still not terribly expensive.
You are not disagreeing with my statement "ARM is a long-term losing bet." RISC-V is already depriving ARM of profits. Microchip has FPGA SoCs with RISC-V processors. Lots of Chinese vendors are selling essentially STM-compatible ICs with RISC-V MCUs in them. These are starting to get really popular. It's already a pain point for ARM when negotiating new licensing deals. It will only get worse as more advanced RISC-V designs come out. ARM still has a technical advantage in the higher-end CPU designs used in smart watches, mobile phones and tablets, and in having a menu of IP to chose from when designing custom MCUs. The question is whether there is real long-term growth to be had. Any PEG valuation that does not discount the stock's future growth due to that competition is going to over-value the company.
It is all about supply and demand. Chip factories are very expensive to build/operate, and required high pay professionals to run it. Knowing the corporate greedy, they will likely shut down the factories to maintain profits in the down turn. The US corporations have no long term vision. They are always in the reactive mode. AS I stated, by the time they got the factories up and running, we will be in the semi down cycles. The semi is very cyclical. We're probably near the peak with the AI holding it up as other parts have been declining, hence Intel, TXN, STM etc...
Good point. I mean I can’t picture it being good. Like autos/indistrials are seeking weakness while devices and like pcs are picking up in the chip space. MobileEye had some lowered numbers from a week ago, STM was great, AEHR has been decking since their earnings which also talked about slowness. NXPI and TXN also saw weakness. My best guess is that the EV transition isn’t going as expected because first adopters now have them and demand isn’t as strong now.
$AIT Q2 Non-GAAP EPS of $2.24 beats by $0.13. Revenue of $1.08B (+1.6% Y/Y) beats by $20M. For fiscal 2024, the Company now projects EPS of $9.35 to $9.70 on an adjusted basis (prior $9.25 to $9.80), sales growth of 1% to 3% (prior 1% to 4%) including 0% to 2% on an organic daily basis, and EBITDA margins of 12.1% to 12.3% (prior 12.0% to 12.3%). Updated adjusted EPS guidance excludes the $3.0 million tax benefit in the fiscal 2024 second quarter related to a deferred tax valuation allowance adjustment. $STM Q4 GAAP EPS of $1.14 beats by $0.18. Revenue of $4.28B (-3.2% Y/Y) misses by $50M. Capital expenditure payments, net of proceeds from sales, capital grants and other contributions, were $798 million in the fourth quarter and $4.11 billion for the full year 2023. ST’s guidance, at the mid-point, for the 2024 first quarter is: Net revenues are expected to be $3.6 billion vs. the consensus of $4.08 billion, a decrease of 15.9% sequentially, plus or minus 350 basis points. $MBLY Q4 Non-GAAP EPS of $0.28 beats by $0.01. Revenue of $637M (+12.7% Y/Y) beats by $3.25M. Revenue increased 13% year over year to $637 million in the fourth quarter, consistent with the preliminary results provided on January 4th, 2024. Future business backlog continues to grow, with 2023 design wins projected to generate future revenue of $7.4 billion across 61 million units.
Agreed What’s interesting in the chip space right now, feels like auto and industrial are seeing weakness. Feels like they were strong the few years, but with autos, feels like it’s slowing. NXPI, MobileEye, AEHR, all taking about slowdowns. Also STM reported this morning with a revenue miss.
I've been eyeing Axcelis too, just it's been wonky pricing the last few weeks. I do think it's a great long term hold, but the auto slow down does worry me as well as how the stock might react off news. TER has popped up into my screener from time to time but haven't really followed the company as much. I don't really follow the testing market as much. Just looking at some of the fundemetals, some things that are kind off for me, is the decline in revenue. I would ask why. Like I just looked at their last earnings presser, and revenue is still down 15% YoY last quarter, with even 2022 being a down year. Like revenue has been declining since 2020, so makes me wonder if companies over order or any issues with glut from the pandemic. Fundementals aren't bad, but they aren't great too. Feels like the company is probably priced at a good price, but nothing wrong with owning a great company at a great price. Just again, don't know enough about them to say that, but if you have done your research, then doesn't seem like the worst investment out there. Also looking at their investor slide deck: [https://ir-api.eqs.com/media/document/6eb3b782-ee8c-422e-a538-f377515b5712/assets/Teradyne%20Oct%202023%20Earnings%20Call%20Slide%20Deck.pdf?disposition=inline](https://ir-api.eqs.com/media/document/6eb3b782-ee8c-422e-a538-f377515b5712/assets/Teradyne%20Oct%202023%20Earnings%20Call%20Slide%20Deck.pdf?disposition=inline) Seems like all sales are prety much down in all segments. With IFNNY, not sure about them either, but since they aren't on an US exchange, it's for me to research. Like I use finviz and stockanalysis in terms of looking up fundementals and IFNNY isn't listed. If you do like SiC semis, have you looked into just STM? They also have a ton of auto exposure, but they are a pretty big company in the sic space and have really solid fundementals. We can't link youtube videos here, but I'd suggest looking up chip stock investor channel. They aren't selling you anything and actually give a great breakdown of what a company does and some of the fundementals. Not completely semi's, but I've been buying AMKR and CLS recently. Both are on the cheap end. AMKR is going to be doing the packaging for Apple out of the new TSMC plant in AZ and CLS builds out customer data center racks. I'm bullish on hyperscalers moving into making their own chips in the future and I think CLS will greatly benefit.
my biggest holdings are up big TSM and STM 
thank you for the reply! I agree on the risky status of the automotive industry, for that two weeks ago i halfed my position on STM (following the chaos with Mobileye) , in the long run i have trust in them, especially in Infineon, but i strongly agree. Thanks for the comment, i'm still planning to increase diversification as i'm not satisfied with my exposure due to my heavy reliance on automotive semis and Airlines
Hi Euro fren. Just taking a high level view… I would assume Zeiss moves heavily in sympathy with ASML. Infineon and STM would be slightly risky as they are both heavily weighted towards automotive semis and the sentiment there is absolutely shit. Really good companies though!
ST Microelectronics $STM They are still below all time highs. ST microelectronics stands to gain from electrification of transport and government sponsored green energy initiatives… Sales of hard to produce silicon carbide switching transistors imo will be what drives higher revenues and profits over the next couple of quarters STM supplies the majority of high voltage semiconductor content across Tesla’s entire range of vehicles and energy products. They also have numerous other top tier automotive and industrial manufacturers as customers. Anyone want to add more color to my analysis here? Please do!
Any thoughts on ACLS? Heard they are going to be supplying WOLF with their machines from their factory expansion. I don't know a ton around the silicon carbide chips per say, but I do follow companies like STM, ON, NXPI and seems like industrial is also slowing down a bit, but automative is still expanding. Also, any thoughts around the possible slow down in automative as we see more companies announce cutting back on EV's in general? Thanks for the input, always great to talk to someone in the industry.
Long SOXS 😅🙏🤷 I'm short semi... Amazing bubble between ON NVDA AMD AVGO ... Only STM maybe some room to go 🤷
I'm in STM for the long-haul because of SiC but I think estimates are still distorted from the chip shortage - I expect a rocky road.
I bought STM shares 2 weeks ago and I’m planning to keep them up to at least 50€
StoneCo Enel Chile Riot Platforms Chewy PayPal SoFi HIMS Asana Veeva STM Opendoor
>et Infineon is currently trading at 15PE, with 47bn market cap on the DAX whereas STM is trading at 9 PE infineon is in the business of ships for EVs and renewable energy which will lead to big groth, so their PE should be justified dunno much what exactly stm does besides apple being their biggest client
STM is about to close at a yearly all time high .
Distributors exploited the chip supply crunch, charging exorbitant amounts of money for parts in high demand. Not to mention the counterfeit parts companies had to contend with, as distributors and peddlers prioritized profit over vetting the origins of the components. I've heard numerous horror stories from friends working in smaller companies. Fortunately, I work for a company sitting on billions of dollars in cash, boasting healthy margins, and not employed by an auto manufacturer with piss poor margins and engineering standards. So sorry for not having a good opinion about distributors. Relative to a engineer, an FAE or AE from a distributor is indeed incompetent; saying otherwise would be a blatant lie. GM and Ford have all the bottom-of-the-barrel engineers, the Engineering work we do is orders of magnitude more complex than what people do at Auto manufacturers because of all the complex RF work involved with IoT devices. GM Engineers opinion mean nothing to someone working for a FAANG-level company. My stock compensation alone is more the total compensation of the design engineers I know at auto manufacturers. So please, don't tell me how you make three times more now because you never got paid the top 10% total compensation working as an engineer in the automotive domain. so your attempt to throw shade at me regarding sales vs. design compensation is not meaningful lol IoT devices aren't even among the top three money-makers for our company. Our other lucrative segments shifted to STM micro earlier this year, as our company overall did not appreciate how NXP cut us loose without prior notice. Worked with NXPs app engg team for the longest time, they were incompetent AF. They had to bring someone from the R&D team into the conversation all the freaking time, it was painful and at some point we got accustomed it it. STM on the other hand are easy to deal with, their app engg team is sufficiently knowledgeable, our development cycles are unbelievable smoother now. I don't see the bigger picture I admit it and you don't supply to big tech because most of them buy directly from manufacturers but you get offended when I say you don't see the bigger picture either.
ASML is the best European semiconductor stock not STM in my opinion
The chips they sell aren't sensitive from a national security point of view, the US has no interest in blocking them as far as I understand. STM is not ASML, or NVDA, they don't work or produce the same kind of chips at all. A lot of STM revenues are from China, they provide chips for their main EV-makers and STMwill open a new fab in China around 2025 (joint venture with Sanan Optoelectronics) to supply silicon carbide specifically for the various EV companies there and the Chinese market. There is a solid cooperation structure there and it doens't look like it's going to end anytime soon.
Well that's why I'm highlighting the fact it is mispriced imo. STM has more revenue, better margins, more profits than Infineon. Yet Infineon is currently trading at 15PE, with 47bn market cap on the DAX whereas STM is trading at 9 PE and 39bn market cap. To me it doesn't make sense at all. I think STM has been severely mispriced in recent years, and it continues today even when compared to its direct competitors. I don't know about your point regarding market share I'll confess, I thought they were doing pretty good and gaining market share recently actually in several areas. I'll see if I can dig up the source.
So what’s the difference to Infineon for example? European tech stocks are usually valued worse than their American equivalent. I take it as an advantage that they aren’t as rich as the American stocks. But STM has an abysmal market share compared to others, but I would say they still have a bright future a head of them. Especially with the EU subsidising everything related to microchips.
The most undervalued semi is NVDA, after its last earnings its PE has dropped significantly and growth remains strong. STM is not growing earnings
The entire sector is in bubble territory. End of debate for me. The only one still undervalued could be STM. https://preview.redd.it/s4u87rso6v3c1.png?width=1435&format=png&auto=webp&s=c5fbc724cb0bce23aa99ed98a955695056cea806
STM is one of the few semiconductor stocks that are in fact cheap. Look at STM and you'll know what massively undervalued is.
Valuation is really low. STM typically traded around 15-25 PE in the years before and since the pandemic (think around 16 PE in 2021, and up to 24 in 2020-21, which is more or less typical for the sector). It's now been less than 10PE (going as low as 7) for like a year, and was shorted to death throughout 2022. Looking at the whole picture its price has really gone nowhere despite the fact they grew revenues and profits 20% over 2022, and it has proved quite resilient throughout 2023. They've had gross margins close to 50% for the past couple of years essentially and I think a lot of people thought their margins would collapse back down because for over 10-15 years (before the pandemic) the chips they made were effectively bought & sold as commodities and were cheap. They make chips for automotive, energy, industrial mainly, plus personal electornics, sensors and that kind of thing (so not CPUs or GPUs like NVDA or Intel or whatever, their competitors are ON Semi, Infineon, etc.). Automotive is their main segment npow and their most profitable and even in the current "slowdown" they are expecting 30% y-o-y growth there, personal electronics/PC market seems to be turning a corner already, industrial is their most shakey segment at the minute but even that looks like it may just basically hold up more or less where it currently is until better days which could well come back sooner rather than later. They don't "reward" shareholders with a lot of buybacks or dividends currently because their deal is that they re-invest 75% of their cash flow into new fabs (4bn net CapEx this year for example) and increasing the company's fundamental value, with a stated objective of 20bn revenue for 2025-2026 with a 50% gross margin. Currently their net margin is around 27-30%. They were at 15bn yearly revenue in 22 and this year will end up around 17bn. If they get more efficient as the new fabs ramp-up etc. which is always the case in the industry as I understand, I can see their margins holding up and them reaching their stated objectives in 2025 depending on the macro picture, etc. Their are simply perfectly positioned for the major transitions the whole world is driving to (transport electrification, digital transition, industrial automation, renewable energy, etc.)
These are the stocks I'm personally investing in right now, so take everything with a grain of salt and absolutely take the time to DYOR: * Pfizer **PFE** is a contrarian buy... everyone's buying Eli Lilly and Novo Nordisk and people are kind of ignoring Pfizer as the "too big to fail" pharmaceutical... * STMicroelectronics **STM** is absolutely insane... It's a semiconductor stock that just kind of lives under the radar. However, it's been supplying chips to Apple since 2014 and has plenty of other customers. It's extremely profitable and enjoys a P/E ratio of 8-9. If you want to invest in Apple, but think Apple is too expensive, STM is the way to go. Unlike other chipmakers, STM designs and manufactures its chips and is also reasonably well de-risked from China with plants all over the world. * Norwegian Cruise Line **NCLH** is a play that might only really work out in the distant future, but has so much potential. Pre-COVID this was a stock that was trading at \~$50. It's now trading at $13-14 despite the fact that its earnings have more or less recovered. Investors haven't warmed up to NCLH because of the risk of the significant risk of a recession, which would make things difficult for NCLH as it would have to take on even more debt than it did during the pandemic. However, if everything goes to plan, expect a 300-400% return in a few years. * Upwork **UPWK** is undeniably the best run start-up on the stock market (at least financially). In 2020-21, Upwork was hemorrhaging money, like all other freelancing platforms. Unlike other platforms, they seem to be very committed to becoming profitable. The last few quarters have been absolutely brilliant and they're actually finally profitable. There is also a chance that Upwork might emerge as a monopoly in its industry. It's only real competitor is Fiverr, which is based in Israel. It's unclear how the war will affect Fiverr. That said, Upwork is superior to Fiverr in every conceivable way and has great network effects. * **ATRFX**... this is a bit of an unusual one because it's not an individual stock, but an alternative mutual fund. I think a tactical allocation towards ATRFX is probably wise. Unlike other funds, ATRFX aims to profit from the volatility in the stock market and its strategy seems to be really working... delivering total returns of +115% over the last 5 years (versus the S&P 500's +72%). Check it out. * Finally... **WISE**... on the London Stock Exchange. I'm not going to say much about it, but WISE is freakin' awesome (just ask their customers). It's also massively undervalued due to being on the LSE. I have a weird feeling a lot of awesome tech start-ups in Europe might in the long run eventually end up listing their shares in the US, leading to significant price appreciation.
$STM Q3 GAAP EPS of $1.16 beats by $0.08. Revenue of $4.43B (+2.3% Y/Y) beats by $50M. “Our fourth quarter business outlook, at the mid-point, is for net revenues of $4.30 billion vs. the consensus of $4.45 billion, declining year-over-year and sequentially by about 3%; gross margin is expected to be about 46%.” “The midpoint of this outlook translates into full year 2023 revenues of about $17.3 billion vs. the consensus of $17.39 billion, representing 7.3% year-over-year growth and a gross margin of about 48.1%.”
ATOM has potential STM install and is a loaded powder keg