10 Cheap Semiconductor Stocks to Buy Now

7. STMicroelectronics N.V. (NYSE:STM)

Number of Hedge Fund Holders: 22

P/E: 13.28

STMicroelectronics N.V. (NYSE:STM), a leading global semiconductor player headquartered in the Netherlands, designs and manufactures chips for automotive, industrial, personal electronics, and communication sectors. Despite industry headwinds, Kepler Capital recently reiterated a “Buy” rating with a €31.00 price target, reflecting strong medium-term confidence.

Currently trading at €20.38, STMicroelectronics N.V. (NYSE:STM) projects Q2 revenue of $2.71 billion — down 16% YoY but up 7.7% sequentially — signaling early signs of stabilization. Gross margin guidance of 33.4%, though lower than last year’s 40.1%, remains robust given weak demand trends in automotive and industrial segments.

Notably, STMicroelectronics N.V. (NYSE:STM) is positioning for future growth through innovation. On April 16, the company unveiled Stellar with xMemory, a game-changing automotive microcontroller aimed at simplifying software-defined vehicle (SDV) development and cutting costs. Production begins in 2025, targeting the EV market’s evolving needs.

Financially, STMicroelectronics N.V. (NYSE:STM) reported FY revenue of $13.27 billion and Q1 revenue of $2.52 billion, both sharply down over 20% YoY. Analyst sentiment remains cautious but constructive: among 29 ratings, 38% are “Buy” and 59% “Hold,” with a median price target of $25.00, suggesting a 27.5% upside.

STM’s innovation pipeline and market leadership make it one of the best cheap semiconductor stocks to buy.