1. STMicroelectronics N.V. (NYSE:STM)
On May 15, 2026, Deutsche Bank analyst Robert Sanders raised the firm’s price target on STMicroelectronics N.V. (NYSE:STM) to EUR 42 from EUR 32 while maintaining a Buy rating on the shares.
Last month, Citi analyst Andrew Gardiner also raised the firm’s price target on STMicroelectronics N.V. (NYSE:STM) to EUR 52 from EUR 31 and maintained a Buy rating on the shares. Citi described the company’s Q1 report as strong, highlighting revenue and gross margins that came in ahead of expectations. The firm also raised its valuation multiple on the stock to reflect improving momentum.
Earlier in April, STMicroelectronics N.V. (NYSE:STM) reported Q1 EPS of 13c, versus the consensus estimate of 22c. Revenue totaled $3.1B, compared to the consensus estimate of $3.19B. President and CEO Jean-Marc Chery said first-quarter revenue came in above the midpoint of the company’s guidance range, excluding contributions from the acquisition of NXP’s MEMS sensor business. The performance was driven primarily by stronger engaged customer programs within personal electronics and CECP, while gross margin also exceeded the midpoint of guidance due to a more favorable product mix. On a year-over-year basis, first-quarter revenue increased 23%, or 21.4% excluding the acquired MEMS sensor business. Gross margin came in at 33.8%, operating margin was 2.3%, and net income totaled $37M. The company also said that despite ongoing macroeconomic uncertainty, it saw improving demand trends during the quarter, supported by strong bookings activity and normalized inventory levels across distribution channels.
STMicroelectronics N.V. (NYSE:STM) designs, manufactures, and sells semiconductor products across automotive, industrial, personal electronics, and AI-related infrastructure markets globally.
While we acknowledge the potential of STM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than STM and that has 100x upside potential, check out our report about the cheapest AI stock.
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