Jim Cramer Says He “Would Be a Buyer of STMicro”

STMicroelectronics N.V. (NYSE:STM) is one of the stocks Jim Cramer recently looked at. A caller inquired about the stock during the lightning round, and Cramer replied:

It’s cheap. It’s good. Now, people say it’s cheap. What do you mean?…  like 40 times earnings versus the others with growth? It’s actually okay. I would be a buyer of STMicro.

A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels

STMicroelectronics N.V. (NYSE:STM) is a semiconductor manufacturer that designs and produces electronic components, including sensors, power management solutions, and microcontrollers. Hardman Johnston Global Equity Strategy stated the following regarding STMicroelectronics N.V. (NYSE:STM) in its third quarter 2025 investor letter:

Additionally, we initiated a position in STMicroelectronics N.V. (NYSE:STM). STMicro is a leading supplier of analog semiconductors, serving automotive, industrial, and personal electronics markets. After a post-pandemic period of oversupply and excess inventory weighed on the industry through 2024, but evidence suggests the analog semiconductor cycle reached a trough in early 2025. Indicators such as growing customer backlogs, improved order signals, and better inventory visibility point to a recovery in the near future. STMicro is well positioned to benefit from this restocking cycle, with potential for significant gross and operating margin leverage as underutilization costs decline and structural manufacturing optimizations take effect. Beyond cyclical tailwinds, the company has medium-term growth opportunities, including incremental iPhone content on new models and exposure to emerging markets like LEO satellites and AI data centers, supporting structural expansion.

While we acknowledge the risk and potential of STM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.