Mizuho Raises Price Target on STMicroelectronics (STM) Amid AI and Satellite Growth Opportunities

STMicroelectronics N.V. (NYSE:STM) ranks among the best technology growth stocks to buy under $100. Mizuho increased its price target for STMicroelectronics N.V. (NYSE:STM) to $68 from $56 on May 19, keeping an Outperform rating on the company’s shares. As customers migrate to 800-volt systems, the firm predicts that AI server content will top $230 million per gigawatt.

STMicroelectronics N.V. (NYSE:STM) estimated that AI revenue could surpass $1 billion by 2026. Mizuho set its increased price objective at 30x its fiscal 2027 earnings per share projection, up from around 25x previously.

Furthermore, STMicroelectronics N.V. (NYSE:STM) recently indicated that it expects to generate more than $3 billion in total revenue from its semiconductor space division between 2026 and 2028, owing to rising demand for chips employed in low-Earth orbit satellite systems. The company stated that its LEO revenue hit roughly $600 million in 2025, up from $175 million in 2021, and is nearing $1 billion in 2026.

STMicroelectronics N.V. (NYSE:STM) stated that its decade-long supply collaboration with Starlink on satellites and user interfaces will give it a competitive edge in retaining a large portion of its near-90% market share as the market grows and attracts competition.

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 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.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1