STMicroelectronics Shares Plunge on Profit Miss Despite AI Optimism

STMicroelectronics, the Franco-Italian chipmaker serving automotive, industrial and consumer-electronics markets, has been emerging from a prolonged downturn in its core auto and industrial businesses. Investors had priced in a faster recovery, helping the shares more than double in 2026 before the results. AI data centers and low-Earth-orbit satellite communications are increasingly important growth engines as the company broadens beyond its traditional markets.

On July 23, STMicro reported revenue of $3.49 billion for the quarter ended June 27, up 26% from a year earlier, and net income of $222 million. EBITDA of $679 million missed the $797.7 million consensus, while its third-quarter revenue midpoint of $3.70 billion trailed analysts’ $3.72 billion estimate. The U.S.-listed ADRs sank 18.67%. STMicro expects fourth-quarter revenue above $4 billion and raised its data-center targets to more than $1 billion in 2026 and well above $2 billion in 2027.