In This Article:
STMicroelectronics STM shares have plunged 48.6% on a year-to-date (YTD) basis against the Zacks Semiconductor-General industry and the Zacks Computer & Technology sector’s return of 127.4% and 29.8%, respectively.
Over the same time frame, shares of its competitors, including NVIDIA NVDA, Amtech Systems ASYS and Texas Instruments TXN, have climbed 183.2%, 35.9% and 15.7%, respectively.
This underperformance stems from the deterioration in customer backlogs and order entry during the third quarter specifically in the Industrial and Auto markets. Additionally, it reflects a clear shift in customers' priorities, moving decisively from fully battery electric vehicles (EVs) to hybrids and transitioning from premium to economy models.
However, in a recent move to further broaden its capabilities and offer a diverse portfolio, STMicroelectronics collaborated with Renault group’s Ampere, one of the prominent players in the EV space.
Under the agreement, STMicroelectronics and Renault Group will work closely on the supply of Silicon Carbide power modules, as part of their collaboration on a powerbox for the inverter for Ampere’s ultra-efficient electric powertrain.
Leveraging Ampere’s expertise in EV technology and STMicroelectronics’ expertise in advanced power electronics, the powerbox is created to have the best performance-to-size ratio for all of Ampere's electric vehicles, including 400 Volt battery electric vehicles and Segment C-EVs with 800 Volt batteries, enabling greater autonomy and faster charging.
STMicroelectronics N.V. Price and Consensus
STMicroelectronics N.V. price-consensus-chart | STMicroelectronics N.V. Quote
Strategic Collaborations to Aid STM’s Prospects
STMicroelectronics’ continued efforts in long-term partnerships might help to recover the stock in the near term.
The recent collaboration with Qualcomm Technologies, a subsidiary of Qualcomm Incorporated, for the next generation of industrial and consumer IoT solutions developed by edge AI, might be beneficial for the stock.
This collaboration comprised the integration of Qualcomm’s AI-powered wireless connectivity technologies, starting with Wi-Fi/Bluetooth/Thread combo system-on-a-chip with the microcontroller (MCU) ecosystem from STM.
Developers will enjoy seamless connectivity software integration into STM32 general-purpose MCUs, including software toolkits, facilitating faster and broader adoption via STM’s worldwide sales and distributor channels.
Expansion in Industrial Market to Support STM’s Growth
The recent introduction of EVLDRIVE101-HPD motor-drive reference design by STMicroelectronics featuring a 3-phase gate driver, STM32G0 microcontroller and 750W power stage on a circular PCB just 50mm in diameter that easily fits into drones, robots and drives for industrial equipment, such as pumps and process-automation systems, is a notable move.
The latest launch of ultra-low-power STM32 MCUs that can reduce energy consumption by up to 50% is a plus for its Industrial end. It reduces the frequency of battery replacements, and the impact of discarded batteries, allowing designs to operate without batteries, using energy-harvesting systems like solar cells.
STM's launch of ST Edge AI Suite, a consolidated collection of software tools uniquely created to enhance the development and deployment of embedded AI applications, is a major innovation.