In This Article:
We recently published a list of 10 Stocks Stand Strong Amid Cautious Market Environment. In this article, we are going to take a look at where STMicroelectronics N.V. (NYSE:STM) stands against stocks that stand strong amid cautious market environment.
The stock market showed resilience on Wednesday, with all major indices ending in the green territory anew, as investors weighed news of President Donald Trump’s imposition of a new round of tariffs while digesting minutes of the Federal Reserve.
The Dow Jones rose by 0.16 percent, the S&P 500 increased by 0.24 percent, while the tech-heavy Nasdaq eked out a 0.07 percent gain.
Despite the news, ten companies managed to stand out, posting modest gains during the trading session.
To come up with Wednesday’s top performers, we considered only the stocks with more than $1.9 billion in market capitalization and $5 million in daily trading volume.
Note that some stocks we have covered in-depth over the past few days have been excluded from this list.
A worker assembling the inner circuitry of a semiconductor product.
STMicroelectronics N.V. (NYSE:STM)
STMicroelectronics N.V. (NYSE:STM) saw its share prices rise by 8.44 percent on Wednesday to close at $26.47 apiece as investor sentiment was buoyed by its upgraded rating from an investment bank.
On Wednesday, STM received a “buy” rating from Jefferies, an upgrade from the “hold” rating previously. It also earned a 47-percent higher price target of €34 versus the €23 set previously.
According to Jefferies, the improved rating was based on several key expectations, including a normalization of operations following inventory correction and increased components in the upcoming iPhone 17, coupled with a rebound in industrial demand.
Other growth drivers for STM include Artificial Intelligence solutions, low-Earth orbit satellites, silicon photonics, and auto microcontroller units (MCU).
Overall, STM ranks 8th on our list of stocks that stand strong amid cautious market environment. While we acknowledge the potential of STM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than STM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.