Analyst Upside

AU · rank #8 · 2026-07-27

STMPA

PARIS · EUR · $47.57B (USD)

SignalStrong Buy5.0strength 5.0 / 10
verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Composite score
Z-score blend of all factors below.
1.412
EPS revisions (30d)
Change in consensus EPS estimate over the past 30 days ($/share).
+$0.03
Net revisions (30d)
Number of analysts revising upward minus downward.
7
Insider signal (90d)
Analyst upside
Consensus target $65.13
+39.3%
Momentum acceleration
3-month minus 12-month momentum.
-17.24%
Analyst rating
5 = Strong Buy, 1 = Strong Sell.
4.10
Gross margin TTM+34.3%
52w high$70.85
Market cap (USD)$47.57B

The AI research card

Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.

Summary

STMicroelectronics N.V. is a diversified European semiconductor manufacturer supplying analog, microcontroller, power, and RF optical solutions to the automotive, industrial, personal electronics, and communications sectors.

Rationale

The positive EPS revisions and 39.3% analyst upside are validated by ST's recent Q2 2026 non-GAAP EPS beat of $0.31 against the $0.26 consensus, supported by inventory normalization and robust demand for AI-related RF and microcontroller products.

Material risks

  • 1Severe pricing pressure and aggressive competition from Chinese producers in the Power & Discrete segment have led to a $99 million operating loss and negative 21.4% margin, risking structural commoditization.
  • 2The company's heavy concentration in cyclical automotive and industrial markets makes its revenue and margins highly vulnerable to macroeconomic downturns and capital spending swings.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Proceed