STMicroelectronics (STM) Falls 15.9% on Dismal Q2, Weak Outlook
STMicroelectronics fell by 15.86 percent on Thursday to close at $26.73 apiece as investor sentiment was weighed down by a dismal earnings performance and weak industry outlook amid tariff uncertainties.
In its earnings release, STMicroelectronics N.V. (NYSE:STM) said it swung to a net loss of $97 million in the second quarter of the year from a $353 million net income in the same period last year.
Net revenues were also lower by 14.4 percent at $2.766 billion from $3.232 billion year-on-year.
Looking ahead, STMicroelectronics N.V. (NYSE:STM) remained cautious about its business outlook for the rest of the year, with revenues for the current quarter expected to decrease by 2.5 percent year-on-year to $3.17 billion, but increase by 14.6 percent on a sequential basis.
Photo by Vishnu Mohanan on Unsplash
'While we expect Q3 revenues to show a solid sequential growth … we are still operating amid an uncertain macroeconomic environment. Given these external factors, our priorities remain supporting our customers, accelerating new product introductions, and executing our company-wide program to reshape our manufacturing footprint and resize our global cost base,' said STMicroelectronics N.V. (NYSE:STM) President and CEO Jean-Marc Chery.
While we acknowledge the potential of STM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
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