Market & financial news desk
STMicroelectronics N.V. (STM) fell roughly 17% Thursday, trading near $54.50 and dragging European technology indices lower. The Stoxx Europe 600 declined 0.7%, with the chipmaker's move weighing on French and Italian benchmarks.
The Quarter Was Good
The results themselves were strong. Second-quarter revenue rose 26% year over year to $3.49 billion, and earnings per share came in at $0.31, both ahead of expectations. The company also raised its revenue forecast for the data center business.
The Guidance Problem
The selloff traced to the outlook. Management projected third-quarter net revenue of approximately $3.70 billion against a consensus near $3.80 billion. For a stock that had rallied substantially and carried an elevated multiple, a guidance figure below expectations left little cushion.
The Sector Backdrop
The move extends a difficult stretch. STMicroelectronics had already fallen roughly 21% over the prior month amid a broader semiconductor selloff driven by AI-spending concerns and profit-taking. Over the full quarter, the stock remains up meaningfully, which is part of why a guidance miss triggered such a sharp repricing.