STMicroelectronics Stock Plunges 20% After Q3 Revenue Guidance Miss; Analyst Sees Buying Opportunity
STMicroelectronics (STM) shares fell over 20% in two trading sessions after the company guided Q3 2026 revenue to $3.7 billion, missing the $3.8 billion consensus estimate. Despite the guidance miss, the article highlights strong Q2 2026 results: net revenues grew 26% year-over-year to $3.49 billion, earnings surged 4.2x to $0.31 per share (beating estimates of $0.27), and free cash flow turned positive at $75 million versus a -$152 million outflow a year ago. The MEMS and Microcontrollers segments showed robust growth of 26% and 34.5%, respectively. The company is repositioning toward AI infrastructure, data centers, and silicon photonics, with data center revenue expected to exceed $1 billion in 2026 and $2 billion in 2027. STM holds $3.1 billion in cash against $1.06 billion in short-term debt. The article argues the selloff is overdone and presents a buying opportunity for long-term investors, noting the stock has nearly doubled year-to-date and has a market cap of $46.3 billion.
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