St. shines: rival Microchip raises guidance on industry recovery
The US company expects revenues to grow by 4 per cent, up from its previous forecast of flat performance. For Nvidia's CEO, the company's next generation of chips is in 'full production'
Le ultime da Radiocor
Patto Stabilita': Giorgetti, Ue intervenga prima che paziente sia moribondo
*** Rai: ok a conti 2025, utile a 9,3 mln, primo risultato positivo dal 2017
Patto Stabilita': Giorgetti, sono ottimista, nostra proposta e' razionale (RCO)
(Il Sole 24 Ore Radiocor)- Renewed confidence in the chip and artificial intelligence sector is pushingStmicroelectronics in the Italian Stock Exchange. The French-Italian company's stock benefited in particular from a rise in guidance for the fourth quarter from US rival Microchip. The US company said it expects revenues to grow by 4% compared to its previous forecast of a flat performance, as it is experiencing a generalised recovery after the significant reduction in inventories in recent quarters.
"We believe that the improvement in demand, which is significantly above normal seasonal trends, is also a clearly positive signal for European groups," write the Citi analysts, citing in particular just St andInfineon Technologies, which is travelling at a good pace in Frankfurt. Experts point out how both companies provided guidance for the December quarter that was below normal seasonal trends, as they are still clearing some inventory and maintaining low levels of plant utilisation. "There is a possibility that December quarter revenues for both will be higher than the cautious guidance provided a couple of months ago," they write from Citi, "but we view this as less relevant than improving the trajectory in the first quarter of FY2026 (both of which are roughly in line with seasonality) and in the year ahead."
For the analysts of Intermonte, those of the American company are 'positive messages also for St, which is largely exposed to the same end markets' as Microchip, 'particularly with regard to automotive and industrial recovery (about 40% and 20% of St's turnover in 2025, respectively)'.
Also contributing to renewed optimism in the industry are the words of Nvidia's CEO, Jensen Huang, who stated at the Consumer Electronics Show in Las Vegas that the company's next generation of chips is in 'full production', ready to meet growing demand. According to the CEO, the new chips can offer five times the computing capacity for artificial intelligence than the company's previous chips in running chatbots and other AI applications. Thus, in addition to the aforementioned St and Infineon, other European stocks in the sector also rose: Asml and Be Semiconductor.
