St and tech in the spotlight, positive signals on the sector from Nxp's accounts

(Il Sole 24 Ore Radiocor) - Stmicroelectronics is in the spotlight at Piazza Affari and leads the rebound of European stocks in the sector, with Infineon rising in Frankfurt and Asml (+1%) and Be Semiconductor well-bought in Amsterdam.

Driving the purchases were the positive messages on the sector coming from the accounts of Nxp (+16.9% in after hours trading on Wall Street), which closed the first quarter with revenues up 12% to $3.18 billion, exceeding analysts' expectations of $3.15 billion. The positive surprise, however, is on the second quarter of the year, with a revenue guidance implying sequential mid-point growth of 8%, better than consensus expectations. "The momentum we have built should accelerate for the rest of 2026," CEO Rafael Sotomayor said in a statement. Nxp then indicated that the adjusted gross margin for the current quarter will be between 57.5 per cent and 58.5 per cent, while analysts expected 57.6 per cent. The company revised 2027 targets implying double-digit growth in 2026 and 2027. A constructive message also came from the automotive sector, thanks to the transition to electrification. With regard to cost and supply chain pressures, the company expects the pricing impact in the second quarter to be 'immaterial', while at the moment the Middle East conflict is not impacting orders in automotive and industrial.

"Overall, after Texas and St, the messages from Nxp also confirm an environment of good recovery for the analogue world, both on the cyclical side" and "thanks to the new opportunities that AI opens up for the sector", comment Equita's analysts, who emphasise St's interesting positioning in the latter segment.

With regard to St, positive messages also came from Intermonte's roadshow, where CFO, Lorenzo Grandi, and Director of Investor Relations, Cedric Pugni, reiterated the recently announced financial targets, pointing out that 'the main point is that AI-related demand far exceeds current capacity, with a potential increase linked to the company's ability to execute'.