PARIS, May 30, 2026, 20:03 (CEST)
STMicroelectronics’ U.S.-listed ADRs finished the week up 3.7% amid a jump in AI and space chip names, but valuation questions remain. The ADRs slipped 0.2% Friday to $69.31, after ending last week at $66.86. U.S. markets were closed Monday for Memorial Day.
Why it matters now: ST is shifting from a recovery play in automotive and industrial chips into a wider push in power semiconductors, AI servers and low-Earth-orbit satellites. The stock’s rhythm is different. Now investors want to know not only when its old end-markets come back, but how much of the AI buildout ST can take.
Chip stocks moved up in Europe on Thursday. STMicroelectronics climbed 3.2% while Infineon jumped 4.4%. The STOXX 600 slipped 0.5%. Soitec’s results helped drive gains for chip names as investors kept an eye on Middle East risk.
STMicroelectronics’ latest news came from its annual meeting, not earnings. The company said all resolutions passed at the May 27 shareholder meeting, including plans for a $0.36 annual cash dividend paid out in four quarterly instalments. The supervisory board chose Armando Varricchio as chairman and Nicolas Dufourcq as vice-chairman, both on three-year terms.
ST pushed further into AI-linked products on May 26, rolling out new 700V PowerGaN chips that use gallium nitride, not standard silicon. These parts are built for better power conversion in certain designs, targeting AI servers, robotics, industrial gear and some high-end consumer tech.
Chief Executive Jean-Marc Chery will get another shot at shifting the narrative on Tuesday, June 2. He’s set to speak at the BNP Paribas Exane CEO conference in Paris at 11 a.m. CET. The session will run as a listen-only webcast, with playback access open through June 16.
ST set its new benchmark with first-quarter revenue at $3.10 billion, a GAAP gross margin of 33.8%, and $70 million in GAAP operating income. The company is aiming for $3.45 billion in second-quarter revenue at the midpoint. Chery told investors in April that ST was seeing “improving demand” and distributor inventory had normalized, even with macro uncertainty still out there. ST News
Space is still the main growth driver for ST. The company is aiming for more than $3 billion in total revenue from chips used in low-Earth orbit (LEO) satellites between 2026 and 2028. LEO satellites operate closer to the planet than geostationary satellites. They can deliver broadband and direct-to-phone services. “We are just in the early innings of this market,” ST executive Remi El-Ouazzane said to analysts this month. Reuters
Infineon raised its guidance for 2026 this month. The German chipmaker said demand is strong for its AI data-center power supply solutions and automotive orders are up. CEO Jochen Hanebeck called the data-center demand “very high.” Reuters
But it’s not all one-way for STMicroelectronics. MarketScreener’s consensus page lists 21 analysts with an average target of $59.35—under the latest U.S. close. The company still needs to prove demand really is picking up in auto and industrial while launching new AI, power and satellite programs. Second-quarter guidance could slip, auto orders might soften, or semiconductor stocks could fall back, tightening the margins for mistakes.
Looking to the week, the first job for the stock is clear: Chery has to keep the market fixed on AI, satellites and the distribution recovery, not the rally so far. Investors have handed ST a quick narrative, but the demand now is for clearer evidence.
