PARIS, Feb 2, 2026, 01:50 CET — Premarket
- Broker commentary is growing more upbeat, though the stock’s fate still hinges on auto and industrial demand trends.
- Restructuring expenses and factory utilisation remain under scrutiny following last week’s outlook.
- This week’s peer earnings may shift the mood for European chip stocks.
STMicroelectronics starts Monday on a stronger note after Oddo BHF raised its price target late last week. The Paris-listed shares ended Friday up roughly 1.3%, closing at 23.84 euros. Meanwhile, the U.S.-listed shares in New York dropped 2.5% to $27.89, dragging the stock down about 3.3% over the past five sessions. (MarketScreener)
That divide says it all. Investors are weighing if the recovery chatter holds water or if it’s just a rebound after a tough year for chipmakers tied to autos and industrial sectors.
The timing is crucial as more read-throughs are just around the corner, while ST’s cost-reset programme remains underway. If Monday’s tape stays steady, it could cement the idea that the earnings shock has passed; a sluggish start, though, would leave the stock stuck in “prove it” territory.
ST projected first-quarter net revenue near $3.04 billion and a gross margin around 33.7% in its Jan. 29 results release, factoring in roughly 220 basis points from unused-capacity charges (basis points equal hundredths of a percentage point). The firm reported a $30 million net loss. Operating income included $141 million in impairment and restructuring charges, with CEO Jean-Marc Chery outlining plans to “reshape our manufacturing footprint and resize our global cost base.” (Euronext Live)
Oddo BHF nudged its target price up to 32 euros from 30 euros, noting that fourth-quarter results generally beat expectations, though earnings-per-share remained a weak point. The broker suggested these figures might trigger a wave of upward estimate revisions. (MarketScreener)
Conviction remains weak. “Slightly better than expected fourth-quarter results and first-quarter guidance that’s above seasonal norms suggest the group is tracking improved trends,” Stephane Houri said in an email following the release. He noted that the overhaul of ST’s European manufacturing setup is a key variable. (Reuters)
Traders are focused on a few near-term signals: factory utilization, pricing trends, and if auto clients ease up on inventory cuts. Without shifts there, margins could remain under pressure despite better sales.
After the U.S. market closes Monday, NXP Semiconductors will release its fourth-quarter and full-year earnings, with a follow-up call set for Feb. 3. Traders tend to watch NXP’s outlook closely, treating it as a stand-in for trends in auto and industrial chip demand. (NXP)
Infineon Technologies plans to release its fiscal Q1 results on Feb. 3 in Europe. Changes in how the company discusses autos, power chips, or inventory might directly sway sentiment on ST and similar firms. (Infineon)
ST has a public calendar this week that features events related to its microcontroller and connectivity platforms. It’s scheduled to attend gatherings in San Diego from Feb. 2-5. Traders will be looking for fresh demand signals, though price moves will likely still hinge mostly on earnings. (STMicroelectronics)
The downside scenario remains straightforward. If car and industrial orders stay uneven, or if restructuring drags on and expenses mount, the stock could fall back into a valuation debate rather than riding a cyclical upswing.
The key events this week include NXP’s Feb. 2 earnings report after the U.S. close and Infineon’s update on Feb. 3 in Europe. Investors want to see solid signs that the auto-chip slump is truly easing, not merely taking a breather.
