STMicroelectronics Forecasts Q3 Revenue of $3.7B, Below $3.79B Estimate
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STMicroelectronics NV's stock fell over 14% after the company projected third-quarter sales of approximately $3.7 billion, which is below analysts' expectations of $3.79 billion. Despite a year-over-year revenue growth forecast of around 16%, the outlook has raised concerns about the company's recovery amid increasing demand for artificial intelligence-related products.
The chipmaker anticipates that AI sales will exceed $1 billion in 2026 and reach 'well above $2 billion' in 2027. However, the weaker-than-expected Q3 forecast has overshadowed these longer-term growth prospects, leading to a significant drop in the company's stock price.
Sources
Every quote below is verbatim from the article it is attributed to.
“STMicroelectronics NV plunged the most in a year after the chipmaker forecast third-quarter sales that missed analysts’ expectations, dimming hopes for a stronger recovery on the back of artificial intelligence data center demand.”
Bloomberg — STMicro Drops as Weak Forecast Eclipses Longer Term Outlook“STMicroelectronics Sinks On Soft Q3 Sales Outlook”
Yahoo Finance — STMicroelectronics Sinks On Soft Q3 Sales Outlook“Bloomberg: STMicro forecasts Q3 revenue up ~16% YoY to $3.7B, below $3.79B est., and expects AI sales to pass $1B in 2026 and be “well above $2B” in 2027; STM falls 14%+ — ”
techmeme — STMicro forecasts Q3 revenue up ~16% YoY to $3.7B, below $3.79B est., and expects AI sales to pass $1B in 2026 and be "well above $2B" in 2027; STM falls 14%+ (Bloomberg)
Earlier versions
- Jul 23, 5:11 AM — STMicro Forecasts Q3 Sales Below Expectations Amid AI Chip Demand (1/1)
- Jul 23, 5:11 AM — STMicroelectronics Forecasts Q3 Revenue of $3.7B, Below Analyst Estimates (1/1)