I’m glad to see STMicroelectronics (STM) (“STMicro”) getting more of its fair due in the market, as that hasn’t always been the case with this diversified chip company. Up almost 25% since my last update, doubling the return of the SOX in that time, but still lagging on a year-to-date basis, STMicro has benefited from another beat-and-raise quarter, as well as greater confidence about the security of the company’s book going into what will likely prove to be peak lead-times.
I’m beginning to see a stronger case for even more growth from STMicro over the next decade than I’d previously modeled, with STMicro leveraged not only to well-understood opportunities in autos, but also other industrial power markets, as well as 3D sensing, MCUs, and IoT. If STMicro can generate long-term growth more on the order of 9% over the long term, not impossible given underlying volume growth in markets like EVs, automation, and IoT, there is still worthwhile upside.
Read more here:
STMicroelectronics Stays On Track As A Top Power Play
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