STMicroelectronics (ST) saw its U.S.-listed American Depositary Receipts (ADRs) climb 3.7% over the past week, ending Friday at $69.31. The stock slipped 0.2% on Friday, after closing the prior week at $66.86. U.S. markets were closed Monday for Memorial Day, but the broader chip sector gained momentum on Thursday, with ST rising 3.2% and Infineon jumping 4.4%, even as the STOXX 600 slipped 0.5%.
Annual Meeting Approves Dividend and Board Changes
The company held its annual shareholder meeting on May 27, where all resolutions passed. Shareholders approved a $0.36 annual cash dividend, to be paid in four quarterly installments. The supervisory board appointed Armando Varricchio as chairman and Nicolas Dufourcq as vice-chairman, both serving three-year terms.
New PowerGaN Chips Target AI Servers and Industrial Markets
On May 26, STMicroelectronics launched its 700V PowerGaN chips, which use gallium nitride (GaN) instead of standard silicon. These chips are designed for high-efficiency power conversion in AI servers, robotics, industrial gear, and high-end consumer electronics. The move marks a strategic push into AI-linked products as the company diversifies beyond its traditional automotive and industrial chip markets.
CEO to Address Investors at BNP Paribas Conference
Chief Executive Jean-Marc Chery will speak at the BNP Paribas Exane CEO conference in Paris on Tuesday, June 2, at 11 a.m. CET. The session will be available as a listen-only webcast, with playback access open through June 16. Investors will be watching for updates on ST's AI, satellite, and power semiconductor strategies.
First-Quarter Results and Q2 Outlook
ST reported first-quarter revenue of $3.10 billion, with a GAAP gross margin of 33.8% and GAAP operating income of $70 million. The company targets second-quarter revenue of $3.45 billion at the midpoint. Chery noted in April that the company was seeing "improving demand" and that distributor inventory had normalized, despite ongoing macroeconomic uncertainty.
Satellite Market: A Key Growth Driver
ST is targeting more than $3 billion in total revenue from chips used in low-Earth orbit (LEO) satellites between 2026 and 2028. LEO satellites, which operate closer to Earth than geostationary ones, enable broadband and direct-to-phone services. "We are just in the early innings of this market," ST executive Remi El-Ouazzane told analysts this month.
Analyst Sentiment and Risks
Despite the recent rally, analyst consensus remains cautious. MarketScreener lists 21 analysts with an average price target of $59.35, below the latest U.S. close of $69.31. The company still needs to prove that demand is genuinely recovering in automotive and industrial markets while successfully launching new AI, power, and satellite programs. Risks include potential slippage in Q2 guidance, softening auto orders, or a broader pullback in semiconductor stocks.
As Chery takes the stage on June 2, the key challenge will be to keep investor focus on AI, satellites, and distribution recovery—rather than the stock's recent run-up. The market has given ST a quick narrative, but now demands clearer evidence of sustainable growth.
