Muted Recovery Dampens European Chip Makers Like ST Micro

4 days ago

Chloe Mele

"And of course, we've got our eye on the European chip makers, the likes of ST Micro. Given the West Texas Instruments outlook that came out, ST Micro down 2.7%. Is that the only reason? Uh, well, it seems like ST Micro and also the semi-infin to those chip makers that are exposed to the industrial and automotive chip sector because their peer over in the US, West Texas Instruments, provided quite a disappointing forecast and then said that the recovery in those end markets was slowing down. So the key takeaway for those European chip makers is that you know the industry is in recovery but it's quite a muted recovery, and that muted rebound is dragging down those shares in ST Micro and Infinian even as the talk about the AI boom has led to some bullishness in the broader semiconductor sector."

The speaker discusses how European chip makers such as ST Micro are under pressure, with ST Micro falling 2.7% following a disappointing forecast from its US peer. While there is a recovery in the semiconductor industry, it remains muted, particularly in the industrial and automotive segments, which is negatively impacting these stocks.

Related Stocks