STMicroelectronics (STM) Falls on Weak Industry Outlook

We recently published Wall Street’s 10 Worst Performing Stocks. STMicroelectronics N.V. (NYSE:STM) is one of the worst performers on Wednesday.

STMicroelectronics dropped its share prices by 4.91 percent on Wednesday to close at $31.77 apiece as investors unloaded positions ahead of the release of its second quarter earnings performance.

STMicroelectronics N.V. (NYSE:STM) is scheduled to announce the results of its financial and operating highlights before market open on Thursday, July 24, where analysts expect the company to report $2.77 billion in revenues and earnings per share of $0.10.

Additionally, investors remained cautious amid President Donald Trump’s threat last week that he would likely impose a new round of tariffs on chips and pharmaceutical products as soon as August 1, the latest deadline for the introduction of his reciprocal levies on other countries.

In other news, STMicroelectronics N.V. (NYSE:STM) earned a higher price target of $50 and “outperform” rating from investment firm Baird amid improving gross margins, silicon carbide (SiC) revenue, and the clearer path to recovery of industries that it supplies its products.

While we acknowledge the potential of STM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.