Hardman Johnston Global Equity Added STMicroelectronics N.V. (STM) Due to Strategic Drivers

Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Global Equity Strategy” investor letter for the third quarter of 2025. A copy of the letter can be downloaded here. The portfolio underperformed in the quarter due to stock selection. The composite returned 5.02%, net of fees, compared to 7.62% for the MSCI AC World Net Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Hardman Johnston Global Equity Strategy highlighted stocks such as STMicroelectronics N.V. (NYSE:STM). STMicroelectronics N.V. (NYSE:STM) is a semiconductor manufacturing company. The one-month return for STMicroelectronics N.V. (NYSE:STM) was 13.30%, and its shares gained 5.09% over the last 52 weeks. On December 26, 2025, STMicroelectronics N.V. (NYSE:STM) stock closed at $26.24 per share, with a market capitalization of $23.321 billion.

Hardman Johnston Global Equity Strategy stated the following regarding STMicroelectronics N.V. (NYSE:STM) in its third quarter 2025 investor letter:

"Additionally, we initiated a position in STMicroelectronics N.V. (NYSE:STM). STMicro is a leading supplier of analog semiconductors, serving automotive, industrial, and personal electronics markets. After a post-pandemic period of oversupply and excess inventory weighed on the industry through 2024, but evidence suggests the analog semiconductor cycle reached a trough in early 2025. Indicators such as growing customer backlogs, improved order signals, and better inventory visibility point to a recovery in the near future. STMicro is well positioned to benefit from this restocking cycle, with potential for significant gross and operating margin leverage as underutilization costs decline and structural manufacturing optimizations take effect. Beyond cyclical tailwinds, the company has medium-term growth opportunities, including incremental iPhone content on new models and exposure to emerging markets like LEO satellites and AI data centers, supporting structural expansion."

STMicroelectronics N.V. (NYSE:STM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 19 hedge fund portfolios held STMicroelectronics N.V. (NYSE:STM) at the end of the third quarter, compared to 30 in the previous quarter. STMicroelectronics N.V. (NYSE:STM) delivered revenues of $3.19 billion in Q3 2025, which is $17 million above the midpoint of guidance range. While we acknowledge the potential of STMicroelectronics N.V. (NYSE:STM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered STMicroelectronics N.V. (NYSE:STM) and shared the list of best semiconductor stocks to buy heading into 2026. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.